If you owe money to the IRS, working with an attorney to settle with an offer in compromise could mean paying a fraction of the owed amount. This option makes sense under certain circumstances, which can be determined after an initial consultation with one of our tax professionals. It may also be very advantageous to seek an abatement of penalties if your failure to file or pay your income taxes arose from “reasonable cause.”

As a general rule, all U.S. taxpayers are required to report worldwide income, regardless of whether that income is sourced from another country. However, if you also pay foreign taxes on that income, you may get a “credit” for the taxes paid on your U.S. tax return. Finally, you may be required to file an FBAR with the U.S. Treasury if you own financial assets in other countries. If you have brokerage or bank accounts in other countries, please contact us so that we may determine your filing requirements.

If you are self-employed or have other sources of income that does not withhold income taxes before you are paid, you may need to make quarterly estimated income tax payments. Our tax professionals may assist you with projecting your taxable income for the year, and determining whether you should make estimated payments. If that is the case, we will also prepare the federal and/or state payment vouchers and provide the instructions so that the payments are credited to your account correctly.

PPP loans themselves are forgiven tax-free if at least 60% of the loan went to payroll expenses. However, based upon the current regulations the expenses covered by PPP loans are not deductible on 2020 returns.