I owe the IRS from last year. Can a creator accountant reduce it or set up a payment plan?
Short answer
A creator accountant can't make a balance disappear, but we can check whether the tax was right in the first place, show you how to set up an IRS payment plan, and fix what caused it so it doesn't happen again.
Otavio Mayole, Co-founder, DeCypher FinancialsUpdated
Here's how we work through it:
- File, even if you can't pay. The penalty for not filing is usually bigger than the penalty for not paying, and you generally need to be filed up to get a payment plan.
- Check the return. We look for missed write-offs, the wrong home office method, income counted twice, and other errors. If an amendment would lower what you owe, we'll tell you.
- Set up a payment plan. Most creators can apply online through the IRS. We walk you through it.
- Look at penalty relief where it might apply.
- Fix the cause. Weekly bookkeeping, a set-aside account and on-time quarterly payments, so next April isn't a repeat.
What we don't do: negotiate settlements with the IRS for less than you owe.
If DeCypher prepared your return and you're on one of our bookkeeping and tax strategy plans, we handle IRS letters about it for you.