Which Taxpayers Are More Likely to Be Audited?

July 30, 2017

Just thinking about an IRS audit can cause anxiety and panic. Thankfully, not everyone has to undergo such scrutiny by the IRS. According to an article on CNBC.com, the total number of individuals audited by the IRS in 2016 declined for the sixth year in a row. Just over one million people—only 0.7 percent—were audited…
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Appealing a Denial of Innocent Spouse Relief

July 18, 2017

If you file a claim for innocent spouse relief, you will know the status of your claim when the IRS issues you a Notice of Preliminary Determination. This notice contains information regarding the decision of the IRS, as well as the basis for their decision. If you disagree with this initial determination, you are entitled…
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What You Need to Know About Tax Evasion

July 2, 2017

Tax evasion is the most common federal tax crime. It can be defined as the failure to report taxes, the failure to pay taxes, or the reporting of taxes inaccurately. In order to establish a case for tax evasion, the government must be able to prove each of the elements of this offense. You, the…
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What Does My CP-504 Notice from the IRS Mean?

June 25, 2017

If you owe back taxes to the Internal Revenue Service, you may receive a CP-504 notice in the mail. The CP-504 notice essentially informs you of the agency’s intention to issue a levy against your state income tax refund because you have an outstanding balance on one of your tax accounts. If you are unable…
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How Much Can the IRS Levy From My Paycheck?

June 10, 2017

Many people wonder about how much money the IRS can take from their wages if the IRS opts to issue a wage garnishment. The reality, however, is that the IRS does not take a specific percentage from an individual’s income. The IRS actually adheres to a set of levy exemptions enumerated in the tax code….
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Can My Passport Be Revoked If I Owe Taxes to the IRS?

May 30, 2017

If you owe taxes to the Internal Revenue Service, you should know that the agency has numerous ways to compel you to pay your debt—including the revocation of your passport. In December 2015, President Obama signed a five-year infrastructure spending bill referred to as the FAST Act or Fixing America’s Surface Transportation Act, giving the…
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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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