Tag: IRS problems

Who Should File a Tax Return: Explained by Nick Nemeth

Whether you are required to file the income tax return depends on a number of factors such as your income, filing status, age, and dependency. Sometimes, even if you are not required to file a tax return, it may still be in your best interest to file the return. If you are wondering why, Nick Nemeth talks about five reasons why it still makes sense to file income tax return even if you think you do not owe any tax to the government. Take a look. 1. Extra Income Tax Withheld The Federal tax system authorizes employers to withhold some

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Understanding IRS Tax Levies and How to Stop Them

A tax levy is one of the most destructive collection tools used by the IRS, which involves legal seizure of taxpayers’ assets against outstanding tax bills. A tax levy should, however, not to be confused with a tax lien. A tax lien is only a claim made against taxpayers asset, whereas a tax levy is the legal seizure of the assets. If you have any unpaid tax bill, the tax authority can levy your bank accounts, financial belongings, investment accounts, wages, pension, insurance policies,  and even physical assets to satisfy a tax debt. The post outlines various types of tax

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Understanding IRS’ First-Time Penalty Abatement Policy

Tax Abatement Policy - with Nick Nemeth

Not many people know that if the IRS charges you or your business with additional penalties and interests, you can request the IRS for tax abatement. Individuals and business taxpayers can request an FTA (First-time penalty Abatement) for failure-to-file, failure-to-pay, and/or failure-to-deposit penalties for a single tax period. It is, however, important to prove a reasonable cause for the failure to compliance with the tax law.  An FTA was introduced to help first-time defaulters to have a clean compliance history. Continuing the discussion, the post provides basic knowledge to help you resolve IRS problems and get your tax penalties or

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