Tax Preparation Fees
Simple Tax Returns with W2 and 1099
– Starts at $400 Add $100 for Schedule C Independent Contractor. Add $100 for Schedule B Stock Trades. Add $100 for Schedule D Capital Gains or Losses. Add $100 for each Rental Property for Schedule E. Add $100 for each K1.Business Tax Return including S Corp (1120S), C Corp (1120), and Partnership (1065)
– Starts at $1,200 if your files are clean and in order.Tax Resolution Fees
These are the main Resolutions the IRS offers in their Fresh Start Program.
1. Streamline Installment Agreement with Penalty Abatements $1,250 – This is a resolution where the tax payer is not in a hardship situation and makes more than enough to pay their IRS debt. All Streamline Installment Agreement Resolution includes the First Time Penalty Abatement the IRS offers. You DO NOT need to qualify for this.
2. Partial Payment Installment Agreement $3,000 – This is a hardship resolution agreement that will lower the total balance you owe. If you have little monthly income but you have assets such as a home, 401k, or stocks, then this resolution is for you. Your payment will be minimal and you will “ride out” your tax years until they expire in 10 years or less. They will file a lien on your assets until the agreement is over.
3. Currently Non Collectible $2,500 – This is a hardship resolution agreement where the IRS determines that you cannot make any payments AT THE MOMENT. They will stop your payments BUT interest and penalties will continue to accrue. They will also put a lien on your assets. As with all hardship resolutions the IRS offers, they have their pros and cons. Please call us to see if this is the right resolution for you.
4. Offer in Compromise $4,000 – This is a hardship program where the IRS allows you to settle your tax balance for less than the full amount owed. The IRS will consider your unique set of facts and circumstances and factor in your income, expenses, your assets, and ability to pay. Unlike other tax relief companies who charge a percentage of what your tax debt is, no matter how much you owe the IRS, our fee stays the same. The reason is because it’s the same work and we feel transparency is what people want.
STATE SERVICES
The State is a different entity from the IRS. Since the state is harder to deal with than the IRS, we charge a SEPARATE FEE for the Investigation and for State Resolutions.
Installment Agreement – $1,250
Offer in Compromise – $4,000
REVENUE OFFICER or IRS AUDIT- $2,000 in Addition to Resolution
If you have been assigned a Revenue Officer or the IRS audits you.
If you do not have all of your documents (like W2 and 1099) for your Personal Taxes, we can still prepare your taxes. We will order Wage and Income transcripts from the IRS and/or State.
Example 1.
John and Mary need to file their last 2 years of taxes. Their taxes are simple and each only has one W2 form. They have disposable income of $2,000 after they pay their bills. They only qualify for a stream line agreement. After filing their taxes, they have a balance with the IRS at $15,000 and a small balance with their State taxes for $3,000. They decide to pay the State the total amount and be put on an Installment Agreement with the IRS.
Based on this scenario and our fees, preparing the last 2 years of taxes will be $800 at $400 per year. The Installment Agreement is $1,250 so their total is $2,050.
Example 2.
Michael is a real estate agent and has not paid any taxes for more than 10 years. But his business is not as successful in the last couple of years. We have to prepare and file his last 6 years of tax returns. (In most circumstances, the IRS will only require you to file the last 6 years. Not 10 years). While we pull his transcripts, we do a financial statement and discover he has little income after his expenses. We agree to do file his taxes which has a Schedule C. The fee for 6 years of filing is $3,000 at $500 per year. After preparing and filing his taxes, he owes a total of $75k in taxes, penalties, and interest. After careful analysis, we believe he can get a Partial Payment Penalty of $100 a month for the next 6 years because he is in a financial hardship. Our fee for a Partial Payment Installment Agreement is $3,000.
Our total fee is $6,000 to help him file 6 years of back taxes and to get him into a Partial Payment Installment Agreement. He will now pay $100 a month for 6 years which totals $7,200. His original tax liability was $75,000. We helped him become Compliant with his taxes by filing for 6 years and got him in a Fresh Start hardship program and now he is not subject to any collections from the IRS.
Now say in this example, he makes a high income and has a lot of disposable income and can only qualify for an installment agreement. His fee for the 6 years of preparing taxes would still be $3,000 plus an installment agreement resolution fee of $1,250. So his total fee would be $4,250.Example 3.
Mary is a W2 employee who simply has not withheld enough taxes for the last 4 years. She owed $1,000 the first year and didn’t pay. For the next 3 years, she owed money every year and put off paying it so that she owes $8,000 with penalties and interest. Since she is already compliant (up to date) with her tax filings, we do not have to prepare and file any taxes for her. We run a compliance check to see exactly how much she owes and set her up on an installment agreement for 6 years at $125 a month.
Our fee for the Installment Agreement is $1,250 with Penalty Abatements. She doesn’t qualify for the First Time Penalty Abatement because she hasn’t filed in 4 years so the best resolution we can do for her is to set her up on the Installment Agreement. We also advise her to withhold an additional $60 for federal taxes on every paycheck so she doesn’t owe at the end of the year. She decides to hold $100 every paycheck so she can get a small refund every year. Her total fee is $1,250 .
We take monthly payments.Must be paid in full before resolution is complete.