IRS Penalty Abatement And Reasonable Cause Being assessed a penalty by the Internal Revenue Service can be an overwhelming situation. Faced with potentially massive penalties a taxpayer’s financial future may seem bleak. Fortunately, there may be relief available. The IRS offers qualified taxpayers something called “penalty abatement.” But, what is and how is it determined?… [Read More]
Important Notice: Consumer Alert from the Attorney General on “Tax Relief” ScamsHow to Handle an IRS Summons
What To Do When You Receive A Summons From The IRS Before receiving an official IRS summons, you may receive several other notices, including an Information Document Request. The IRS begins by asking you for the information nicely, and issues the summons when you fail to comply.
When Will the IRS Withdraw a Notice of Federal Tax Lien?
What’s the difference between a federal tax lien and a Notice of Federal Tax Lien? There’s an important distinction between the federal tax lien and the Notice of Federal Tax Lien. The federal tax lien automatically applies to all of your property when you fail to pay taxes after a demand for payment. The Notice… [Read More]
How Is IRS Interest Calculated?
How Interest is Determined When you’re late filing or paying your employment taxes to the IRS, penalties and interest charges will be will be triggered and assessed. Navigating the waters of IRS tax code can be an extremely tricky proposition – thankfully, we have compiled a helpful guide to understanding how the IRS calculates interest…. [Read More]
How to Handle a Notice of Substitute Return Filing
Letter 2566, Notice of Proposed Tax Assessment The first notice you’ll receive about a Substitute for Return (SFR) is typically a Letter 2566, Notice of Proposed Tax Assessment. When you receive this notice, the IRS is telling you, “You were supposed to file a tax return but didn’t, and here’s how much we think you… [Read More]
The IRS Can File a Substitute Return on Your Behalf
What are the Drawbacks to Letting the IRS File an SFR on your behalf? If you don’t look forward to filing your taxes, having the IRS file your return for you might not sound so bad. However, there are several drawbacks to the Substitute for Return (SFR) filed by the IRS:
How the IRS Proves You Have Committed Tax Fraud:
Methods of Proof of Tax Fraud When the IRS decides to pursue a criminal tax investigation into a taxpayer, it is typically because they believe said taxpayer has committed some sort of tax fraud. Usually that is underreporting of income, overstating their deductions, or not reporting certain income at all. In order for the IRS… [Read More]
Negligence Versus Tax Fraud: How the IRS Tells the Difference
What is the Difference Between Negligence and Tax Fraud? The American taxpayer’s fear of the IRS is very similar to our fear of the dentist: irrational and rooted in nothing more than making mountains out of molehills. (most of the time). What do I mean by this? Well think about it. Think back to the… [Read More]
What Is A Streamlined Installment Agreement?
Streamlined Installment Agreement A monthly payment plan is generally the easiest way to pay off any large debt, even a tax liability, and, yes, you can indeed make payment arrangements with the Internal Revenue Service. There are four types of payment plans offered by the IRS. Here’s our guide for those you asking what is… [Read More]
The IRS Payment Plan Process For Unpaid Business Taxes
Here’s our guide to the IRS payment plan process for unpaid business taxes. Unpaid Business Taxes Generally, if you owe payroll taxes for an amount less than $25,000, you can request an installment agreement to full pay their tax liability within 24 months, provided that you are in filing compliance. If you cannot afford to… [Read More]