Cryptocurrency and Taxes

You have probably heard of Bitcoin and cryptocurrency, but you may not know exactly what it is, or how it is treated for tax purposes. Let me explain what cryptocurrency is and why you need to know about it. Crypto comes from cryptography, which is computer technology used for security, hiding information, and verifying identities. Cryptocurrency is a form of electronic money. It is made possible by a new kind Read More

Collections Due Process Explained

The Fourth Amendment guarantees you due process in situations where your life, liberty, or property are at risk. When you owe money to the IRS, they have the power to garnish your wages, file liens and levies on your property, and sue you, but the IRS Restructuring and Reform Act of 1998 gives you statutory rights in this situation, including the right to a hearing. A Collections Due Process Hearing gives you the Read More

Advantages and Disadvantages of Using a Tax Resolution Professional to Solve IRS Taxes

Nothing can strike fear into the heart of a small business owner or other citizen like being contacted by the Internal Revenue Service. This tax agency enjoys powers not granted to many other parts of the government. Unlike those other government agencies, the IRS can garnish your wages, freeze your bank accounts and seize your property. So, you cannot simply do nothing if the IRS contacts you or your business about Read More

4 Ways the IRS Can Collect Their Debt

When the IRS determines that you owe money, the collection process is steady and methodical. Below is an overview of four ways that the government commonly uses to collect tax arrears, some of which can have a serious impact on your business and your life. 1. Sending Notices It starts with the CP501 notice, which is an assessment letter informing you of your tax liability, including any interest or penalties Read More

Credit Agencies No Longer Report IRS Tax Liens

Last year the three credit reporting agencies (Experian, TransUnion and Equifax) announced that they will no longer report IRS tax liens on people’s credit reports. See https://www.experian.com/blogs/ask-experian/tax-liens-are-no-longer-a-part-of-credit-reports/. Prior to this, you had to wait seven years after you paid the tax liabilities the IRS lien covered to remove it from your credit report.  The wait was Read More

Meeting with the IRS? 3 Tips to Help You Prepare

When you receive a letter from the IRS stating that you’ve been selected for a tax audit, it’s normal to be worried even if you’ve always filed your returns on time and you’re reasonably sure that they are accurate. There’s just something about an IRS notification that makes you feel as if you’re guilty until proven innocent. Your first question after reading the letter will probably be “Why me?” followed by “How Read More

The Notice of Deficiency: What to Do If You Receive One

Few things are more worrying than receiving a letter from the IRS. When that communication is IRS Notice of Deficiency, it can be even more stressful.  This notice can advise you that the information on your tax return does not match government records, or can be sent after an IRS audit when you have not agreed with the IRS’ findings.  It also puts you on notice that your tax obligation is being assessed and gives Read More

“Should I File My Taxes Even if I Can’t Pay?”

When you do your taxes for 2018 and learn that you owe the IRS, you’ll probably be annoyed. If you can’t pay what you owe, annoyance can escalate into alarm. In this situation, it’s tempting to skip filing altogether. What’s the point if you can’t pay? Won’t a filing without an accompanying payment set the IRS on your trail because it now knows that you owe money? The bad news is that it’s true. The IRS will see Read More

Know Your Rights: What to Do When the IRS Comes After You

The Internal Revenue Service (IRS) has been described as the most powerful collection agency in the country. Unlike your average debt collector, it can impose a tax levy, seize your assets, and garnish your wages without getting a court judgment first. If you can’t or don’t pay your taxes, the IRS will eventually take steps to collect the money from you, using the methods mentioned above. While this is a worrying Read More

Tax Tips for Self-Employed People

Most taxpayers are employees who get a paycheck every pay period and can for the most part ignore their taxes until the end of the year. Their employers are responsible to withhold taxes from their paychecks and they get a W-2 at the end of the year. But if you are a freelancer or are self-employed, you alone are responsible for paying your taxes. If you are self-employed and don’t have a comprehensive Read More