Pros and cons of filing a tax extension Filing a request for a tax extension using IRS Form 4868 asks the Internal Revenue Service (IRS) to extend the time to tax file your personal tax return. An extension moves the deadline for submission of 15 April to 15 Oct. An extension gives you additional time [...]

How to respond to a letter from the IRS The answer actually depends on the type of letter from the Internal Revenue Service. Every year the IRS sends millions of letters and notices. This is the way the agency contacts taxpayers, not by calling them out of the blue and threatening to put them under [...]

Cyber thief, hacker, wearing a man mask and shaking hand with businessmano on computer laptop. Cyber security and crime concept. Vector illustration of flat design people characters. IDENTITY THEFT AND THE IRS An identity thief may bring you troubles with the IRS by using your social security number to file a false tax [...]

What happens when you are in debt to the IRS Assuming you received a letter from the Internal Revenue Service (IRS) a couple of years back indicating that you owed money to the IRS. At the time, you didn't know what to do and missed the deadline. This year you are sure to get a [...]

Bills from the IRS on Underreported Taxes You received your mail today. There is a letter from the Internal Revenue Service. It is not the period of tax refund so it can't be anything good. You are tempted to throw it away, but you open it anyway. It is a "Notice of Proposed Deficiency" that [...]

IRS aid with delinquent taxes Several tests are used by the IRS to decide whether to remove interest penalties. The tests to reduce the IRS tax interest are stricter than the tests used to reduce the fines. To reduce the IRS tax interest, a taxpayer must demonstrate that the interest was one of the following: [...]

The Importance of IRS Form W-9 The IRS (Internal Revenue Service) Form W-9 is usually used by individuals who are self-employed or sovereign contractors. If you ever find yourself in a situation of filling out a Form W-9, this in general means that a company or person paying you money needs your Social Security number [...]

Need to Qualify for the Child Tax Credit What Is the Child Tax Credit? The Child Tax Credit (CTC) is planned to give an income increase to the parents or guardians of children and other dependents. It only relates to dependents who are younger than 17. The credit is worth up to $2,000 per dependent, [...]

What you need to know on IRS tax estimation If you are a worker, your employer withholds taxes from each paycheck and sends the money to the IRS (Internal Revenue Service) and likely also to your state government. In this way,  you pay your income taxes right away. And, if you're like most salaried employees, [...]

Procedures to file an amended tax return to the IRS If you made an error on a tax return you already filed, or just found new information, such as a deduction or tax credit you just realized you qualify for, file an amended tax return to make the correction. The Internal Revenue Service (IRS) is [...]