IRS Audit Basics

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Taxpayers are selected for an audit for a variety of reasons.  Some are chosen due to a document mismatch, such as a return that is missing 1099’s or W-2’s.  The IRS computers usually spot missing documents based on the social security number (SSN) or employer identification number (EIN) on the document.   Others taxpayers are selected […]

Sales Tax Audits

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When the Sales Tax Auditor Comes Sales tax audits are on the rise in most states.  This is due to budget shortfalls of states across the country.  In fact, state auditors are much more aggressive than the auditors at the IRS.  The state has the power to do massive damage to a business as a […]

Guide to IRS Payment Plans or Installment Agreements

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The Basics of IRS Payment Plans or Installment Agreements IRS installment agreements, also called IRS payment plans, are offered to taxpayers looking for a way to pay their tax to the government in monthly amounts.  Installment agreements are among the most popular programs requested by clients at our Atlanta CPA firm. There are several variations […]

Section 1031 Exchange and Delaware Statutory Trust

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Section 1031 Exchange for Real Estate Investors Section 1031 allows an investor to sell real estate for a gain and then roll the proceeds into another “like-kind” asset.   This type of transaction is called a “1031 exchange,”  which allows the investor to defer paying capital gains tax on the property which was sold. Tax deferral […]

Currently Not Collectible (IRS Hardship Program)

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IRS Hardship Program It is a regular occurrence that we see clients in our accounting firm who owe taxes to the IRS that they cannot afford to pay.  Sometimes it is a tax bill for one year.  Frequently it is a tax bill for multiple years.  Either way, the IRS offers a number of solutions […]

Federal Tax Lien in 2022

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IRS Tax Liens: The Basics If you owe money to the IRS, then there is already a tax lien against you. A federal tax lien comes into effect when a tax liability is assessed and the taxpayer does not pay the amount in full.  The lien attaches to all of the taxpayer’s assets, including assets […]

IRS Appeals Process

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The IRS Appeals Process for collections began in 1998 with the IRS Restructuring and Reform Act.  As a result of this law, taxpayers were no longer at the mercy of the IRS.  The new rules prohibited the IRS from levying bank accounts and garnishing wages at will.  And a formal appeals process was instituted to […]

Expense Deduction for Teachers: $50 Increase

Teaching Moment

Educator Expenses:  A Bit of Good News The IRS increased the expense deduction for teachers by $50!  While this is not earth shattering, at least it is a step in the right direction.  We like to share good news whenever we can. The Basics of Teacher Tax Deductions Teachers and other educators may now deduct […]

Statute of Limitations and IRS Tax Relief Programs

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The statute of limitations gives the IRS up to 10 years to collect a tax.   Once the 10-year period expires, the tax is no longer enforceable and it simply goes away.  This is great news for the taxpayer who is under a mountain of tax debts.   The end is always in sight. The Basics The […]

IRS Negotiation: The First Step

Form 1040

IRS negotiation is a fundamental part of our tax practice.  Typically, negotiation is required when the taxpayer owes taxes, penalties and interest to the IRS that they cannot afford to pay.   This problem can be for one year or for multiple years.  The debt may result from personal income taxes, business income taxes or unpaid […]