Unlike other debts, a tax debt is one of the hardest debts to deal with. One reason why tax debts are so debilitating is that the tax collecting entities, such as the Internal Revenue Service (IRS) and the California Franchise Tax Board (FTB), can take money directly from a taxpayer’s paycheck. This is often referred to as a wage garnishment or a wage levy.Continue reading “How to Stop IRS and California Tax Garnishment?”
Scams aren’t new, having been around for a long time, with some well-known ones occurring back in the 1800s. But phishing scams are a bit more recent, because they’re based on the use of electronic communication. Because one of the best ways to defeat a confidence scheme (such as phishing), is to be able to recognize it, fraudsters are constantly thinking up new scams to confuse and trick potential victims. But before we go over a new scam, let’s discuss what phishing is.Continue reading “Phishing Scams and What to Do”
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.Continue reading “Offers in Compromise”
After the tax audit, tax liens and levies are some of the most dreaded actions the IRS can take against a taxpayer. One of the reasons they’re so feared is because they’re not very well understood by most people. Well, we’re going to try and change that by shedding some light on these tax collection tools used by the IRS, including how to avoid becoming subject to them.Continue reading “Tax Liens and Levies’ Ins and Outs”
One of the hallmarks of our country is the concept of due process. This refers to following the law when a government takes action against an individual. And if there is ever a time when the government takes action against an individual, it’s when they’re taking the individual’s money.Continue reading “Appealing an IRS Decision”
When it comes to scams, they’re almost as inevitable as taxes. The only thing that changes is how the scams work. As taxpayers catch on to existing tax scams, con people look for different ways to trick their victims. Below we identify two of the newer tax scams that many taxpayers may not have seen before.Continue reading “Current Tax Scams of 2019”
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.Continue reading “Getting Rid of an IRS Lien or Levy”
The Tax Cut and Jobs Act made significant changes to the tax code and eliminated or diminished many tax breaks for the average person. It did this in several ways, including reducing deductions for property, state and local taxes as well as eliminating personal exemptions. Despite these changes, there are still many tax breaks that most people can still take advantage of. Below is a list of just a handful of them.
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.
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”