Determining Income Type (Earned and Unearned)

When it comes to filing taxes, the distinction between earned and unearned income is an important one ― especially to the IRS. Read more

Filing an Extension for Your Tax Returns

What Is a Tax Extension?

Tax season can be one of the most stressful times of the year for most Americans, but it doesn’t have to be ― especially not when you can get an extension and buy yourself some additional time to file.  Read more

What Is The Difference Between Standard and Itemized Deductions?

To receive the largest tax break possible, taxpayers should familiarize themselves with some fundamental aspects of completing their taxes, including the difference between standard and itemized deductions. In most cases, you’re allowed to choose either method when filing your taxes, so it’s vital to determine which method is the best fit for your tax situation.

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Resolving Tax Debt for Small Businesses

We hate to be the bearers of bad news, but if you have severe tax liabilities with the IRS, your business could be in serious trouble. Once small businesses begin to accrue tax debt from previous years, they often find it difficult to get back into compliance. The IRS is notorious for their aggressive collection measures and isn’t known for leniency once businesses become delinquent with their debts. Read more

Discharging Tax Debts in a Bankruptcy

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is spelled out in (you guessed it!) Chapter 7 of the United States federal Bankruptcy Code and is also sometimes referred to as “straight” or “liquidation” bankruptcy. In this form of bankruptcy, you might be eligible to cancel some or all of your debts (some tax penalties are also eligible for discharge) or sell your property or assets to repay creditors. However, the bankruptcy court essentially assumes control of your property as well as your debts when you file Chapter 7. In rare exceptions, individuals who file Chapter 7 might still be able to manage their own property and income after they file for bankruptcy. Read more

The Right to Confidentiality

As a taxpayer you have the right to expect that all information you give to the IRS will not be sold to third parties or given to unauthorized individuals. The information you provide is only used in connection with your IRS file unless authorized by you the taxpayer. If an IRS employee, a tax return prepares or the like disclose your personal information you have the right to let IRS know and have them investigated and follow through with an appropriate action. Read more

Don’t Delay! File Small Business Taxes Now to Avoid an Audit

Now that tax season is back in full swing, small business owners need to file their taxes accurately, thoroughly, and on-time in order to avoid an audit or other penalties. In this post, we’ll examine how to do so expediently and without unnecessary stress. Read more

The Right to Privacy

You as the taxpayer have the right to expect that most IRS actions will follow the law, and that it will be no more intrusive into your private life than is necessary. Read more

The Right to Be Informed

The tax world is a complicated one. Navigating the waters of the Internal Revenue manual and the tax code is not something that most taxpayers are equipped to handle. Taxpayers have the right to know what to do to be compliant with the tax laws. If they call the IRS and speak to an agent, or receive something in the mail that needs explanation, they are due to this right. As a taxpayer, you are entitled to clear explanations of the tax law as well as clear directions relating to the tax forms you are completing. An IRS decision made on your behalf must be explained to you so that you grasp what it means and the ramifications of that decision. Read more

Know These 5 Warning Signs of an IRS Levy

If you owe back taxes or have failed to file in years past, then at some point the IRS is going to adopt aggressive collection efforts. Unlike other collection agencies, the IRS can implement and enforce levies to your wages or bank accounts without a court order. Therefore, the best way to resolve a levy is by getting out in front of the problem before the IRS ever takes those steps. Read more