All You Need to Know About Tax Audits

All You Need to Know About Tax Audits

The simple mention of an IRS investigation or audit can disturb even the most honest taxpayers. Even if you have done your best to get your taxes right, you may still find yourself facing an IRS audit. If you ever find yourself in such a situation, it is important to understand the process as well as know your rights, responsibilities, and what you need to do if you are accused of any wrongdoing. In this blog post, we discuss all you need to know about IRS audits. Read on. An Audit is Not an Accusation It is important to understand

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Common Consequences of IRS Debt

Serious consequences of IRS debt

It may feel tempting to ignore tax debts but the IRS can eventually force you to pay using various tools such as liens, levies, and wage garnishments. Ignoring your tax debts can lead to serious consequences. The good news is that with professional IRS debt help, you can apply for IRS debt relief options such as a simple extension of the time you have to pay or entering into a monthly payment plan. In this blog post, we will discuss some common yet serious consequences of ignoring IRS debt. Suspended Tax Refunds This is the first action taken by the

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A Look at the New 2021 Income Tax Brackets

Income Tax Brackets for year 2021

The 2021 tax season is here and now is the time you start planning your taxes. For Texas residents, the filing deadline for your 2020 federal tax return is now Tuesday June 15, 2021. You should plan your taxes in advance to avoid the rush during the last days and prevent potentially costly mistakes. It also remains important to stay updated about any changes to the tax code or tax guidelines, so that you do not attract unwanted attention from the IRS. A progressive tax bracket means that you pay a set tax rate for a specific range of income.

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5 Ways to Handle Unpaid Payroll Taxes

5 Ways to Handle Unpaid Payroll Taxes

Back payroll taxes to the IRS can land you and your business in some huge problems. The IRS considers unpaid payroll taxes serious business and ignoring them can put you and your business in great jeopardy. The government agency will take every action possible to recover the outstanding amount including taking legal action against you and your business. The result can be imprisonment, hefty fines, and, in the worst case scenario, you can lose your business entirely. To avoid such a situation, you need to address unpaid payroll taxes immediately. Here are several ways you can successfully handle unpaid payroll

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What You Need to Know about the 2021 Tax Season

What You Need to Know about the 2021 Tax Season

Given that the world has taken a massive hit from the coronavirus, a lot has changed for the 2021 tax season. As always, it remains important to keep abreast with any changes to the tax code or filing guidelines so as not to fall aowl of the IRS. The tax day this year is Tuesday June 15, 2021, and it is recommended that you file your 2020 tax return by then. An IRS tax attorney can help you with all your filing requirements including things such as IRS installment agreement. Let’s have a look at everything you need to know

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Understanding the Impact of Biden’s Stimulus Proposals on Tax Credits for Families

Understanding the Impact of Biden's Stimulus Proposals on Tax Credits for Families

According to a report by The Washington Post, President Biden’s $1.9 trillion economic relief package provides approximately $3,000 per child to American families. Under the proposal, the IRS will provide for a credit of $3,600 per child under the age of six and $3,000 per child between the ages six to 17 over a year. The proposal increases the annual income of average Americans to more than $75,000, and for couples with joint income to more than $150,000. This will not only provide immense cash benefits to American families, but also help them cope with IRS problems by giving them

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A Look at Penalty Relief Due to Reasonable Cause

penalty relief due to reasonable cause

Sometimes the IRS sends penalty notices to taxpayers who fail to honor their tax obligations. Notices generally contain information relating to IRS penalties and interests, the amount of IRS penalty interest, and the amount of tax owed. Affected taxpayers can request IRS penalty abatement on the basis of a reasonable cause that is based on all the circumstances and facts around their situation. The IRS will consider abatement of penalties and interests for any reason that establishes that a taxpayer used all ordinary business prudence to meet their federal tax obligations but was unable to do so. Continuing on the

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All You Need to Know about Requesting an IRS Appeal

IRS appeal letter

There are many instances where taxpayers may feel the need to request an IRS appeal to resolve any tax disputes with the IRS. The IRS may include wrong facts on a notice, deny an offer in compromise request, or take inappropriate collection action against a taxpayer. Whatever the reason, if a taxpayer disagrees with the decision, they can reach out to the IRS office of appeals by filing a written protest and mailing it to the address mentioned on the notice explaining their appeal rights. Before contacting the IRS office of appeals, a taxpayer can boost chances of getting a

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Answering Top 5 Frequently Asked Questions about Unfiled Tax Returns

faqs about unfiled tax returns

Taxpayers are required by law to file their tax return for the year in which there is a filing requirement. Most taxpayers file their tax returns on time voluntarily but there are times when some fail to file their returns or pay their taxes. There can be many reasons for not-filing taxes but unfortunately, not filing can create serious problems for taxpayers. Failing to file your tax returns can be costly in terms of potential penalties and missing out on any refunds. Let’s look at answers to 5 commonly asked questions about unfiled tax returns. What happens if I ignore

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Understanding how the IRS Initiates Criminal Investigations

criminal investigations on taxpayers

The Criminal Investigation Division of the Internal Revenue Service conducts criminal investigations on taxpayers if they commit tax evasion or allegedly violate the Bank Secrecy Act, the Internal Revenue Code, and various money laundering statutes. If a taxpayer has committed tax evasion, the IRS can prosecute within six years, but if they have committed tax fraud, the IRS has unlimited time to prosecute the case. Continuing on the topic, in this blog post, we take a closer look at how the IRS initiates criminal investigations. Read on! IRS Special Agents Criminal investigations are initiated from information obtained from IRS revenue

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