Category: Tax Tips

IRS payments

How to Pay the IRS When You Owe Taxes

Many millions of individuals and businesses have to pay taxes. It’s about as inevitable as well…death and taxes. But how these taxes are paid will depend on several factors. For most taxpayers, taxes will be paid on a regular basis throughout the year, whether it’s from an automatic deduction from a paycheck or by making quarterly payments. But what happens when the taxpayer owes taxes that go beyond these regular payments, such as when there are back taxes owed? There are two common arrangements to choose from.

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kienitz tax offer in compromise

Offers in Compromise

What Is an Offer in Compromise?

If you’ve found yourself drawing the ire of the IRS due to unpaid tax debts, you might be wondering what your options are. Well, one of the most enticing is the offer in compromise, or OIC.  This allows you to potentially satisfy your tax debt for less than what you fully owe. Sounds like a good deal, doesn’t it? It is if you can get it, as the IRS has the right to reject a taxpayer’s OIC.

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kienitz tax levy

Getting Rid of an IRS Lien or Levy

The threat of an audit is a powerful deterrent and does a good job of motivating taxpayers to pay the IRS what they owe. But sometimes this isn’t enough and taxpayers still forego their legal duty to pay their tax obligation. When this happens, the IRS will reach out to the taxpayer to collect an outstanding tax debt. But when asking nicely doesn’t work, the IRS can impose a tax lien and/or a levy.

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kienitz tax law tax prep

Tax Prep Guide

Tax season is about to start, which means it’s that time of year where you need to be on the lookout for tax documents such as W-2s and 1099s. But what other documents and information do you need to have ready to complete your tax return over the next few months? That precise answer depends on your unique tax situation, but the following guide will provide a good overview of what you might need to have ready when you or your tax preparer files your tax return this year.

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tax scams

Tax Scam Trends

Those who have read Lewis Carroll’s, Through the Looking Glass, may recall the Red Queen. This character explains to Alice that she must run as fast as she can merely to stay in one place. This is the origin of the Red Queen Hypothesis, which theorizes that living things adapt and evolve, not to gain an evolutionary advantage, but to survive. In other words, evolution doesn’t improve a species’ chances of survival, but prevents it from going extinct. Continue reading “Tax Scam Trends”

tax audit irs

IRS Tax Audits

One of the things that keep many of us from going too far in our attempts to reduce what we owe Uncle Sam is the fear of a tax audit. In most situations, the audit process isn’t as scary as most people fear, especially if there is nothing to hide. The following blog post will provide an overview of the audit process and explain certain steps you can take to reduce the chances of being an audit victim. Continue reading “IRS Tax Audits”

kienitz tax law identity theft

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”

kienitz tax law payment plan

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”