There's always the risk of an audit, and if you're discovered to have lied about your income, tax audit penalties can be severe. The penalties vary from severe fines to criminal charges, and you may be buried behind a pile of paperwork.Find out what happens if you are audited and can't prove you filed your [...]
Rental Tax CreditsRenting out a room in your house can be a great way to earn some extra cash. But what about the tax implications? Understanding rental tax credits can significantly impact your financial responsibilities.Many people don't realize that rental income must be reported to the IRS. The good news is that many tax credits [...]
Filing Taxes in Two Stats After Moving How does moving affect taxes? Have you relocated within the last year? If this is the case, it is critical to understand how your relocation may affect your taxes. While moving to another state is unlikely to have an impact on your federal taxes, it may have an [...]
How to pay CP504 online?CP504 NoticeThe Internal Revenue Service (IRS) has a single mission as a branch of the federal government: it collects and accounts for all tax monies owed to the government. The IRS gets all of its authority from the United States Tax Code, and all actions are carried out through a variety [...]
Notice of Deficiency Waiver The IRS notice of deficiency is a legal willpower by the IRS of a taxpayer’s tax deficiency. It is an authorized written claim that a taxpayer owes additional income tax (and often interest on that amount, as well as additional penalties). It is issued when the IRS recommend a change to [...]
Receiving an adjusted refund Notice by the IRS Can Be Confusing Receiving an adjusted refund of $0.0 can definitely be confusing and raise questions. Don’t worry, this doesn’t mean you are in trouble. When the IRS makes an adjustment like this, it can mean the IRS made a math error, there is an outstanding debt, [...]
The IRS Solution To Tax Liability Having a full understanding of the basic underpinnings of your taxes gives you the opportunity to develop better financial literacy. In this regard, you can more precisely expect what taxes you will owe at the end of the year, instead of being met with an unpleasant shock in the [...]
Appealing IRS Tax Penalties Any kind of mail received from the IRS, with the exception of your long-awaited tax refund, can be a disturbing experience. It could likely be that you didn’t file your taxes on time, or maybe you have an outstanding tax bill that needs immediate payment. Either way, the IRS has hunted [...]
What to Do If You Owe the IRS and Can’t Pay The IRS would prefer working with you to ensure you’re meeting your legal obligations than punish you regardless of their status as a federal institution that instills fear and collects debt. If you’re in a state where you’re unable to pay your tax debts, [...]
Filing Taxes When You Owe The IRS When you encounter a tax debt, it is important that you act on it as soon as you can. If you don't meet the terms of the IRS, you run the risk of accumulating interest and fines that you will be forced to pay. There is no escape [...]
