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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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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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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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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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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9 Ways to Resolve Your IRS Tax Debt for Less Than You Owe

February 1, 2017

Are you struggling to pay off your tax debts? Though the IRS can appear very intimidating, the reality is that the agency can be very patient and understanding if it knows you have every intention of paying off your outstanding debts. Here are some ways you can settle your tax debt with the IRS for…
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How Far Back Can the IRS Claim on Tax Evasion or Fraud?

January 8, 2017

Even though you may be a law-abiding taxpayer, innocent mistakes can be easily interpreted as suspect. If you are a business owner, an aggressive tax planning strategy may be considered illegal without you knowing it. It therefore pays to be able to differentiate tax evasion and fraud, as well as to know the statute of…
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The Difference Between the IRS Automated Collection Service and Revenue Officers

January 4, 2017

Dealing with unresolved tax issues with the IRS can be a stressful experience. If you have unpaid taxes owed to the IRS, you can certainly expect to be contacted by someone at some point. You may be contacted by the Automated Collection Service or ACS, or you may be contacted by an IRS Revenue Officer….
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