Is Tax Relief the same thing as Tax Resolution?

Tax relief and tax resolution tend to be used interchangeably almost everywhere; but they are not quite the same. Tax relief is a broader term which refers to anything that helps minimize tax liabilities and maximize refunds; it can also include tax resolution. Tax resolution comes into play when a taxpayer has tax problems with the IRS or the state.

If the IRS approves my (Extension of Time to File) request, will it also apply to the taxes I owe?

Simply, no. Filing your taxes and paying them are two different matters. An Extension of Time to File only extends the due date for filing your tax return—you still need to pay your taxes before the regular deadline. Not paying your taxes on time will result in interest accumulation interest on top of the amount due.

What happens if I further delay paying the back taxes that I owe?

Back taxes are taxes owed but were not paid by the regular due date. If left unpaid, they will grow to an enormous debt since they accumulate interest, penalties, and interest on the unpaid penalties on a regular basis.

The IRS has approved my Installment Agreement request, now what?

As the name suggests, you will have to make monthly payments to clear the taxes that you owe within an agreed-upon timeframe. It is worth mentioning that it is always in the taxpayers' best interest to pay their taxes in full by the deadline because no matter what type of agreement you have with the IRS, interest on the unpaid amount will continue to accrue on a regular basis.

When is the deadline for filing taxes?

The deadline for filing, as well as paying your due taxes is typically 15th of April, but it is not absolute and might change depending on that year's situation. For example, filing for 2020 tax returns was extended to May due to the COVID-19 pandemic.

What is Depreciation? And what is the difference between Depreciation and Amortization?

Depreciation and Amortization are both used to determine how much value assets of a business lose over their useful life. The difference between the two is that depreciation is used for tangible assets such as the business's computers, desks, vehicles, etc. On the other hand, amortization is used to account for intangible assets and the most common intangible asset for a business is its brand name or goodwill.

How many types of Depreciations are there?

There are generally four methods accountants in the U.S. can use to account for depreciation; those are Straight-Line Depreciation, Declining Balance Depreciation, Sum-of-the-years' Digits Depreciation, and Unit of Production Depreciation.