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

What to Do if the IRS Garnishes Your Paycheck

The Internal Revenue Service (IRS) is arguably the most powerful creditor you may ever have. While you can declare bankruptcy to clear debts such as credit card bills and unpaid utilities, income tax debt is often non-dischargeable. When you can't or won’t pay your taxes, the IRS can and will garnish any income you receive to satisfy the debt. This includes: Salary Hourly wages Commissions Bonuses Unlike Read More

A Brief Overview of IRS Penalties for Nonpayment

We’ve all heard stories about the consequences of not paying your taxes. Al Capone is one famous example. More recently, Eric Galanti, former owner of three bars and restaurants in Seattle, was sentenced to eight months in prison for several misdemeanor counts of failing to file tax returns (and, by extension, pay his taxes). Although these are extreme examples, they are also reminders that the IRS frowns on Read More

Lower Your Tax Debt with an Offer-in-Compromise

The IRS has a debt settlement program called an Offer-In-Compromise.  It can be used by individuals and by businesses, such as restaurants, Airbnb owners, and professional service firms who owe the Internal Revenue Service more money than they can afford to pay can use this tax resolution tool to lower their debt. The IRS accepts offers-in-compromise to taxpayers to give them a “fresh start” without their tax Read More

When an IRS Installment Plan Makes Sense

If you have outstanding debts with the IRS, one the most important things to remember is that the IRS wants to work with you to settle your debt and even provides options to help you do so. One of these options is called an installment agreement. An installment agreement is like a payment plan, and it enables you to pay off your tax debts over time via monthly payments. There are several different types of Read More

The 5 Most Common Causes for an IRS Audit

Getting audited by the IRS is something everyone hopes they never have to go through. Even though audits are relatively rare for most people, it’s important to make sure you do everything you can to ensure that it doesn’t happen to you. Luckily, there are a lot of things you can do to lessen your chances of getting audited. Below we take a look at some of the most common causes for an IRS audit.  1.   Failing to Read More

How to Choose a Tax Attorney to Assist You

Choosing a Tax Attorney There are a number of things you should consider when choosing a tax professional or tax attorney to assist you with your tax problem: Hire a Tax Professional If you are facing a challenging audit with the potential for a large tax bill or for harsh penalties, a tax attorney, who is trained in negotiation skills and understands tax law will be best suited to negotiate a favorable outcome.  Read More