Most people expect to receive a refund when filing their annual tax returns. Particularly when someone is an employee, they expect their employer to make tax payments on their behalf. They can then reconcile their tax contributions with an income tax return. The...
Tax Law
Can someone facing tax issues qualify for innocent spouse relief?
Spouses often find creative ways to share marital responsibilities. It is common for each spouse to assume certain obligations related to the household in addition to whatever economic contributions they might make. For example, one spouse might manage the household...
What typically happens during an IRS audit?
The Internal Revenue Service (IRS) receives millions of tax returns every year from both individuals and businesses. The IRS must review the calculations and disclosures of individual taxpayers to validate that they paid the appropriate amount in income taxes. It...
IRS targets wealthy who have “cut corners” on taxes
The Internal Revenue Service (IRS) recently stated that it is going to focus its efforts on millionaires who may have used illegal tactics to avoid their tax obligations. The announcement was part of the agency’s recent news release outlining a focus on “restoring...
What kinds of things can increase your chances of being audited?
The potential of an IRS audit looms over taxpayers throughout the country when they submit their tax returns. In reality, the chance of being audited is very slim. For fiscal year 2022, fewer than half of 1% of all tax returns were audited. Still, no one wants to be...
What is an offer in compromise?
When someone has a substantial outstanding tax debt, the IRS may allow them to use an offer in compromise. This opportunity isn’t be offered to everyone, and its availability is decided on a case-by-case basis. But it can be a tactic to resolve the tax issue for both...
What the IRS does when someone doesn’t file or underpays
Most people resent the obligation to pay federal income tax, but doing so is a legal and social necessity. The desire to minimize taxes and even to avoid them is perfectly normal. Quite a few people wait until the very last moment to file their tax returns or pay what...
What do you need to know about tax liens and levies?
Tax liens and levies are legal actions taken by the government to collect unpaid taxes. Although both are used to enforce tax collection, they function differently and result in distinct consequences for taxpayers. Anyone who’s facing the possibility of these serious...
5 income tax issues that are actually fraud
Keeping up with current tax laws is challenging, but it’s necessary for those who plan to do their own taxes. Even if you use a professional tax preparer, you must still ensure the information you provide to them is accurate. There are some tax issues that are...
How does the Paycheck Protection Program work?
In 2020, the CARES Act created Small Business Administration’s (SBA) Paycheck Protection Program (PPP) , which provides short-term and low-interest loans for eligible small businesses to cover business-related costs such as payroll expenses and certain operating...