CPA or EA firm
The consultant whose payment plan was about to default
Illustrative example. Not an actual client.
The facts
A payment plan on two years of unpaid tax, set up by the firm along with her returns.
Planning. The plan covered the past, but a new year’s balance was building. When it posted, the agreement would default.
- No estimated payments for the current year on income of about $750,000
- Penalties on both years that may qualify for relief
- A clean history before these two years
- All income on Schedule C, with no retirement plan and a business structure worth reviewing
- Tax Set-Aside & Payment Plan
- Penalty Removal
- Should I Be an S-Corp?
- Owner Salary Study
- Retirement Plan for Business Owners
Current-year estimates paid on schedule, so the agreement stays in good standing. First-time penalty relief requested for the earliest year.
Quarterly estimates set aside automatically, and a business structure and retirement plan that lower future tax.
Five planning and compliance services for a client the firm already served, and a payment plan that stays in good standing.
The story
She left a large firm to consult on her own, and three clients followed her. The checks were bigger than her old paychecks, and nobody was withholding anything.
The first April she owed more than she had in the bank. The second April it happened again. Her CPA filed both returns on time and set up a payment plan.
The plan covered the past, but nothing was being saved for this year. In a few months a third balance would post, and the agreement would default.