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A woman working on her taxes on a computer

Take Advantage of the IRS’ First-Time Penalty Abatement Policy

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Filing and paying state and federal taxes can be complicated, inconvenient, and unnerving. Deadlines can be hard to remember and even harder to meet. And since state and federal tax law is constantly changing, it’s nearly impossible to keep up.

With all this confusion and bureaucracy, failing to file and pay your taxes is an understandable mistake—and one that is easy to make.

If you’ve missed a filing or payment deadline, you’re probably subject to penalties. But you could be eligible to waive these fees if you meet certain criteria. Keep reading to learn more about the IRS First Time Penalty Abatement program and how it could improve your tax situation.

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crypto and irs questions

Crypto and IRS: How Will My Cryptocurrency Sales Affect My Taxes?

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Cryptocurrencies (also called altcoins or virtual currency) have seen some wild fluctuations in the recent past. For example, the value of a single full Bitcoin went from $10,000 to nearly $70,000 and then back down to $20,000, all within the span of two years.

Some people have realized huge profits and others have lost thousands (or more), but not everyone has considered the tax ramifications of those sales. The Internal Revenue Service considers cryptocurrencies to be property. That means a variety of taxes likely apply to your altcoin transactions, whether you sell your virtual currencies or use them to pay for goods or services.

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Tax-Related License Hold

Need Help Releasing a Tax-Related License Hold? S.H. Block Tax Services Is Here to Help

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Every day, millions of Maryland residents rely on their state-issued drivers’ and business licenses to earn a paycheck, take care of their families, and have fun during their free time. Our cars, trucks, motorcycles, and professions enrich our lives and allow us to prosper as productive members of our communities.

Still, operating a business or vehicle in Maryland is a privilege that you should never take lightly, especially since our state government can revoke that privilege at any time. In recent years, the IRS and the State of Maryland have undertaken more aggressive collection efforts, and they know license holds are an extremely effective tactic. If you owe outstanding taxes or have failed to file your personal or business returns in recent years, this initiative could directly affect you.

Keep reading to learn how S.H. Block Tax Services can help lift your tax-related license hold by minimizing or even eliminating your tax liability. Read more

Tax Extension

An Extension to File Your Taxes Is Not an Extension to Pay Your Taxes

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An Extension to File Is Not an Extension to Pay — Contact S.H. Block Today to Resolve Outstanding Liabilities

If you requested an extension to file your taxes last spring, you weren’t alone: the IRS estimates that more than 11 million people applied for an extension to file their taxes in 2017. Yet despite so many taxpayers choosing this option, our team at S.H. Block meets dozens of clients every fall who don’t understand what their approved extension means and how it could lead to additional penalties and interest that increase the overall tax debt.

Keep reading to learn about how these extensions work and what to expect as you prepare for the late-filing deadline on Monday, October 15. Read more

Currently Not Collectible

Are You Eligible for Currently Not Collectible (CNC) Status?

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If you owe the IRS or State of Maryland back taxes but are unable to pay them because of other financial obligations, you might be eligible for Currently Not Collectible (CNC) status. CNC status is a special designation which gives taxpayers a temporary hold on collections, during which time they are “protected” from collection efforts.

Keep reading to learn more about Currently Not Collectible status, your potential eligibility for the program, and how to request CNC status. Read more

Common Tax Scams

Protect Yourself From These 5 Common Tax Scams

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Tax scams are one of those misfortunes that most people believe they’ll never have to deal with. Unfortunately, these scams are far more common than you might think, and they can affect many aspects of your life, such as your bank account, your credit score, and even your personal property and business assets — among several others.

Every year, the IRS releases a list of the 12 most common current tax scams, which they refer to as “The Dirty Dozen.” In this article, we’ll review the top five scams on their list for 2018, explain how they work, and provide helpful tips to keep you, your family, and your business safe and secure. Read more

Substitute Return

Did You Know the IRS Can File a Substitute Return on Your Behalf?

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If you fail to file your tax returns for one or more years, you might get an unpleasant surprise and find that the IRS has filed a substitute tax return on your behalf. When the IRS or State of Maryland decides to do this, they simply base the substitute return on whatever information they have at their disposal.

Unfortunately, when a taxation entity, the IRS, or State of Maryland files your return for you, they won’t bother to look for the best deductions and write-offs. And in some cases, their computer programs might even overstate your tax liability. Read more

tax fraud

What Is the Difference Between Tax Fraud and Negligence?

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Every year, millions of Americans feel a twinge of worry and doubt when they finalize their tax returns with their signature and e-file or mail them to the IRS and their state government.

Their anxiety is justified, as seemingly minor mistakes can land taxpayers in serious hot water, even after filing an amended return. These errors, omissions, and typos could potentially lead to an audit, severe fines, or even jail time, so it’s important that you fill out your taxes accurately and file them on time. Read more

How to Secure a Home Loan When Dealing With a Tax Lien

How to Secure a Home Loan When Dealing With a Tax Lien

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In most cases, mortgage lenders are willing to look past certain types and amounts of debts. However, when it comes to tax liabilities, things can get complicated in a hurry. If you’re behind on your federal income taxes, the IRS might place a lien on your property and assets, which can be especially concerning for lenders.

Thankfully, there are certain actions you can take to eliminate your tax issues and move forward with the home of your dreams. Read on to learn more. Read more

Income Tax Payment Options Explained

Income Tax Payment Options Explained

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If you filed your income taxes and discovered that you owe the IRS or the State of Maryland, you have several options when it comes to repayment, even if you can’t pay the entire sum at once. (If you haven’t filed yet, be sure to do so before the April 17 deadline, as failure to do so may result in penalties and interest).

Keep reading to learn more about your tax repayment options. Read more