Category: Blog

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

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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IRS Tax Return Audit: All You Need to Know

IRS Tax Return Audit

Taxpayers who fail to sub their taxes deter the country’s growth, marginalizing the inputs of a large number of fellow citizens who pay their taxes on time. The IRS therefore, must address and take actions on all cases of non-compliance. Among others, conducting a tax audit is one sure way of identifying defaulters; although it must be remembered that the selection of a tax return for examination does not necessarily imply that the taxpayer has defaulted or has been dishonest at the time of filing. More often than not, tax returns are randomly picked for audit and the purpose of

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Employee Shared Responsibility Provisions: An Overview

Employee Shared Responsibility Provisions

Employer shared responsibility provision, also known as “the pay or play provision” or “the employer mandate”, came into effect on 1st January, 2015. Under the provision, all Applicable Large Employers (employing 50 or more full time employees), also known as ALEs, are required to either pay their employer shared responsibility (ESR) dues to the IRS, or provide an essential coverage that is “affordable” and offers the “minimum value” applicable, to their full-time employees and their dependents. Who is an Applicable Large Employer? Employers are assessed and qualified as an ALE depending on the number of full time employees working for

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Received 5591, 5591A or 5596 Letter from IRS? Here’s What to Do.

Received 5591, 5591A or 5596 Letter from IRS?

Every year, the IRS sends a large number of reminders in the form of letters (numbered 5591, 5591A, or 5596) to taxpayers who received discounts on their health insurance premiums, but failed to file their tax return along with Form 8962. The purpose of this form is to reconcile the Advance Premium Tax Credit (APTC) with your Premium Tax Credit (PTC). This post is designed to help you understand what APTC and PTC are and why the IRS sends letters 5591, 5591A or 5596. Premium Tax Credit (PTC) A PTC is financial assistance given to taxpayers who enroll or whose

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How Does the IRS Select Tax Returns for Audit?

Many of our clients feel as though they have an IRS target on their back.  Once the IRS has them in their sights they begin to attack and won’t let up.  Why do some taxpayers have to go through this year after year?  This post gives insight how the IRS selects individuals and companies for audit. The IRS uses a variety of methods to select returns for review: One of the ways the IRS selects tax returns for audit is by obtaining information about individuals or companies that promote or participate in tax avoidance transactions. One typical example of these transactions

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Education Credit: All You Need to Know

Education credit enables people to afford the increasing costs of higher education by reducing the amount of tax owed on their overall tax return. If you’re paying for higher education, the US government grants you aid in the form of an education credit that reduces your tax liability. In other words, the education credits that you receive are adjusted against the tax you owe to the IRS. The best part is that if the credit you receive reduces your tax liability to less than zero, you become eligible for a partial refund, provided you fulfill other requirements. Types of Education

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Tax Exemption on Home Sale Gains: FAQs

Tax Exemption on Home Sale Gains

Whether large or small, tax exemptions are a welcomed relief for taxpayers. Ironically, many people are either unable or unaware of the tax exemptions that may apply to them, and miss the chance to take advantage of these savings. In this blog post, we’ll answer some of the most commonly asked questions about one benefit in particular: home sale gains. Let’s look at the tax exemption gains driven by the sale of a house. 1. What are the requirements? To be eligible for a partial or full tax exemption on the gains from the sale of your home, you must

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