Category: Blog

Does a Payment Plan Stop Penalties and Interest?

Does a Payment Plan Stop Penalties and Interest

Taxpayers should pay their taxes as soon as possible to stop accumulating penalties and interest and reduce chances of being the subject of an IRS tax investigation. In case you can’t pay your taxes, you should consider entering into an installment agreement. You can also get relief from late tax penalties if you tried to comply with the legal requirements but failed to meet your tax obligations due to unfortunate and uncontrollable circumstances. There are instances when taxpayers receive a notice from the IRS with incorrect information. In such circumstances, they should talk to a tax resolution attorney and try

Read the full article…

5 Common IRS-Related Problems Everyone Should Know

A Guide to Common IRS Related Problems

Taxation related issues may seem trivial on face value but they can snowball into serious problems if kept unchecked and not resolved. Even a first time instance or an unintentional mistake is good enough to get the IRS involved, putting your bank accounts, pay-checks, and even liquid assets under the threat of being investigated and/or seized. That is why you must always be in a position to make informed decisions. While professional consultation and assistance is always recommended in tax matters, it still helps to learn and understand IRS matters for yourself. In this blog, we take a closer look

Read the full article…

A Guide to Filing Unfiled Tax Returns

According to Forbes, about 7 million people in the USA fail to file their tax returns each year. The IRS, as a part of its National Research Program, released a study in 2011 that indicted government losses of up to $28 billion per year as a result of non-filing. These huge losses force the IRS to impose heavy penalties for unfiled tax returns. That is why it is advisable for every taxpayer to know how to navigate unfiled taxes. To help, let’s discuss everything you need to know about filing unfiled tax returns and the penalties for failing to do

Read the full article…

5 Types of IRS Installment Agreement to Pay Your Tax Debt

About Self-Employment Tax

The IRS offers installment payment plans to taxpayers whose tax bill is too hefty for a single payment. Under this plan, taxpayers can spread their payments over several months to make the bill more manageable. If individuals don’t pay such installments on time, the IRS may seize their property, place liens against their assets, and even garnish their wages. After approving a payment plan, the IRS will charge the taxpayer some extra fees. Taxpayers who qualify for a short-term payment plan are not required to pay such a fee. Continuing on the subject, let’s look at five types of IRS

Read the full article…

Key Takeaways from the Latest IRS Updates in the Wake of COVID-19

Facts about IRS Payment Plans

Given the surge in Covid-19 cases, the IRS continues to remind tax professionals and taxpayers to use electronic options to speed the processing of tax returns, payments, and refunds. In compliance with the instructions of local health authorities around the country, certain IRS services, which include processing paper tax returns, live assistance on telephones, and responding to correspondence, continue to be extremely limited. While most departments are operating at a reduced capacity, you can always call your IRS tax attorney for help in critical issues or visit volunteer tax preparation sites like IRS.gov/coronavirus which have continued to guide taxpayers through

Read the full article…

Effect of the COVID-19 Pandemic on IRS Tax Problems

Coronavirus impact on IRS Tax Problems

COVID-19 has caused significant operational bottlenecks in most organizations across the world, and the same has been true for the IRS as well. With 70 million taxpayers filing their returns for 2020 and about 70,000 employees working from home, the nation’s tax administration is in the middle of a perfect storm. Besides, the agency is handling the other important job of distributing stimulus payments with the passage of the CARES Act and other COVID-19 assistance laws. Taxpayers dealing with IRS problems can greatly benefit by reaching out to a trusted IRS tax attorney to better manage their tax problems. Continuing

Read the full article…

Lesser Knowns Facts about IRS Debt Relief

The Truth About IRS Debt Relief

According to a survey conducted in 2013, Pew Research found that 51 percent of Americans have unfavorable views of the Internal Revenue Service as it ranked it at the bottom of the list in terms of public performances and perception. There are only a few who appreciate IRS debt relief and refund policies that help countless people to overcome their tax woes. Continuing on the topic, in this blog post, we discuss a few lesser-known facts about the IRS relating to debt relief that everyone should know. Read on. Tax Relief Options The IRS has many provisions for taxpayers to

Read the full article…

Here’s What You Need to Know Before Seeking Tax Lien Assistance

Know About IRS Tax Settlement Firms

The IRS uses a tax lien to claim against the taxpayer’s property or assets if they fail to pay their taxes on time for a certain period. IRS tax liens can adversely impact the taxpayer’s credit history and create hindrances while securing any other credit in the future. Before establishing a tax lien, the government will file a public document: Notice of Federal Tax Lien, to warn taxpayers about the government’s legal right to their property. After receiving the notice, creditors should either pay their back debts immediately or seek tax lien assistance for opting one of the legal procedures

Read the full article…

COVID-19 Related Scams You Must Avoid

Tips to Identify and Avoid COVID-19 Scams

A recent report revealed that the IRS Criminal Investigation Division (CI) has witnessed a variety of Economic Impact Payment (EIP) scams and financial schemes decreeing to take advantage of many unsuspecting taxpayers. Scams related to COVID-19 aren’t just limited to stealing EIPs from taxpayers, they have extended to selling fake at-home test kits, cures, vaccines, pills, and advice on unproven treatments for COVID-19. To help you stay informed and steer you clear from such troubles, we discuss the three most common scams you should watch out for. Read on. Related Blog: Basic Guide to File Your Tax Returns 1. Scams

Read the full article…

All You Need To Know About Self-Employment Tax

About Self-Employment Tax

The federal government, in 1935, passed the Federal Insurance Contribution Act (FICA), which established taxes to help fund Medicare and Social Security. The FICA tax is 15.3 percent, paid by employees and employers, who split the burden into half each by paying 7.65 percent. In 1954, the government passed a Self-Employed Contributions Act (SECA) to ensure that freelancers contribute towards Social Security and Medicare. The act established that these individuals would pay the whole 15.3 percent without any other party splitting the burden. This tax is known as the SECA or self-employment tax. Although this difference might seem significant, individuals

Read the full article…