The IRS gathers quite a bit of information about taxpayers. This includes those who have unpaid tax debts and those who the IRS suspects may owe additional taxes. The IRS has the ability to contact third parties in gathering this information. There are rules that must be followed in doing so. When do the Rules…
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Can I Get Interest on Unpaid Taxes Removed?
The IRS charges interest on unpaid tax, penalties, and interest. This interest can add up as time passes and the amount can be substantial. The IRS will abate or remove interest balances in certain circumstances, but it is up to the taxpayer to make this request. Even experienced tax professionals often forget about this remedy.…
Can I Correct a Tax Return Filed Several Years Ago?
We are often asked if an error on a prior-year tax return can be corrected if it results in an increased tax in the current year. The answer is “maybe.” There are two issues that have to be considered, namely, whether (1) there is still time to correct the prior year’s tax return and, if…
Have a Foreign Bank Account? What You Need to Know
There are many advantages of having a foreign bank account, such as convenience, hedging against currency risk, etc. For U.S. persons, those advantages have to be weighed against the reporting requirements. Our laws require most foreign bank accounts be reported. There can be stiff civil and criminal penalties for failing to do so. The Foreign…
Am I Required to File a Tax Return?
It can take a considerable amount of time to actually prepare and file a tax return. The IRS puts the time and cost at 13 hours and $210 dollars for the average income tax return. The numbers jump to 22 hours and $430 for the average business income tax return. Luckily, many taxpayers are not…
8 Things About the IRS Offer in Compromise
An offer in compromise is a legal agreement between you and the IRS that settles your tax debt for less than the full amount you owe. It provides you with a path for paying off your tax debt and getting a “fresh start.” If you have unpaid tax debts, here are eight things you need…
Tips For Finding the Right Tax Firm
There are quite a few tax firms out there. It can be hard to tell one from another. While there are a number of factors to consider when hiring a tax firm, here are several tips on how to whittle down the list. Identify what you need from a tax firm. Do you need tax…
10 Common Complaints About Tax Return Preparers
Here are ten of the common complaints that are filed with the IRS about tax return preparers: How to File a Complaint With the IRS To file a complaint, you typically have to submit Form 14157, Complaint: Tax Return Preparer. If a tax return preparer filed a return or altered your return without your consent…
When the IRS Seizes Your Property…
The IRS has the authority to take your funds or property if you do not pay your taxes. This is commonly referred to as a “seizure.” Our Tax Code and the IRS’s Internal Revenue Manual provide specific rules and procedures the IRS has to follow to seize your property. Here are the four primary rules…
3 Common Questions About Paying the IRS
Working with the IRS can be difficult. If you are trying to make a payment to the IRS, you may find that you cannot even get the IRS to accept your payment. Here are the three most frequent questions clients ask us about making payments to the IRS. When Must Taxes Be Paid? Income taxes…