Often, tax payer run into tax debt issues because they don’t understand filing requirements or how a lack of compliance could prove to be costly due to penalties and interest added to existing liabilities. The worst thing a tax payer can do is ignore the obligation to file. The IRS has ways of finding out …
Whether you received a 1099-C or not outstanding debt that’s been cancelled has to be reported as income. The good news is you may qualify for special exceptions, and/or exclusions that could eliminate negative tax consequence. Not understanding what’s available to you, as it relates to tax treatment of cancelled debt, could expose you to …
The Difference Between 1099-C Cancelled Debt Exclusions and Exceptions Read More »
If you’ve received a notice of audit from the IRS, here’s a few things you should know to ensure that your experience is as painless as possible. The last thing you want to do is ignore the request for documentation. Even if you don’t have what’s being requested, you can avoid further problems and unnecessary …
If you currently owe the IRS back taxes, now would be a good time to contact a tax professional to determine if you qualify for the IRS fresh start program. Recently, the IRS released information pertaining to their decision to enlist the assistance of four third party collection firms to assist in the recovery of …
IRS Tax Debt to be collected by Third Party Agencies Read More »
The Internal Revenue Service recognizes that sometimes, when a joint return is filed, both parties may not be responsible for a resulting tax liability. However, when a tax liability exist, either party can be held jointly and severally liable. This means that either spouse could be held responsible for entire tax liability. The Internal Revenue …
If you have an outstanding balance with the IRS chances are you’ve been entered into the IRS Collection system. The IRS is under a mandate to follow a specific process when attempting to collect past due taxes from tax payers. Being informed about how the IRS Collection system works could save you a lot of …
If you’ve received a notice from the IRS it could mean a myriad of things from a miscalculated credit to notice of intent to take further collection action. Generally, IRS notices have a number in the right hand corner that may start with the letters CP. This is the first indicator of what the letter …
Recently, the IRS implemented the new tax payer’s bill of rights. This is a great step in helping to eradicate the inherent fear that seems to plague an overwhelming amount of taxpayers. For years, the mystic that the IRS operates like some private army; taking whatever steps they want to force tax payers to pay …
In most cases, when you have an IRS tax debt liability, you have a limited amount of options. You can do the obvious, which is paying the full amount you owe, enter into a payment arrangement, attempt to settle the debt (Offer-In-Compromise), or presuming what you owe has been outstanding long enough to meet the …
With the rise in divorce and an increase in the number of people who have past-due tax liabilities, more taxpayers are seeking relief. Knowing the difference between injured spouse and innocent spouse could be very beneficial when trying to understand what options are available when you’re being penalized for a tax debt that’s not your …
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