You may have heard those commercials about settling a tax debt for pennies on the dollar. It sounds too good to be true, but is it? Yes and no. While it’s possible to significantly reduce your tax debt with the IRS, you’re probably not going to be able to pay pennies on the dollar. The following blog post intends to explain what the offer in compromise (OIC) is and help you determine if it’s something you should consider. Continue reading “Using an Offer in Compromise to Settle Your Tax Debt”
What’s worse than filing your taxes? Finding out you have an unexpected tax bill due. And what could be worse than a surprise tax bill? Having the IRS place a lien or levy on your property. But why are tax liens and levies so bad? Read on to find out.
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”
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”
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.
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 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.
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”
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 “Prevent Your Tax Information from Being Used for Identity Theft”
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”