Worried About the Collection Statute Expiration Date Coming Up?

Plenty of U.S. taxpayers are unaware that it is possible to run out the clock on the IRS. In most cases where a taxpayer has an unpaid debt to the IRS, the slate will be wiped clean in 10 years. The date after which the IRS will no longer be able to collect a tax debt is the Collection Statute Expiration Date (CSED) for that liability.  The clock starts ticking on the CSED when an action has been taken to assess Read More

Where is my Revenue Officer?

Anyone who has tried calling the IRS recently probably did not reach a human being. This ongoing problem worsened not long after the U.S. declared the COVID-19 pandemic a national emergency in March 2020. Even though it is business as usual in many parts of the country, IRS employees are working through a sizable backlog of paperwork and requests.  These frustrations are quite salient for taxpayers whose IRS Read More

How To Reduce Your Monthly Payments to the IRS

Do you owe the IRS, and want to pay the debt in monthly payments? If you can fully pay the amount owed in six years (and up to ten years in some situations) it may be a straightforward process. But what if you cannot afford to pay that much? If these situations the IRS may approve a Partial Payment Installment Agreement. The IRS will look at your income and your monthly living expenses to determine your ability to Read More

5 Recordkeeping Tips for Freelancers and Side Hustlers

We’re all living in the gig economy, which has its advantages and disadvantages. It’s easier than ever to start a reliable stream of income to complement your bi-monthly paycheck. Maybe you already dove headfirst into your sole proprietorship.  Regardless, the IRS wants to know certain details about your freelance income. It mainly wants to know who paid you—and how much. Unlike a W-2 job, there is no one else to Read More

IRS Using Unique Tool to Catch Alleged Crypto Cheats

All signs are pointing to a more aggressive posture by the IRS when it comes to investigating and prosecuting those who aren’t reporting their cryptocurrency transactions in accordance with federal rules. Kraken, the world’s fourth-largest crypto exchange, has been forced to turn over information on U.S. citizens involved in transactions totaling at least $20,000 from 2016-2020. The legal tool used by the IRS to Read More

CP2000: Notice of Unreported Income

Anything you get in the mail from the IRS besides a tax refund probably isn’t a letter you want to receive. One such letter is the Notice of Unreported Income, known to many as “CP2000.” The purpose of this notice is to inform you of the IRS’ assessment that you did not accurately report all of your income for the previous tax year. It is NOT a bill nor is it an ironclad assessment of tax obligations—including Read More

Did You Know the IRS Gives Out Badges?

It’s true. However, these badges aren’t something the federal agency gives out for a job well done. Rather, tax professionals refer to these designations as badges of fraud. As the name suggests, these badges are indicators to the IRS that a taxpayer committed an error with possible fraudulent intent. This puts the taxpayer in danger of having to pay civil or criminal fines. In the most severe cases, prison time is Read More

Not All IRS Audits Are Created Equal

You don’t have to be a tax professional to know that a tax audit is not on anyone’s wish list. Most taxpayers think of an audit as a tremendous invasion of privacy wherein they have to produce documentation of every dollar they’ve ever earned. Some audits do require taxpayers to show numerous financial documents.  Chances are, though, that if you are audited, you will never speak face-to-face with an IRS agent, Read More

IRS Liens Can Still Affect Your Credit

In April 2018, the three major credit reporting bureaus announced a shift in procedures: they would cease including federal tax liens on credit reports. This was welcome news to individuals and businesses struggling to pay tax debts. There are still several other ways, though, that tax liens (federal and state) can indirectly affect one’s credit and overall financial wellbeing.  What is a Tax Lien? When an Read More

IRS Penalty Relief: First-Time Penalty Abatement

For all the doom and gloom surrounding “the IRS” — a mere mention of the federal agency is enough to make some taxpayers shudder — plenty of people might be surprised about how willing representatives are to help taxpayers settle tax liabilities and penalties. The IRS is typically more lenient toward taxpayers without a long rap sheet. In other words, you’re more likely to receive penalty relief for your first tax Read More