Serving Self-Employed Professionals And Independent Contractors In Minnesota and Western Wisconsin
Self-employed professionals and independent contractors are always under the watchful eye of the Internal Revenue Service (IRS) and the Minnesota Department of Revenue (MDR). Self-employed people who fail to pay the required amount of estimated income taxes and self-employment taxes (FICA) face an assessment for the total amount of taxes due plus penalties and interest. In addition to the taxes due during the current tax year, auditors may choose to review returns going back several years. If any red flags are found, the financial damages can be devastating.
If you are a self-employed person in who resides in Minnesota and is facing an audit or has already received a notice of additional taxes due, call the law firm of Pridgeon & Zoss, PLLC in Edina.
Self-employed professionals are entitled to business deductions that tax authorities often question. Our lawyers are self-employed tax law attorneys who understand the tax code for self-employed individuals. We will aggressively fight to help you protect the deductions and credits to which you are entitled.
Some options for helping self-employed individuals who are facing large unpaid tax balances due include:
Offer in compromise, whereby the taxpayer and tax authorities agree to a lesser amount of taxes owed
Installment agreements, with the tax authorities allowing monthly or quarterly payments over a period of time
Tax appeal to challenge an auditor decision or the assessment of taxes owed
Tax litigation in tax court to dispute the amount owed
Negotiating with the tax authorities to place the account into a currently not collectible status for temporary relief from payment
Tax Write-Offs: Dos and Don’ts
Before you try to write off an expense, you should make sure that it is valid. This can help you prevent future issues.
Uses
As a business owner, you can use tax write-offs to deduct eligible expenses and reduce the amount you owe on your business taxes.
Legitimate Expenses
Depending on your circumstances, you may be able to write off expenses related to:
- Rent
- Vehicles
- Insurance
- Employees’ pay
- Interest
You may not be eligible for everything on the above list, or you may discover that other items qualify for a deduction. For example, if you work from home, you may be able to deduct part of your mortgage interest, repairs or utilities. Your tax write-offs depend on your business and the current laws in effect.
Ineligible expenses
You should not try to deduct any personal or unrelated expenses, as those are generally not allowed. Any discrepancies revealed in an audit can result in fees, fines and other penalties.
It may be difficult for you to determine whether an expense counts as a personal or a business write-off if you work from home. The Internal Revenue Service has guidelines in place regarding the deduction of expenses.
Figuring out whether an expense is deductible is not always easy. But the tax benefits that small business owners can enjoy when they correctly claim write-offs can make the process worth it.
Call To Learn More About The Process For Paying Back Taxes In Minnesota
Integrity is the hallmark of the firm’s success. State and federal tax officials recognize Pridgeon & Zoss, PLLC‘s commitment to the ethical representation of his clients.
When you meet to discuss your self-employment tax liability notice, you will find Mark, David and legal assistant Saree Olson to be professional, courteous and approachable.
We work directly with every client and do not subcontract cases to other tax lawyers or tax workout firms.
Office hours are from 9 a.m. to 5 p.m. on weekdays. Evening and weekend appointments may be available by special arrangement. You can reach us at or 952-835-8320. You may also use the convenient email contact form to explain your circumstances and request a consultation.
