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What can Maryland do If I owe taxes?

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When a taxpayer fails to pay their taxes, the Maryland Comptroller’s office puts them in the collections phase and starts sending letters. If after sending a series of letters the taxpayer still fails to pay or set up a qualifying payment plan or provide a reason as to which they cannot pay, the Comptroller’s office can take action. Read more

Stop the embarrassment Maryland!

Stop the embarrassment Maryland!

Owing taxes is a very personal thing. Most of my clients would never dream of telling their neighbors, family members, and sometimes even their spouse that they owe taxes. The flip side to that coin is the State of Maryland is all too happy to announce to the world that you owe a tax debt. It may stem from a common bookkeeping mistake or maybe a family member was sick and you did everything just keep your head above water. Whatever the reason, your name is now on a list or possibly many lists. So what types of lists and announcements are there? Read more

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Does the State of Maryland have their own Offer in Compromise?

I written many times about IRS Offer in Compromise or (OIC) but not everyone knows that the State of Maryland also has their own OIC. The rules are a bit different but in theory the plans are the same. The taxpayer is unable to pay their full balance and they make an offer.

What types of taxes can be included in a state OIC? Read more

Do taxes go away after 10 years?

Do taxes go away after 10 years?

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The collection statute expiration date (CSED), or the COSED are the time limits the IRS has to collect on your debt. Yes, Federal taxes do expire but Maryland State taxes do not. Federal taxes expire after a ten-year period from last assessment. Meaning that back taxes from 2006 and the IRS’s ability to collect on those taxes does not necessarily expire in 2016. Also, there are certain actions or events that may cause the statute of limitations to stop, hold, or extend. Read more

Is that “Gift” really a Gift?

Is that “Gift” really a Gift?

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Before you get too excited about winning a small jackpot, striking it rich on Jeopardy, or getting your “free” car from Oprah, we want you to think for a moment about the possible tax implications of gambling winnings and prizes. Read more

change audit decisions

Is an audit decision the final word?

change audit decisions
No, an audit is by no means the final word or decision on your tax year in question. There are many alternatives when it comes to getting what is fair in the eyes of the law and the Internal Revenue Manual (IRM). Some other possibilities are listed below.
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The Importance being clear with the IRS

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The IRS and State are notorious for losing things. You may have sent them your W-2s but they lost them. You may have sent your return but they never put it in the system and force-filed you. There have been many “mix-ups” at the IRS but one thing is for sure; if something is missing they are not taking the blame; at least not without a fight. Keeping this in mind, always keep copies of whatever you send them. Always send important items by certified mail and keep good records of dates, times and what you sent.
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Solve Your IRS Problems

How Can I Solve My IRS Problems?

Solve Your IRS Problems

If you are like millions of other Americans, you have had to deal with an IRS matter once in your life. If that is the case you may have asked the question: How do I get the feared IRS off my back? The answer is not a simple one and is different for every taxpayer. Below is some helpful information to get you started in understanding mitigating a tax controversy.   Read more

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Off Season Tax Tips

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Most of us have made it past tax time and are looking forward to the summer. Some of us are still gathering last minute tax items and trying to finish up before October. I thought I would share a few off season tax tips that can help prepare you for a profitable 2016 Tax Year.

Create your tax strategy

Summer is a great time to go over your budget. Figure out the timing of your end of year bills. Maybe you will start saving for your property taxes over the summer so you can pay them off in 2016 instead of the beginning of 2017. Do you have a 401k or like account that you want to make sure you maximize your contribution? Summer is a great time to run those numbers. Maybe there is room in the budget for some charitable donations. Do a little spring cleaning and find old items to donate to charity. Remember to get good receipts.

Review your portfolio

Make sure you are paying yourself and making your money work for you instead of against you. Have a meeting with your financial advisor and make sure your investments meet the appropriate risk factors; you may find this annual tune makes a big difference.

Look into HSA or like plans

With the new requirements on health insurance, you will hear many people complaining about the hike in premiums. It may be in your best interest to get a health savings account (HSA) for the tax benefits as well as the yearly savings on medical items too expensive to pay out of pocket.

Get organized

If you have a business and don’t already have Quickbooks, now is a great time to take a seminar and learn one of these accounting programs. Accounting software can provide a world of information on how your business is running and also make things easier on your accountant come tax time. If you are an individual taxpayer, start organizing your receipts and making sure you are keeping organized and appropriate records.

Don’t let summer pass you by without putting in some work on your finances. If you take a little time each day to be proactive, your tax season should be much easier and you may wind up with a nice refund.

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How can I get more time to pay my IRS bill?

We live in a pay as you go tax system. If you are a W2 employee, your taxes are taken out with each paycheck. If you receive 1099s or own a business you should make estimated tax payments quarterly. However, things do not always work out this way. This year we have an expected 28-million taxpayers who will owe for the 2015 tax return. What can you do if you can’t afford to pay? Well, an ETP might be a great option for you.

Do you need a little more time to gather the money?

If you are unable to pay your IRS balance by the due date and have received a notice of deficiency or similar notice, you may be eligible for getting an extension of time to pay. That’s right! There is a program out there that gives you a FOUR MONTH EXTENSION TO PAY!! If you need a little more time than that, this may still be a good option for your situation. Using an ETP along with another alternative arrangement to start streamlining payment arrangements could be just the tool you need to resolve your IRS balance.

Pros of using an ETP

  • Gives you time to gather funds and avoid liens and levies
  • This may be a tool to use to release current liens and levies
  • No Fee to set up this qualifying agreement
  • Can be used in conjunction with a First Time Penalty Abatement
  • Avoid having to make a financial disclosure to the IRS
  • Can be used to get balance below 50k then streamline
  • Can be used to get balance down and then enter into another program
  • Can work for individuals as well as businesses

Important!

Keep in mind this does not stop the interest and penalties from hitting your account, it just provides you some extra time to get the balance owed. Sometimes taxpayers would rather pay around 4% just to have some breathing room. Also, after you get the balance down, if your record is clear for the last few years you may be eligible to abate some of the penalties.

If you have questions about this or other alternative arrangements on an IRS or State bill, please feel free to call (410) 727-6006 or click the below button to discuss your eligibility.