Category: Michigan Tax Blog

3 Types of IRS Penalty Abatement

tax penalty relief

  What is a Tax Penalty Abatement? Taxpayers with unfiled tax returns or unpaid taxes are often hit with the following IRS penalties: The failure-to-file penalty, which accrues at 5% of your unpaid taxes per month The failure-to-pay penalty, which accrues at 0.5% of your unpaid taxes per month In addition, you’ll be charged interest… Read more »

What Are the IRS Streamlined Filing Compliance Procedures?

Streamlined Filing Compliance Procedures_ What Are They and Are You Eligible

Many people may wonder what constitutes the IRS streamlined filing compliance procedures. The IRS streamlined filing compliance procedures are a system of procedures which allows US taxpayers the ability to acknowledge their failure to  report all of their foreign assets, as well as to certify that this failure to report all foreign financial assets, and… Read more »

Payroll Tax Errors: Who Does the IRS Hold Accountable?

Payroll Tax Errors- Who Does the IRS Hold Accountable?

If you are an employer or employee who has fallen behind on payroll taxes and are now facing a hefty bill from the Internal Revenue Service, ignoring it will not make it go away. When it comes to unpaid payroll taxes, the IRS often comes down much harder on taxpayers than they do with unpaid… Read more »

What is the Difference Between IRS Form 433 A, B and F?

IRS 433 Forms

Whether you are a wage earner or self-employed, there are three relevant information collection statement forms titled as IRS Form 433A, IRS Form 433B, and IRS Form 433F. Their basic function is to relay your financial assortments in a particular structure to the IRS. From these collection documents, the IRS is able to determine how… Read more »

What to Know About the 1099-K

What to Know About the 1099-K

IRS Form 1099-K is a form used by the Internal Revenue Service to report certain transactions to improve voluntary tax payments and compliance. The form originated in 2008 as part of the Housing Assistance Tax Act, even though the document has nothing to do with housing at all. A 1099-K is required for those who… Read more »

How to Find the Best Tax Attorney

tax lawyer

7  Things to Look for When Hiring a Tax Lawyer Having a tax issue can be daunting.  So can the task of having to find a tax attorney qualified enough to take on your tax matter.  Here is a list of the top 7 things to look for when searching for a tax lawyer

Understanding the Difference Between Tax Evasion and Tax Avoidance

difference between tax evasion and tax avoidance

What Is The Difference Between Tax Evasion and Tax Avoidance? Usually, the payment of taxes is a lackluster affair, as nobody ever enjoys fulfilling this constitutional obligation. Nonetheless, since it is an essential source of any country’s revenue, failure to pay taxes usually has severe implications, most of which are significantly adverse.

Do I Need To Hire A Tax Attorney?

Have you ever been faced with the question “Do I need to hire a tax attorney?” If you have, then the answer is yes, you do. If you are faced with the quandary of whether you should seek out the professional help of a tax attorney now or if you should wait until a later… Read more »

Statute of Limitations for Michigan and IRS to Collect Tax Debts

The Many Limits of Tax Statute of Limitations All things must process in a timely manner when it comes to the IRS and taxes. For this purpose, the tax code has imposed a set of laws, known as the tax Statute of Limitations (SOL). Under this, there are certain time limits on different tax-related actions… Read more »

Everything You Need to Know About Discharging Tax Debts in Bankruptcy

Discharging Taxes in Bankruptcy You cannot escape from tax debts owed to the IRS. Luckily, there are a few options to eliminate them. Some tax obligations may be discharged and managed through bankruptcy. In the world of tax debts, this is only an option if your tax debt qualifies for a discharge. Here’s some advice… Read more »