Tax Blog

Are you receiving notices from the IRS?Do you owe federal or state taxes to the IRS?Do you have tax returns that haven’t been filed?Once the IRS zeroes in on you, you’re usually in store for a bumpy ride. Letters from the IRS are hard to understand and menacing. Fortunately, there are ways you can minimize and oftentimes eliminate the stress associated with resolving your tax situation.Did you know that IRS cannot legally contact you once you hire a representative?Instead of going to battle with the ... View

Nowadays, falling behind on your taxes is a very common occurrence, but ignoring your tax problems is not the answer.In most cases, back tax situations develop when tax returns are not filed on time. And when this happens, the IRS files your return for you, known as an Automated Substitute for Return (ASFR). This is done automatically, in their system, by a computer. And you can be sure you won’t get any mortgage deductions, child tax credits or property tax deductions. So when you receive a notice ... View

Has the IRS put a freeze on your bank account? Are you left with zero dollars in your wallet or purse, unable to pay for even the most basic necessities?You need immediate help, so you need to act fast!Bear in mind, bank levies don’t just happen overnight. The IRS has a very effective method of persuasion they call Enforced Collection Activity, which they will use to get your attention if you ignore their attempts to contact you regarding delinquent taxes. The bank levy will only be used after three ... View

Let’s face it, marriage is supposed to be “for better or for worse… ‘til death do us part”. But who wants to be held responsible for their spouse or former spouse’s tax debt or have their tax refund taken away from them? If this has happened to you, you may qualify for injured or innocent spouse relief. And to fix it, you’re going to need the help on an experienced tax professional.Injured Spouse Relief is an option when a spouse is not legally liable for the taxes owed by another spouse, ... View

If you have tax liability but are unable to pay it in full you may establish a payment plan, in IRS jargon called an Installment Agreement. There are several types of Installment Agreements, but before you can establish one you need to be in compliance, i.e. file all required tax returns and pay current year's estimated taxes.Guaranteed Installment AgreementYou can enter into Guaranteed Installment Agreement if you meet the following criteria:The aggregate amount of your tax liability without interest ... View

CAN YOU LIVE ON $200.00 A WEEK?If you owe taxes to the IRS and fail to respond to any of the IRS communications regarding repayment, be prepared to face a wage levy, a.k.a a wage garnishment, which is the IRS’ favorite way of getting your undivided attention. Garnishing wages is the weapon of choice that the agency can and will use from its arsenal of enforced collection. When the IRS sends out a Notice of Wage Garnishment to your job, it includes a chart that outlines to your employer exactly how ... View

What is IRS Tax Lien?In a nutshell, IRS Tax Liens are a last resort to force an individual or business to pay back taxes. In order to protect its interests, the government makes a legal claim against your property, including real estate and financial assets. Once a tax lien is filed, it shows up both on public records and credit reporting agencies, adversely affecting your credit score.Why does the IRS issue a tax lien?The IRS will first issue a Notice and Demand for Payment for the taxes owed, and next ... View

Mark Twain once said: "What is the difference between a taxidermist and a tax collector? The taxidermist takes only your skin." And when it comes to dealing with the IRS, even the thought of a tax audit or examination can be a terrifying ordeal.Audits can be frightening because they require you to explain where your money came from and justify the expenses and deductions you’ve claimed. However, the receipt of an IRS Audit Notice does not suggest there is a problem. In some instances, IRS audits can ... View

What is an Offer in Compromise? An Offer in Compromise (OIC) is a program offered by the IRS to taxpayers who are having trouble or are unable to pay their tax debt. Those who qualify are allowed to make an offer in compromise, which is an offer to pay a lesser amount than that which is owed. Who is qualified? An OIC is not available to everyone, taxpayers need to qualify in order to settle their tax liability for less. Although qualification was very difficult in the past, since 2012 the IRS ... View