Understanding the Basics of IRS Penalty Abatement

About IRS Penalty Abatement
Federal tax penalties are one of the most widely used tools deployed by the IRS on taxpayers that fail to file/pay their tax returns. According to the IRS, FY 2021 observed a massive $37.3 billion collected in civil penalties. Federal tax penalties can be problematic for taxpayers as they accumulate interest over time, aggravating the situation with the potential to push taxpayers towards bankruptcy. An IRS tax attorney can help you request an IRS tax penalty waiver or penalty abatement to reclaim your financial health. Continuing on the topic, read on as we discuss the ins and outs of IRS

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What to Do if You Get a Reduced Refund

All About Tax Return
If you have received a reduced refund from the Internal Revenue Service (IRS), chances are you are confused about why this happened in the first place. Generally, if you receive a reduced refund, the IRS itself or a Financial Management Service (FMS) is behind the move. The refund is generally received to cover overdue child support, unpaid federal agency non-tax bills, unpaid state income taxes, or unpaid state unemployment compensation debts. In case any organization filed a claim against your debt, an FMS will deduct the necessary amount from your refund to settle the claim. You will receive the balance

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All You Need to Know About Federal State Local Employment Tax (FSLET) Examinations and Compliance Checks

All About Federal State Local Employment Tax
Employers must adhere to several obligations under the Tax Code, one of which is timely compliance with various taxation protocols such as calculating taxes to be filed and making appropriate deductions from employees’ paychecks, filing tax returns, and making timely payments. One such tax is the Federal State Local Employment tax (FSLET). When it comes to federal taxes, timely filing & paying, and maintaining transparency with the IRS are the best way to attain full compliance. Any discrepancies can lead to an IRS tax investigation. Continuing on the topic, let’s look at a comprehensive guide to FSLET. Which type of

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A Look at the IRS’ Operation Hidden Treasure

IRS' Operation Hidden Treasure
The Internal Revenue Service (IRS) is always on the hunt for new tax revenue sources. This time, the tax regulation agency has turned its attention on taxpayers who under-report their crypto-related transactions. It has been a difficult time for cryptocurrency lately. While larger investors wait anxiously, some smaller players have even lost their life savings. Amid all these financial concerns, the IRS is quietly pursuing Operation Hidden Treasure. If you have been investing in crypto, it is important to regularize your affairs and seek IRS debt relief, if required. Hiring an experienced Dallas tax attorney is the best way to

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Can You Buy a House While Owing the IRS?

About Owe Taxes

Homeownership ranks among the top aspirations for people all over the world. A massive 35% of Americans are either renting, living with family, or homeless. IRS tax problems can be an impediment for people looking to buy a house due to a fear that it may be forfeited to the government agency. One IRS tax problem that affects many taxpayers is that of unpaid taxes. In this blog, we explore whether it is possible to buy a house while owing the IRS.  Is it possible to buy a house while owing taxes? It is possible to buy a house while

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What You Need to Know as a High-Income Non-Filer

High-Income Non-Filer

The American income tax system is based on the idea of voluntary compliance. The Internal Revenue Service (IRS) promotes trust in the tax system and legal compliance through its civil and criminal enforcement initiatives. Reducing the tax gap, or the anticipated difference between the amount of tax that taxpayers should pay, and the amount voluntarily collected, is one of the IRS’s goals in its enforcement approach. Keep reading if you earn upwards of $100,000 or more each year and have one or more unfiled tax returns. IRS initiatives to boost collection from high-income non-filers According to a report by the

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Understanding Tax Compliance

IRS Tax Laws

Ensuring compliance with tax laws is unarguably one of the most challenging things taxpayers (both individuals and businesses) have to deal with, although it is all the more difficult for businesses. That’s because businesses are not only required to ensure compliance with federal tax laws, but they must also comply with state and local tax laws. And on top of that, the laws keep changing on a frequent basis. This adds to the misery of the taxpayer, who has to keep up with the changes or run the risk of incurring huge penalties. The worst part is that despite the

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A Closer Look at the Inflation Reduction Act Tax Provisions

Inflation Reduction Act

This year, the IRA (Inflation Reduction Act) replaced the House-passed “Build Back Better Act” of late 2021, with the aim to, among other things, lower the nation’s debilitating inflation. As the act becomes mainstream, average taxpayers may get confused regarding what they owe to the Internal Revenue Service (IRS). That is why consultation with an experienced IRS tax attorney is important. If you are a resident of Dallas – Fort Worth, you have easy access to the best IRS attorneys in Dallas – Fort Worth, TX. In this blog, we take a closer look at the Inflation Reduction Act tax

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A Concise Guide to Paying Back Taxes

How to get rid of back taxes

Back taxes can be the stuff of nightmares as they can trigger severe tax collection processes, including liens, wage garnishments, and levies. While the IRS recommends clearing back taxes at the earliest, you may also opt for provisions that are available under the Fresh Start Initiative (FSI). One of the provisions is the IRS offer in compromise (OIC), which is a monetary concession that allows the IRS and taxpayers to settle unpaid dues for less than what is owed. Requesting for an OIC requires taxpayers to comply with intricate eligibility criteria, which is why it is advisable to consult a

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Wage Cap For Social Security Payroll Taxes Revised Upwards for 2022

Social Security Payroll Taxes

Social Security taxes are paid by both employees and employers on income up to an annual cap, commonly referred to as maximum taxable earnings. Based on changes in the annual National Average Wage Index, every year, the federal government raises the Social Security threshold to keep up with inflation. In this blog, we will discuss some recent changes to IRS payroll taxes. Changes in Social Security Payroll Taxes in 2022 The maximum earnings subject to the Social Security payroll tax increased to $147,000 on January 1, 2022, up from $142,800 for 2021, a $4,200 increase. Over the last five years,

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