Top Tips for Handling an IRS Notice of Deficiency
An IRS Notice of Deficiency informs you that you owe additional taxes due to discrepancies in your tax return. This document, also known as a ‘90-day letter,’ gives you 90 days to respond. In this article, we’ll explain what a Notice of Deficiency is, why you might receive one, and the steps you should take […]
IRS Notice CP2000: What is It?
What is IRS CP2000? IRS Notice CP2000 is one of the most common IRS letters that we see in our CPA practice. The IRS mails these notices to taxpayers when information from a third party source (such as a 1099 or W-2) does not match the information the taxpayer reported on their income tax return. […]
CPA for Independent Contractor: Top Services for Essential Tax Help
Navigating taxes and finances as an independent contractor can be daunting. A CPA (Certified Public Accountant) helps manage these tasks efficiently, ensuring you maximize deductions and stay compliant with tax laws. This guide will show how a CPA for independent contractors can save you time, money, and stress in your financial management. Key Takeaways Independent […]
Understanding Insolvency for Cancellation of Debt: A Simple Guide
Are you dealing with canceled debt and wondering how insolvency affects your tax situation? Understanding insolvency for cancellation of debt is crucial for managing potential tax liabilities. Under IRS tax regulations, cancelled debt can be excluded from taxable income under the insolvency exclusion when a taxpayer’s liabilities exceed their assets. This guide will explain what […]
Who Can Take Your Tax Refund and How to Protect It
Worried about who can take your federal tax refund? Federal and state agencies, as well as private creditors, may have the authority to seize it. This article will explain which entities can take your refund and how you can safeguard it. Key Takeaways Federal and state agencies can seize tax refunds to recover outstanding debts, […]
A Guide to IRS Tax Penalties
The IRS imposes civil penalties in many situations. Penalties are meant to act as a stick to motivate the public to comply voluntarily with the tax laws. Tax penalties may be either civil or criminal. Civil penalties are financial Criminal penalties may involve jail time This article will focus what you need to know […]
IRS Hardship Program: Currently Not Collectible
We regularly meet with clients of our accounting firm who owe taxes to the IRS that they cannot afford to pay due to a financial hardship. Sometimes it is a tax bill for one year. Frequently it is a tax bill for multiple years. The IRS offers a number of solutions that provide tax relief to taxpayers […]
Top Reasons to Hire a Tax Strategist for Your Tax Planning
A tax strategist assists individuals and businesses to minimize their taxes. The tax plans that they develop are made to ensure that the client stays within the law and to minimize the risk of IRS audit. This article explores the essential roles of a tax strategist and the advantages of regular tax planning. Tax strategist […]
Mastering the IRS Offer in Compromise: Reducing Tax Debt
Are you overwhelmed by tax debt and looking for a solution? An IRS offer in compromise (OIC) might be the lifeline you need. This program allows eligible taxpayers to settle their tax debts for less than the total amount owed. In this article, we’ll explain what an OIC is, how to determine if you qualify, […]
How to Negotiate with the IRS: Resolving a Tax Debt
Understanding Tax Debt Relief Tax debt relief refers to the various options available to individuals and businesses struggling to pay their tax obligations. The IRS offers several programs and services to help taxpayers manage their tax debt, including installment agreements, offers in compromise and tax penalty abatement. Understanding these options is important for taxpayers who […]