As long as there are telephones, there will be people trying to use them to steal money from others. And given the power and fear the IRS strikes into many Americans, it’s no wonder the many telephone scammers decide to use the IRS as the basis for their scams. The following is an explanation of some of these more common IRS telephone scams and what can be done to help you or others from falling victim to them. Continue reading “Telephone Tax Scams”
Author: Kienitz Tax Law
The IRS’s Ability to Seize Assets
When a taxpayer has an unpaid tax debt, the IRS has several tools at its disposable to collect the taxes it’s owed. One of these tools is a levy, which is the taking of the taxpayer’s property and assets. The IRS will then use the property to pay off the taxpayer’s debt. But before the tax collection process gets to that point, a few things must happen first.
Paying the Self-Employment Tax
Wouldn’t it be nice to be your own boss? You’d get to set your own hours, decide what work to take on and do only what you want to do. While you may be able to avoid someone else telling you what to do as a self-employed individual, you can’t avoid paying your taxes. In fact, self-employed individuals often have to pay more in taxes than someone who is a W-2 wage earner. This additional tax burden is called the self-employment tax.
The IRS Appeals Process
The IRS may make a number of decisions concerning a taxpayer’s taxes which a taxpayer may understandably disagree with. When this occurs, there are two primary paths a taxpayer can take to change the IRS decision: file an appeal with the IRS Office of Appeals or start a lawsuit in Tax Court. This post will focus on the appeals process.
Consider These Four Year-End Tax Tips
The end of the calendar year offers a unique moment to save money on your taxes. Depending on your financial situation, you can take steps before January 1st and possibly reduce the taxes you’ll owe. Continue reading “Consider These Four Year-End Tax Tips”
Identity Theft & Your Tax Information
The information required to prepare and file taxes is substantial. On an individual return, a full name, social security number, address and phone number are typically required. Then there are supporting documents that are either included with the return or are used to prepare the return. These include W-2 Forms, 1099 Forms and any other relevant documents, such as donation receipts. Continue reading “Identity Theft & Your Tax Information”
IRS Tax Payment Plan Overview
If you’re behind on your taxes, it’s only a matter of time before the IRS sends a letter informing you of your tax debt and the additional money you own in interest and penalties. But for most taxpayers, it’s impossible to pay off their tax debt quickly. After all, if they had the cash to pay off their tax debt, their tax debt probably wouldn’t exist in the first place. Continue reading “IRS Tax Payment Plan Overview”
How to Stop Wage Garnishment
When a taxpayer fails to pay taxes and the IRS’ initial efforts to collect the back taxes are unsuccessful, the IRS can take money directly from the taxpayer’s paycheck. This is commonly referred to as wage garnishment, although sometimes it may be called a wage levy. Wage garnishment is one of the more severe methods the IRS can rely on to collect back taxes and it’s not easy to stop, but taxpayers have a few options to consider.
Phishing Tax Scams
We’ve previously written about tax scams, especially those involving the telephone. However, scams involving the telephone aren’t the only ones taxpayers need to be aware of. Another common scam, called phishing, uses e-mails and websites.
What Is an IRS Offer In Compromise?
Perhaps you’ve seen or heard the television ads, where an individual claims to have their IRS tax debt settled for significantly less than what they owe. How is this possible? Through something called an offer in compromise, or OIC. But what is it and how does it work?