The alternative to high-priced impersonal tax franchises

we want to be your most trusted advisor!

Power of Attorney and Tax Information Authorization Services

Our Power of Attorney Service allows us to protect your rights as a taxpayer by standing between you and the IRS. We can also monitor your IRS account and receive duplicate copies of any notices sent to the taxpayer.

POWER OF ATTORNEY SERVICES

Taxpayers have the legal right to consult with a licensed professional when dealing with the IRS. In fact, the law says that when a taxpayer exercises their right to representation, the IRS employee should suspend the interview. An experienced representative can protect your rights by knowing the tax law and the administrative procedures the IRS is required to follow.

If the taxpayer clearly states to an officer or employee of the Internal Revenue Service at any time during any interview (other than an interview initiated by an administrative summons issued under subchapter A of chapter 78) that the taxpayer wishes to consult with an attorney, certified public accountant,enrolled agent, enrolled actuary, or any other person permitted to represent the taxpayer before the Internal Revenue Service, such officer or employee shall suspend such interview regardless of whether the taxpayer may have answered one or more questions.

Granting Power of Attorney to an authorized allows the Enrolled Agent, Attorney, or CPA to “stand in the taxpayer’s shoes” and respond to notices, handle examinations and hearing without the taxpayer present, and exchange information with the IRS.

 7520(c)Representatives holding power of attorney

Any attorney, certified public accountant, enrolled agent, enrolled actuary, or any other person permitted to represent the taxpayer before the Internal Revenue Service who is not disbarred or suspended from practice before the Internal Revenue Service and who has a written power of attorney executed by the taxpayer may be authorized by such taxpayer to represent the taxpayer in any interview described in subsection (a). An officer or employee of the Internal Revenue Service may not require a taxpayer to accompany the representative in the absence of an administrative summons issued to the taxpayer under subchapter A of chapter 78. Such an officer or employee, with the consent of the immediate supervisor of such officer or employee, may notify the taxpayer directly that such officer or employee believes such representative is responsible for unreasonable delay or hindrance of an Internal Revenue Service examination or investigation of the taxpayer.

 

Using a representative for tax matters restrains the IRS from contacting the taxpayer directly and helps control the process because it takes the emotion out of the issue and allows focus on the law and IRS Practice and Procedure.

WHEN SHOULD A TAXPAYER CONSULT WITH A REPRESENTATIVE?

  • Complex Examinations
  • Any Matter with a Potential to Become Criminal
  • Appeals office Matters
  • Collection Matters including Liens, Levies, and Wage Garnishments
  • Innocent Spouse Cases
  • Asset Forfeiture
  • Voluntary Disclosure
  • Claim for Refund
  • Adjustment of Assessment
  • Penalty Relief

 

Two levels of service are offered:

Power of Attorney and Designated Representative Service (IRS Form 2848) – This service allows us to review your tax information and make inquiries with the IRS regarding the status of your account; respond to any notices, inquiries, hearings etc on the taxpayer's behalf. This service has a $250 annual fee and includes one hour of free representation and a written Tax Account Analysis for the years covered by the Authorization. This service is mandatory for any Tax Resolution Matters

Tax Information Authorization (IRS Form 8821) – This service allows us to review your tax information and make inquiries with the IRS regarding the status of your account but does not allow for any representation of the taxpayer. This service has an annual fee of $100 annual fee and includes written Tax Account Analysis for the years covered by the Authorization. This service is mandatory for any taxpayer requesting an extension to file their tax return.

Individual Tax Return Preparation

We prepare Tax Returns for Individuals

Poughkeepsie's Specialty Tax Preparation

The Tax Alternative Group is Poughkeepsie's specialty tax service providing solutions and strategies for all levels of tax problems. We protect your rights, mitigate risks while keeping taxpayers in compliance with IRS and State tax requirements.

Conveniently located on Route 44 in the Town of Poughkeepsie (Arlington), we serve the residents of the Greater Dutchess and Ulster Counties to include Poughkeepsie, Lagrangeville, Pleasant Valley, Salt Point, Millbrook, Poughquag (Beekman), Pawling, Wappinger Falls, Hyde Park, Staatsburg, Hopewell Junction, Highland (Town of Lloyd), Milton, Marlborough, Esopus, Ulster Park etc.

Our Specialty Tax Service provides year-round Tax Preparation, Taxpayer Representation, and Tax Planning Services. We are the "Alternative" to the high-priced low-value season firms like H&R Block, Jackson Hewitt, or Liberty Tax. We offer more experience and expertise in complex tax matters and generally charge less than these well-known firms.

Preparing and filing your tax return doesn't have to be overly expensive or time-consuming. Most returns can be prepared on the same day. We will interview to make sure we understand your tax situation, prepare your return, and take the time to review and explain the return to you before you sign. Most federal refunds are direct deposited within ten days. State tax refunds often take longer at 3-6 weeks.

Our fees are comparable to those tax chains and lower than most CPA firms. We offer courtesy discounts for children of our clients, students, senior citizens, and union members.

Our Basic Fee Structure

We bill by the forms used in the return and adjust the fee up or down depending on the time to prepare. Form price is based on complexity and risk of the filing. These rates are estimates for these type of returns. We cannot provide an exact estimate without seeing the prior years return and understanding the current year filing. Fees listed are for Federal and one state return.

Individual Returns

$25+              Companion Returns for minor Children of Clients

$100+            Basic Individual Returns (Form 1040EZ

$175+            Individual Returns (Form 1040) with Schedules A&B 

$300+            Individual Returns(Form 1040) with Sch EIC

$275+            Individual Returns (Form 1040) with Schedule D  or E 

$300+            Individual Returns (Form 1040) with Schedule C 

 

Business Tax Returns

We prepare all types of Business Tax Returns to include LLCs, Partnerships, S Corporations, and C Corporations.

We Prepare  Federal and State Tax Returns for All Business Types

Schedule C for Sole Proprietors and Single-Member LLCs

Form 1065 -- US Return for Partnerships

Form 1120S -- U.S. Income Tax Return for an S Corporation 

Form 1120 -- U.S. Corporation Income Tax Return

Form 1041 -- U.S. Income Tax Return for Estates and Trusts

 

Entity and Small Business Returns

$275+            Trust & Estate Tax Returns (Form 1041)

$365+            Partnership Returns (Form 1065)

$450+            Corporation Returns (Form 1120)

$400+            Sub Chapter S Corporation (Form1120S)

$300+            Not for Profit Organization (Form 990)

$200+             Not for Profit Organization (Form 990EZ)

 

 

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The Tax Alternative Group LLC is a Specialty Tax Practice. Our focus is primarily on Income Tax Preparation, Planning, and Representation.

We handle complex tax situations that require competence and experience and do it from a risk-informed compliance and audit defense standpoint. We Diagnose the situation, Research the tax law, Develop Tax Strategies, and Maintain Compliance by Filing Tax Returns and Responding to Notices and inquiries.

Unlike most tax preparers, we aren’t just putting numbers on a form. We understand what the numbers mean and how they affect the calculations that determine the tax. We understand compliance issues, audit flags, and common error traps. We prepare accurate returns and defend them vigorously when challenged – because we are familiar with the legal authorities that dictate proper treatment. These legal authorities include the Internal Revenue Code, Treasury Regulations, Revenue Rulings, and Court Cases.

We are Enrolled Agents, licensed by the US Department of the Treasury, to represent taxpayers in all administrative matters before the Internal Revenue Service. Enrolled Agents demonstrate proficiency in Individual Taxation, Business Taxations, and IRS Practice and Procedure by passing a rigorous three-part exam before licensure. Enrolled Agents are also licensed to practice in all 50 states. Enrolled Agents, Attorneys, and CPA are held to the highest ethical standards of practice under the Circular 230 Regulations.

ADVANCED TAX PREPARATION ISSUES

We handle tax situations that many other tax professionals do not understand, are not licensed to handle, or prefer not to get involved with because of the complexity, time commitment, or risks involved in tax resolution.

Complex Returns

Most tax preparers focus on the bottom line – how much is the refund, or how much is owed. Less attention is placed on proper reporting or understanding what created the tax situation. When the taxpayer doesn’t understand what drives the tax situation, they have lost their opportunity to mitigate and refine their biggest expense – their tax liability.

Complex returns are usually identified as those that involve various forms and schedules. This often involves:

  • The Self-Employed (Sch C and Sch SE)
  • Sale of Stocks, Bonds, and other Capital Assets (Sch D and Form 8949)
  • Owners of Rental Properties (Sch E)
  • Famers (Sch F)
  • Household Employers (Sch H)
  • Excessive Itemized Deductions (Sch A)
  •  

OTHER FACTORS REQUIRING A TAX SPECIALIST

Life Events

Significant Life Events often create barriers to the ordinary care needed in proper tax reporting, and once taxpayers get behind, it becomes a confluence of events that often get in the way of prompt resolution. We have the knowledge and experience to resolve the issues and help you get your life back together.

Small Business Owners

Small Business is the backbone of the US Economy. Congress specifically put special deductions, credits, and “loopholes” in the tax code to promote small business. Small Business Owners need a tax pro that does more than put numbers on a form. As a specialty tax firm, we understand the numbers and the way they affect the tax liability. We can often make suggestions to help restructure transactions to reduce taxable income. We particularly enjoy working with the following Small Business Owners:

  • Building and Construction Contractors
  • Engineers and Architects
  • Manufacturing
  • Professional Service Providers (Doctors, Lawyers, Consultants, etc.)

Real Estate Professional

Real Estate transactions may be very profitable if structured properly. The Tax Code has many incentives for owners of Real Estate. These activities include owning Rental Properties, Flipping Houses, and Real Estate Development.

The term “Real Estate Professional” is a special designation by the IRS that is often misunderstood by taxpayers and tax preparers alike. Properly applied, it can provide significant tax savings necessary to make this type of investment profitable.

Professional Investors (Day Traders)

Professional Investors (Day Traders) earn the bulk of their income through buying and selling short-term securities. These short-term transactions are taxed as ordinary income and taxed at higher rates than long-term gains. This activity requires a knowledgeable tax specialist to implement an appropriate strategy to maximize deductions, credits, and loopholes.

Fiduciary Services

We provide Personal Fiduciary Services and advice and act in your best interests. This is particularly important when dealing with a Decedent’s Final Returnmanaging a Decedent’s Estate, preparing Trust Returns, and dealing with Life Estate Issues. These activities require advanced knowledge to ensure compliance and protect the rights of the estate, executor, trustee, and beneficiaries.

Multi-State Income Tax Filings -- All 50 states

We are experienced in multi-state tax filings for taxpayers that have income in a variety of states. State tax issues are often more complicated than federal tax problems and required advanced knowledge, training, and experience. Some of the taxpayers that benefit from our specialty tax service include:

  • Union Contractors from Hiring Halls
  • Transient workers
  • Specialty Contractors
  • Performing Artists, Cinematographers, and Sound Engineers
  • Traveling healthcare workers
  • Owners of out of state rental properties

PROACTIVE TAX PLANNING

A Key Element of a Specialty Tax Firm is “Tax Planning” – the act of understanding the relationship between tax law and financial decisions. We provide “Issue-Specific” and “Comprehensive” tax planning to help mitigate the tax consequences of financial transactions.

Issue-specific tax planning usually involves single issues, such as “Should I Covert my IRA to a Roth” or “What’s the best way for me to liquidate my assets to minimize the tax.” We meet with the client to understand the issue; research the issue and any questions; and follow up with a written response, model, or examples.

Comprehensive tax planning involves looking at the “big picture” and develop strategies to help the taxpayer meet their individual goals while maximizing deductions, credits, and loopholes. We meet with the client to understand their situation; research the issues and any questions; develop models to evaluate tax savings; produce a written plan with proven tax strategies, and assist with implementation.

Comprehensive Tax Planning often involves a review if the following elements

  • Entity Structure
  • Tax Deductions
  • Tax Credits
  • Legal Loopholes
  • Expense Reimbursement
  • Retirement Savings
  • Healthcare
  • Timing of Transactions
  • Documentation & Audit Proofing

REPRESENTATION

A key element of a Specialty Tax Firm is being able to defend items on the tax returns or elements of tax planning when challenged by the IRS. Representing Taxpayers requires being licensed as an Enrolled Agent, Attorney, or CPA. Enrolled Agents are licensed by the US Treasury to represent taxpayers in all 50 states. Attorneys and CPA are generally limited to practicing in the state that issued their license.

Representing Taxpayers requires knowledge of the law and IRS practice and procedure. Knowledge of the law helps protect the taxpayer’s rights, understand the requirements for proper treatment of a tax item, and how to defend taxpayer positions. Knowledge of IRS practice and procedure helps identify and predict inquiry, requirements, and responses of IRS employees. These are the rules the IRS is required to follow. When properly understood, these rules may be used to control almost any situation.

Tax law and authority include the Internal Revenue Code, Treasury Regulations, Revenue Rulings, Treasury Decisions, US Tax Court Cases, and higher court decisions. We also use other sources of lesser authority to help us understand IRS positions under certain facts and circumstances.

IRS practice and procedure involves understanding the “IRS Playbook” – The Internal Revenue Manual. The IRS also has a variety of “Policies” that define their mission, values, priorities, and deference that can often be used as a means to strengthen the taxpayer position.

Member, National Association of Enrolled Agents