Personal & Business Tax

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Tax Preparation

Are you anxious about filing your on tax returns? Even a simple return may require multiple forms. The instructions often evoke more questions than answers. While a computer software program may help, there’s no substitute for the quality of service and advice you’ll receive from an experienced tax professional.

Here are a few of the benefits you’ll reap when using our service:

• We’ll prepare all of the appropriate forms and record all figures and calculations accurately.
• We’ll make sure that you receive all of the deductions and credits to which you are entitled.
• We’ll file your return electronically to speed delivery of refunds.
• We’ll work with you to adjust your payroll withholding to make sure you send the right amount to each tax authority – no more, no less.
• We’ll show you how to adjust your finances to take advantage of tax benefits on future returns.

Are you a sole proprietor? Have you been so focused on your business that you haven’t paid close attention to your books? No worries! We’ll tidy things up and prepare your Schedule C as part of your personal income tax return. Then we’ll help you set up an easy system to keep your books current going forward.

Tax Planning

Proactive planning is the key to minimizing your tax liability. We work with businesses and individuals to pay the least amount of tax required by law. A few of the strategies that we consider include:

• Splitting income among several family members or legal entities to take advantage of lower income tax brackets
• Shifting income or expenses from one year to another when it can yield a lower tax rate
• Deferring or eliminating tax liability through use of tax-advantaged investment vehicles
• Tracking all expenses eligible for itemized deduction
• Taking advantage of tax credits

Your unique circumstances will determine the strategies that we can employ to maximize the money you keep in your pocket.

IRS Audit Representation

If you have been selected for an IRS audit, professional representation can set your mind at ease. We’ll take the lead in dealing with the tax authorities based on our familiarity with their procedures and our intimate knowledge of the tax code. We’ll make sure that you don’t get an unpleasant and unwarranted surprise at the end of the process.

Tax Problems

Even if you have not been targeted for an IRS Audit, you may be aware of problems that will catch up with you eventually. Common examples include:

• Missed tax filings for one or more years
• Insufficient funds to pay the tax liability when due
• Failure to remit payroll taxes

We’ll work with you to review your prior tax years and make sure that all of your tax filings have been submitted accurately. If you don’t know what’s included in your tax record, we’ll help you get copies from the tax authorities without raising any “red flags.” We’ll assess your tax liability and the associated interest and penalties. Then, we’ll work with you on an approach to negotiation. For example:

• You may be able to settle your tax debt for less than the full amount owed if the tax authority deems your offer to be the most they might collect within a reasonable time period. This arrangement is referred to as an offer In Compromise.
• We could work with the tax authority on a payment plan to resolve your debt. This approach protects you from asset seizure to settle your obligations. It may be possible to secure relief on penalties and/or compound interest.
• The IRS provides Innocent Spouse Relief when for an aggrieved party when his or her spouse or former spouse failed to report income, reported income improperly, or claimed improper deductions or credit.
• If your circumstances do not lend themselves to a negotiated settlement, then it may be necessary to seek protection through a Bankruptcy filing.

It is far better to face your problems than to wait for them to land on your doorstep. We’re here to help in any way we can.

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Cottonwood Asset Management
4505 S. Wasatch Blvd. #300, Salt Lake City, Utah 84124

801-520-1353