How Back Taxes Can Impact Your Credit Score

It’s tax season, and we all know what that means. The time has once again come to figure out what you owe the IRS, and to cross your fingers that you get back something back if you’ve overpaid. While the process is often fairly straightforward, sometimes our tax debts are much higher than expected and we find ourselves falling behind on payments. When this occurs, the taxes that we owe are called back taxes. Back Read More

New Tax Act Changes What You May Deduct

The newly passed Tax Cuts and Jobs Act (TCJA) has made big changes to the items that may be deducted as itemized deductions. The TCJA has changed both what and how much is deductible for state and local income or sales taxes, property taxes on homes, home mortgage interest, charitable contributions, and more. The TCJA also raised the standard deduction in 2018 to $12,000 for single taxpayers and $24,000 for married Read More

How to Reduce Your Chances of an IRS Audit

The IRS can perform an audit of your taxes for a variety of reasons; sometimes it’s at random and other times it’s because of something specific on your tax return that isn’t matching up. Regardless of the reason, the idea of facing an IRS audit can be daunting—not only because it means you need to deal with more federal formalities, but also because it might mean that you did something wrong for which you could be Read More

Understanding Excise Taxes

For both business owners and consumers, taxes make buying and selling things expensive. It’s one of those facts of life. There are many different tax laws that have to be complied with at both the state and federal level, which sometimes makes it difficult to figure out how much things actually cost. As consumers, we’re most used to sales taxes calculated on the total cost of goods or services at checkout. But as a Read More

Reasonable Cause for Abatement of Penalties

One of the most common and costly problems taxpayers encounter is penalties and interest that the IRS can add onto original tax amounts. The IRS can impose penalties for filing your tax return late, paying your taxes after the due date, and failing to deposit estimated tax payments. If they are not paid, penalties and interest can double your IRS bill in about seven years. One way that you can get these penalties Read More

Facing an IRS Audit? Take These 3 Steps Immediately

Whenever you file your taxes, there is always that part of you that worries about getting audited. This is particularly true if you run a business, because your tax returns are often much more involved and require much more detail than if you are single person who only needs to file a 1040-EZ. So what should you do if you receive the dreaded audit notice from the IRS? What can you do to look better to the IRS during Read More

When the IRS Can Take Your Passport Away

Every year, thousands of people take trips to destinations outside of the United States, and the purpose of their journeys vary—business, an exotic vacation, a desire to explore the remnants of past cultures, an admiration for medieval architecture, a religious pilgrimage to a holy city, etc. Most international travel requires the use of a passport. While most people are aware that the IRS can levy bank accounts, Read More

Understanding Your Options if You’re in Debt to the IRS

Every year, there are a large number of people who can’t afford to pay the IRS all the tax debts that they owe. Even though the quickest solution for your overdue taxes is to pay the full amount right away, sometimes circumstances prevent that from happening. The unfortunate truth about IRS debts is that the interest will continue to accrue on what you owe, even as you pay it down, and the penalties don’t go away. Read More

Tax-related Identity Theft

Identity theft. For many of us, it is something really don’t know much about, but that we dread – knowing that it can wreak havoc on our lives.  Thankfully, our modern banking institutions are well-equipped to combat banking fraud, and we have many services that render help when our identities have been compromised. But what happens when you’re the victim of tax-related identity theft? In today’s blog, I will discuss Read More

What Does it Mean if the IRS Selects Me for an Audit?

The IRS has three years to audit tax returns. This means that you might not be in the clear even if it’s been a few years since you filed a tax return and you haven’t heard from the IRS. Generally, the IRS will audit an account if it finds a significant understatement of income. If it does, then it could look back even further than three years, though not by more than six. But what do you do if the IRS selects you Read More