making an appointment for tax audit representation

How to Find the Right Tax Audit Representation

Most taxpayers will never get audited. In 2021, the audit rate for taxpayers with income under $1 million was less than 1 percent. But tax audits have a reputation that precedes them, and getting an audit notice in the mail is enough to make a person’s blood run cold. If you’re one of the unlucky few, you may not know what to expect from an IRS tax audit or state audit.

Read more

cp2000 notice

What Does a CP2000 Notice From the IRS Mean for You?

Getting mail from the IRS can be a headache for even the most stalwart of taxpayers. However, a CP2000 notice is a fairly common, auto-generated letter that is typically not too troublesome to resolve. Basically, when the system finds a mismatch between your reported income and the income listed on your tax return, it generates a CP2000 letter to notify you of the discrepancy and provide a proposed solution.

This notice does not mean you are being audited. While one of the most common reasons for an IRS audit is underreporting income, an audit notice is different from a CP2000 notice. For Americans with income under $1 million, the audit rate is less than 1%, so audits don’t happen very often. While it’s a very good idea to enlist the services of a tax lawyer for an audit, you may be able to resolve a CP2000 notice on your own.

Read more

tax fraud jail time

Is Tax Fraud Jail Time Still Sentenced?

Al Capone, the notorious gangster and bootlegger, knew that image is everything. His charismatic demeanor and charitable donations kept him in favor with the public, despite his violent crimes and ruthless corruption. However, no amount of charisma could ultimately save him from the IRS.

The Prohibition-era crime boss was brought down and imprisoned for tax evasion – not murder, not robbery, not bribery, not operating illegal saloons, but evading his income taxes.

Of course, that was the 1920s. Things are different today!

Life has certainly changed profoundly in the last hundred years, but tax fraud could still be worthy of jailtime. While not all tax violations result in imprisonment, the IRS will impose heavy fines on those who deliberately avoid paying taxes.

Read more

oic meaning

What Does OIC Mean? 

In 2011, the IRS launched a new program call the IRS Fresh Start Program. That was really a collection of changes to the tax code to make it easier for people to get relief from tax debt and penalties. Since then, the IRS has added occasional updates to allow for easier tax debt relief. Believe it or not, the IRS doesn’t want you to be buried in debt, they’d like to see you solve your financial problems and get a fresh start. 

Read more

what is tax abatement

What Is Tax Abatement?

There are different forms of tax abatement that might ease the burden on a taxpayer, but they have one thing in common: the reduction or elimination of taxes. This makes sense because the legal definition of abatement is a reduction, suspension, or cessation of a charge. 

Read more

how is social security income taxed

When Is Social Security Income Taxable?

Many taxpayers believe that if they are on Social Security (SS), it is not taxable. This can lead to a nasty surprise when they file taxes, since they were not expecting a tax bill. The Social Security Administration estimates that 56% of beneficiary families owe federal taxes on their SS benefits. Is your family one of them?

Read more

tax resolution services

Guide to Professional IRS Tax Resolution Services

Most people expect their only interaction with the IRS to be when they file their annual tax return. And when you receive a written notice from them, it usually isn’t good news. This gives the agency a reputation for being punishing and unforgiving. However, the IRS can be more lenient than you think and resolving tax problems doesn’t necessarily have to be a stressful or scary situation.

Read more

lien subordination

What Is a Federal Tax Lien Subordination?

If you have fallen behind on your federal taxes, your debt can snowball and quickly become unmanageable. Between IRS penalties and interest, your tax debt will start to grow faster than you can find the funds to pay it off.

In order to secure this debt, the IRS may file a Notice of Federal Tax Lien against your personal property or business property. This will make it nearly impossible to sell that property or get any loans.

Read more

bookkeeping tips for small business

10 Bookkeeping Tips for Small Businesses

Keeping up with accounting tasks can be demanding for any company or organization, but it is especially overwhelming when you run a small business and handle the bookkeeping yourself!

To prevent things from getting out of hand, it’s smart to implement a foolproof system that makes sense for your company’s size, revenue, and industry, while also accommodating your busy schedule. You want to use a simple, effective process that allows you to track and record all finances related to your business quickly and easily. This way, all your expenses, invoices, deposits, and other financial information will be neatly stored and accounted for once tax season arrives in the spring.

Read more

penalty abatement

Penalty Abatement Tax Services

The only thing more complicated than filing your taxes is figuring out how to deal with the IRS charging you a tax penalty for an honest mistake. It is very stressful when you’ve filed your taxes in good faith, but the IRS claims you did not properly file or pay. Fortunately, the IRS offers multiple ways to eliminate these fees, depending on your situation.

Read more