Filing for an Audit Reconsideration Request with the IRS

April 30, 2017

An audit reconsideration is an administrative process used by the IRS to reexamine a previous audit’s results in which additional tax was assessed and is still unpaid, or in which a tax credit was reversed. Apart from disputing or disagreeing with an initial audit assessment, other common reasons to request an audit reconsideration are: Being…
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Understanding the IRS Fresh Start Program

April 15, 2017

No taxpayer likes getting on the wrong side of the Internal Revenue Service. After all, the penalties for falling behind on IRS tax obligations can be severe, and may include collection methods such as garnishments, tax liens, levies, and even criminal sanctions.  The Fresh Start program, an initiative first announced in February 2011, is a…
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Appealing a Tax Audit

April 5, 2017

The result of a tax audit is often an assessment of back taxes, penalties, interest, and possibly even criminal sanctions. Unknown to many is that taxpayers who receive unfavorable adjustment rulings from an audit have the right to disagree with the IRS and appeal the final results of the audit. The primary objective of the…
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What Documents Should I Prepare for an IRS Audit?

March 30, 2017

A tax audit is a review of your financial information and accounts by an IRS agent or state auditor. An audit ensures that you properly reported your income, expenses, and credits according to tax laws. Audits may not be uncommon, but defending yourself in an IRS audit can be both stressful and time-consuming. The IRS…
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Tax Negligence Versus Tax Fraud

March 19, 2017

The line between tax negligence and tax fraud is unclear—even for the courts and the IRS. These are two different forms of illegal actions committed by taxpayers when filing out their tax returns, and carry different penalties under the law. IRS auditors understand complex tax laws, and assume all tax returns have errors. Though these…
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Do I Qualify for Penalty Abatement?

March 7, 2017

If you owe money to the Internal Revenue Service, you may be concerned about debt payment, penalties, and interest. Some taxpayers qualify for a penalty abatement, which is a waiver of the charges and fees incurred from either late or non-payment and filing of a person’s income tax. However, the IRS is very selective when…
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What is the Fresh Start Initiative?

February 28, 2017

In 2011, the Internal Revenue Service executed the first of numerous programs that offered collection alternatives to taxpayers struggling with financial hardship due to the 2008-2009 economic crisis. Collectively known as the Fresh Start Initiative, this program aimed to make it easier for taxpayers to settle their tax debits quickly and more easily. The Fresh…
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Negotiating Back Taxes with the IRS

February 22, 2017

Over the last few years, the Internal Revenue Service has been more agreeable to installment agreements and other ways of working out late tax payments. Not everyone, though, can negotiate with the IRS. The IRS can be selective as to which debt they will negotiate, and so a taxpayer must meet certain criteria to be…
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What You Need to Know About Failure to File and Pay Penalties

February 10, 2017

The IRS can charge a penalty if you fail to file a tax return, fail to pay a tax return, or both. The agency can also charge interest on any unpaid taxes. The penalty for filing late is calculated based on the time passed from the deadline of your tax return to the date you…
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Tax Liens and Your Credit Score

February 1, 2017

Tax liens are the government’s legal claim against some or all of your assets when you either fail or neglect to pay a tax debt on time. Tax liens may occur at the local, state level, or federal level. Tax liens are often placed for personal income tax, but may include property tax and other…
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