Category: Blog

“Seriously Delinquent” Tax Debts May Impede Your Travel Plans

"Seriously Delinquent" Tax Debts May Impede Your Travel Plans






The world has gone global, and American citizens travel frequently to various parts of the world. When traveling abroad, carrying a valid passport as a proof of US citizenship is essential for routine activities such as foreign exchange transactions or checking into your hotel. It may come as a surprise, but if you have a ‘seriously delinquent tax debt’, you may have to put your travel plans on the back burner. The number of IRS tax defaulters is increasing sharply, and many of them are still unaware of the fact that their unpaid debts can jeopardize their travel plans. In

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Tax Basics: Know Your Way Around Payroll Taxes

Know Your Way Around Payroll Taxes






So many companies are downsizing, shrinking staff, declaring bankruptcy, or shutting down completely. The most common reason is failure to pay or settle their payroll taxes. Payroll taxes, also known as employment taxes, and frequently referred to as 941 taxes, are State and Federal taxes imposed on employers on behalf of their employees. Many cash-strapped companies, including start-ups and big corporations, fail to pay their payroll taxes when due. State and federal tax authorities typically do not come to the doorstep demanding money; they wait until the company accumulates cash to settle the debt. Unfortunately, when profits don’t rise and

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5 FAQs about Flexible Spending Accounts Answered

Flexible Spending Accounts






Every year, the IRS reminds eligible employees to take advantage of their employer’s health flexible spending arrangement. Flexible Spending Accounts, or FSA for short, are special accounts where employees can deposit money to pay for their medical expenses that are not covered under other health plans. Interested employees need to decide the amount they want to contribute and inform their employer before the beginning of the next plan year. In this brief post, we will look at 5 commonly asked questions about FSAs and their answers. 1. Are the contributions to the FSA tax-free? Yes, the amount that goes into

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7 Useful Guidelines to Qualify for an Offer-In-Compromise

7 Useful Guidelines to Qualify for an Offer-In-Compromise






What is an Offer in Compromise? THe basic idea is that if you owe taxes, penalties and interest that you really can’t pay because you simply don’t have the assets or income to cover what you owe, then you may be able to settle with the IRS for less. Unfortunately, many struggling taxpayers are unable to leverage this option, as their request gets turned down by the IRS, for a variety of reasons. So, when it comes to filing an offer in compromise, applicants must take every possible precautionary step that may minimize the risk of rejection. To help, here

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Turned 70 This Year? Know What the IRS Wants You To Do

Know What the IRS Wants You To Do






Every year, many retirees receive retirement funds that go into their IRA, SIMPLE IRA, SEP IRA, or retirement plan accounts. The funds that go into these accounts can stay unused until the retirees reach the age of 70½. Once they reach this age, however, they are required to withdraw a minimum amount every year, known as the “Required Minimum Distribution”, or RMD for short. Let’s take a closer look at what changes for those who cross this age threshold. RMD and Applicable Tax Liability Though the amount withdrawn is included in your taxable income, it may be partially or fully

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Stay Clear of IRS Tax Scams in the US: Here’s How

Stay Clear of IRS Tax Scams in the US






No matter whether we talk about Dallas, Texas or Washington DC, every year, thousands of American taxpayers are conned by crooks masquerading as IRS agents demanding tax payments. The Treasury Inspector General for Taxpayer Administration (TIGTA) has so far received more than 20,000 fraud complaints in which taxpayers lost more than $1 million. Numerous phone scams have also hit unsuspecting taxpayers in almost every state in America. In these scams, an individual makes a phone call to a taxpayer, claiming to be an IRS official and demanding tax payments. The calls are mostly made during the tax filing season. Considering

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Understanding Offer in Compromise and the Need for a Tax Lawyer’s Help

Understanding Offer in Compromise






An IRS tax lawyer helps you to settle a tax liability by facilitating an agreement with the government, and may also get you a waiver on the total outstanding amount. This is usually implemented when the possibility of being able to collect the entire tax liability seems bleak. In such cases, the government tries to extract what is easily collectible, at the earliest possible time and incurring the least costs associated with the recovery process. Qualification for an Offer in Compromise Although an IRS lawyer is the best person to tell you whether or not your issue qualifies for an

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3 Things to Consider During Marketplace Open Enrollment

Marketplace Open Enrollment






Open Enrollment Period is the period of the year in which US citizens can enroll in a health insurance plan. The enrollment period for calendar year 2016, is November 1, 2015, to January 31, 2016. Failure to enroll, also as minimum essential coverage (MEC) during this period, may result in a penalty. Exceptions may apply if the insured qualifies for the Special Enrollment Period, or else they are not eligible to enroll for a health insurance plan in 2016. Let us take a look at three important tax considerations one must pay heed to at the time of marketplace open

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Worried About The IRS? Know Your Bill of Rights – Part 1

Worried About The IRS? Know Your Bill of Rights






Most taxpayers in the US lack knowledge about the inner workings of the IRS, which results in a palpable fear of IRS audits and various doubts about the intentions of the taxman. This is the reason why there are many taxpayers who claim to have been harassed by the IRS. All these feelings of animosity and discomfort do not manifest, if taxpayers are cognizant of the fact that the IRS is an organization that works for the nation and its taxpayers, and will under no circumstance compromise the latter’s interests. In fact, until 2014, the IRS offered its version of

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IRS More Willing to Compromise Than Ever

IRS More Willing to Compromise Than Ever






In 2011, the IRS began to implement a series of policy changes known as the “Fresh Start” initiative. What does that mean to the ordinary taxpayer? Basically, the intent of the initiative is to make it easier for taxpayers to pay back taxes, avoid IRS liens, and get tax relief through an installment agreement. The threshold for filing a tax lien went from $5,000 to $10,000, except in certain cases. It’s also easier to remove a lien from your credit report once it has been released, (paid in full). In the past, a lien would stay on your credit report

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