We often think of the IRS as an ominous entity who is out to take as much of our money as they can. However, despite our frustration with this important government entity, we still tend to take their statements and determinations at face value without question, when in reality the IRS is run by people just like you and me who are very capable of human error. The IRS can most certainly make mistakes, and although it Read More
The Truth About Taxes: Exposing 4 Myths About IRS Audits
When tax season rolls around, few things are scarier than the risk of being audited. Whether you’re a business owner or a hard working employee, the thought of an audit can sometimes keep people from filing their annual return, or at the very least cause serious anxiety and procrastination. There are a lot of myths regarding IRS audits, and they often paint a very inaccurate picture of how the system actually works. Read More
How Can I File My Back Tax Returns? I Have No Records.
Our Firm often encounters individuals and businesses who have not filed income tax returns for many years. Oftentimes, someone went through a traumatic event, such as the death of a spouse, and did not file a tax return for that year. Or business owners may have had a dispute, and one owner may have taken all of the records, making it difficult for the other owner to file a tax return. However, the consequences Read More
Understanding the IRS Tax Lien
It’s true that you can’t go to jail simply for not paying the IRS (though, you can go to jail for lying to the IRS or trying to cheat on your taxes), but the IRS has other methods it can use to get money you owe them, and understanding them is vital. For example, the IRS can file a tax lien against your house (or other real property), which will make it difficult for you to sell your house or refinance your Read More
Remove a Tax Lien from Your Credit Report
An IRS tax lien does not need to ruin your credit score forever. It is possible to have it removed so that you can qualify for a business loan or to allow you to qualify for financing for that new house you have been wanting to purchase. If a tax liability is not paid, the IRS will send a notice of the amount due and a demand that it be paid. If it is not paid, a tax lien is automatically created by law. To Read More
IRS Tax Relief Strategies: The Advantages & Disadvantages of IRS Installment Agreements
Most taxpayers do not realize that the IRS is surprisingly willing to work with them in order to help them find ways to satisfy their tax debts without placing an unreasonable financial burden on them and their loved ones. As we’ve discussed in a previous blog, one common relief strategy taxpayers can take advantage of when they are struggling to fulfill their tax liability is the “offer-in-compromise.” Another great Read More
The Three Types of IRS Audits
Receiving a notice that your tax returns are going to be audited by the IRS can be a daunting and confusing experience. What are you supposed to do? How are you supposed to respond? How can you expect the process to play out? Audits should always be taken very seriously, but as long as you properly prepare yourself and set your expectations, they should not be a cause for panic. The scariest aspect of an IRS Read More
A Brief Q&A on IRS Levies and Wage Garnishments
When it comes to upholding and executing the US Tax Code, the Internal Revenue Service (IRS) has extremely broad powers. When you owe taxes, and you ignore or refuse to work with the IRS to satisfy your debts, they have the authority to employ some extreme measures in order to collect from you what is owed, including any interest and penalties that have accrued as a result of your unpaid tax debts. Some of the Read More
The Income Tax Lifeline: Understanding the IRS Offer-In-Compromise Program
So, it’s a brand new year and the due date to file your income taxes is just around the corner. But what happens when you can’t pay the IRS what you owe? The thought of not being able to afford one’s taxes oftentimes conjures images of a vengeful IRS seeking to ruin your life by taking everything you own. Certainly, if you try to hide from your tax bill things are only going to get worse for you. There will be Read More
The Freedom to Request Information
Among the several rights granted to United States citizens, the Freedom of Information Act (FOIA) is one that most people overlook. It is a significant privilege. In 1966, Congress enacted FOIA to provide individuals with access to “identifiable records.” Records could be obtained without the requirement to demonstrate a need or reason for the records. This means that the government had to show a reason for Read More