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

What is an IRS Lien?

Dealing with an IRS tax issue is always a stressful time. There are a lot about taxes that the average person doesn’t know or understand, so it can be particularly daunting when you have to figure out what to do next. Trouble with the IRS can be made even worse if you are having financial problems and have been unable to pay your bills, including outstanding tax debts. Whenever you’re unable to pay your tax debts, Read More

Cancellation of Debt Income

Debt Income Many people receive income without even being aware of it.  If you owe a debt, and the debt is forgiven or canceled, the Internal Revenue Code treats this canceled debt as income. Let's say you owe on your credit cards. You reach an agreement to pay a portion of the total amount owed, and the credit card company agrees to forgive the remainder of the debt. You may be taxed on the amount that you were Read More

Taxes to Consider When Opening a Business in Washington State

Your dream to open your own business is nearly upon you. You’ve perfected your business plan, picked an ideal location, paid for the applicable licenses, and handpicked your all-star staff. Your witty radio advertisement on your favorite morning show and the viral marketing you initiated are drumming up loads of interest. Now, the last step before you can open your doors is to figure out the taxes you will need to Read More

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

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

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