It’s all fun and games until you get a letter from the IRS.
Just ask Dale, the owner of A-Action Automotive. He thought his accounting software had everything under control, including the withholding taxes for all his employees. And although the quarterly tax forms were completed and sent to the IRS on time, no one was checking whether the payments were being sent. Nobody, that is, except the IRS.
Dale had a problem. “I was so stressed out it made me sick. I didn’t know what to do.”
It was a common mistake, one he swore to learn from, but the damage was already done. The amount he owed, including penalties and interest, seemed overwhelming. How was he going to come up with the money to pay off the IRS? He needed help, and fast.
“I was in a panic, so I hired the first company I could find,” admits Dale. “They quickly quoted me a price to fix my problem, and I sent them a deposit. Their communication pretty much stopped at that point,” he explains with a sigh. “I could never get a hold of them. It seemed like they didn’t care and took forever to return my calls.” That is not the kind of help you need when the IRS is breathing down your neck.
Dale went back online and happened upon El Dorado Tax Solutions, located at 11080 Circle Point Rd in Westminster. Their approach was markedly different.
Nicolette, a tax resolution expert at El Dorado, advises tax-stressed clients every day, and she has some pointers for businesses and individuals who find themselves in debt to the IRS.
First, be wary of any firm that quotes you a one-size-fits-all price. Each case is different, and the pricing should reflect that. “Imagine phoning an auto mechanic and telling him that your car is making a terrible sound, and without taking your car for a test drive, or even popping open the hood, the mechanic gives you a price to fix the problem. You can bet the price will change once he starts the repairs, but by then it’s too late,” explains Nicolette. After an initial conversation, you are better off paying a small fee for the firm to do a thorough investigation of your tax situation. Only then do they have enough information to present you with a plan, along with their price, to make it happen.
Eligibility for most resolution programs is based on a taxpayer’s current financial standing, specifically evaluating asset equity and monthly disposable income.
At this point, many clients realize they need help creating a budget, either personally or for their business, and oftentimes for both. “We were using QuickBooks, but we weren’t taking full advantage of the software. I was busy working on cars and managing my mechanics. Bookkeeping isn’t my strong suit,” admits Dale.
That’s why getting help from a skilled accountant can be just as important as finding the right tax resolution specialist. Again, pick one that takes the time to learn about your situation before quoting you a price. Sara, the bookkeeping manager at El Dorado, explains, “Without accurate financials like profit and loss statements, balance sheets, and payroll ledgers, it’s impossible to determine how well, or poorly, your business is doing. We started a bookkeeping division after realizing just how many of our resolution clients needed help with that.”
And it’s not just for business clients. Individuals with income tax problems can also benefit from an accountant's guidance. El Dorado counsels their clients on spending habits and budgeting, giving them newfound control over their finances. “It’s impossible to negotiate a realistic payment plan for our clients without evidence of their financial condition,” says Nicolette. That’s important because the bargaining position for someone with no assets or disposable income is very different from that of someone with assets that can be sold and a lot of disposable income. Sara adds, “That’s the great part of having both services under the same roof. It allows us to quickly and easily share information between the two.”
But there’s still the pesky job of completing a yearly income tax return. If you are making scheduled payments to the IRS for unpaid taxes, you are on their radar. Keeping current is the best way to stay on their good side, so find a good CPA by using the same process. El Dorado has one on staff, making the income tax process seamless and complete.
“I was totally stressed out and at the end of my rope,” remarks Dale, “but thanks to El Dorado Tax Solutions, I have a manageable payment plan in place, and I feel confident about my bookkeeping. Now I can concentrate on what I do best, keeping my clients on the road.”
Back to that letter from the IRS: It’s not going to read, “Congratulations! Thank you for submitting all your returns and payments accurately and on time. You are a model citizen and truly a role model for all of us to emulate.” So take a deep breath, try to relax, and know that by doing a bit of research and asking the right questions, you can find professionals to see you through your tax debt nightmare.
A Note from the Founder of El Dorado Tax Solutions:
“Most people who walk through our doors aren’t careless—they’re overwhelmed. Tax problems rarely begin with one big mistake but with small issues that go unnoticed over time. By the time someone reaches out for help, stress and uncertainty have usually taken a heavy toll, not just financially, but emotionally as well.
Our goal has always been simple: help people understand their situation clearly and give them a path forward with dignity and confidence. We believe knowledge replaces fear, and clarity creates momentum. When clients finally understand their options, you can almost see the weight lift. That moment, when panic turns into a plan, is why we do this work every day.” - Rollie Kersch