When it comes to dealing with tax debt, many taxpayers are torn between two very common options: discharge the tax debt by filing for Chapter 7 bankruptcy or settle the debt through an offer in compromise. Here we explain what both alternatives consist of and how to know which one to choose according to your … Read more
If you are a farmer, you should be aware of the IRS hobby loss rules that limit tax deductions for agricultural losses. In order to deduct a loss from a farming activity, you must be able to prove to the IRS that the activity was carried out for profit. If the IRS classifies your farm … Read more
If you miss your tax filing deadline or don’t pay your tax debt in full, you could be in serious trouble. The IRS recommends filing overdue tax returns as soon as possible to limit interest charges and late payment penalties. Here is an overview of the process for filing back tax returns. Should I File … Read more
Surprising as it may seem, using a home equity loan to pay taxes is actually possible. Although getting a loan to pay your taxes may seem unattractive, the IRS advises that one of the best solutions to pay off tax debt is to apply for a home equity loan. Here we’ll explain why getting a … Read more
If you have received a Notice of Intent to Levy, you need to take action soon in order to prevent the IRS from seizing your assets. Here we’ll explain what an IRS levy is and how to prevent the IRS from taking your assets. What is an IRS Levy? An IRS levy is a legal … Read more
If you didn’t get your stimulus payment or got less than the full amount, you may be eligible to claim a Recovery Rebate Credit on your 2020 or 2021 tax return. Follow these steps to get all your stimulus payments using TurboTax: Step 1 Get a copy of your Notice 1444 and 1444-B. These notices … Read more
If you don’t have the financial ability to pay taxes, you may qualify for the IRS to place your account into currently not collectible. This means that you can postpone paying taxes to the IRS until you are financially able to pay. As long as your account remains in currently-not-collectible status, the IRS will not … Read more
If you disagree with the results of an audit of your tax return, or with a tax return the IRS prepared for you because you did not file your return as authorized by the Internal Revenue Code 6020(b), you can request audit reconsideration. Reasons to request an Audit Reconsideration There are some reasons why you … Read more
If you are looking to settle your IRS tax debts, an Offer in Compromise can help you settle your tax liabilities for less than the full amount you owe. Here we explain how to apply for this tax debt relief. Step 1: Make sure you qualify for an OIC To qualify for an Offer in … Read more
As Hurricane Dorian threatens, the Internal Revenue Service encourages all taxpayers, whether individuals, organizations, or businesses, to develop an emergency preparedness plan. Preparing for a disaster Taxpayers can begin preparing an emergency plan that includes securing and duplicating essential documents, creating lists of property, and knowing where to find information once a disaster has occurred. … Read more
Affected taxpayers in the Hurricanes Harvey and Irma covered disaster areas can claim disaster-related casualty losses on their income tax return. Hurricane Harvey Covered Disaster Areas Texas: Aransas, Austin, Bastrop, Bee, Bexar, Brazoria, Burleson, Caldwell, Calhoun, Chambers, Colorado, Comal, Dallas, DeWitt, Fayette, Fort Bend, Galveston, Goliad, Gonzales, Grimes, Guadalupe, Hardin, Harris, Jackson, Jasper, Jefferson, Jim … Read more
When married taxpayers sign a joint tax return, they are jointly and legally responsible for all taxes due, even if one spouse incorrectly reported items or omitted items on the tax return. In the event that a spouse reports improper items on the joint return on purpose, the IRS may exempt the innocent spouse from … Read more
If you use your car or truck only for business, charity or medical purposes, you may deduct all costs of ownership and operation in your tax return. The amount of your deduction will depend on the number of miles you have spent driving for any of these tax-deductible purposes. You can claim car and truck … Read more
Entering into a payment plan with the IRS can be a good alternative to pay off your tax debt. When you apply for a payment plan, you agree to pay a certain amount each month until you pay off your outstanding debt. Learn the types of payment plans you can apply for and how to … Read more
The IRS files federal tax liens against taxpayers who have unpaid tax obligations. This gives the government the right to keep a person’s property until the person pays the taxes owed. Here’s how to understand an IRS tax lien and what you can do to release it. How works a Federal Tax Lien When you … Read more
To make a mistake when filing a tax return or paying a tax debt is a fairly common thing that can happen to anyone. However, it is important to understand that these mistakes can result in an IRS penalty. Learn more about the different types of penalties, what to do if you receive a penalty, … Read more
Most people have already received all of their Economic Impact Payments from the IRS, so they will not be eligible to claim a Recovery Rebate Credit. Individuals who have not received any stimulus payments or have received less than the full amount may be eligible to claim a Recovery Rebate Credit on their 2020 or … Read more