Do you owe tax money to the IRS? Have you been trying to figure out how you are going to pay your bill? Did you know that ignoring your bill could lead to dire consequences? You need to take action quickly and determine how you are going to pay it. One option is to set up an IRS tax installment agreement. An IRS installment ... Read More
Tax Blog
Should You Borrow From a 401K to Pay Taxes You Owe?
Taking money out of a 401K for something other than your retirement isn't easy, but there are some situations that allow you to access the funds. If you leave a job where you had a 401K plan, you can roll it into an IRA, which gives you different options for accessing the money – but if you're still with the employer you have ... Read More
How a Short Sale Could Lead to a Large Tax Bill
Homeowners who are in the unfortunate position of being “upside down on their mortgage”, a situation that simply means they owe more than the property is worth, might be hard-pressed to think of something that can be worse. This is exactly why homeowners need to be cognizant of all the facts before they make any financial ... Read More
Small Business Tax Penalties: What They Are & When They’re Charged
When the IRS charges your business with tax penalties, you may be shocked at the amount they charge. IRS penalties at times can account for 50% of a tax bill at times. Many of the IRS penalties have their limits but the IRS also does tend to stack some penalties which can lead to enormous tax bills. Understanding the most common ... Read More
Avoiding Penalties From Underpayment of Estimated Taxes
A common tax penalty for self employed individuals is the underpayment penalty for not paying enough estimated taxes. The IRS requires that self-employed individuals must estimate their annual income tax a full year prior to actually knowing what that amount will be. It is very common for individuals to not estimate enough ... Read More
Tax Audit Defense: How to Defend Against an IRS Audit
Receiving an audit notice from the Internal Revenue Service is not something anyone would wish on their worst enemy but the reality is audits do happen and if you are knowledgeable and prepared, you can get through the audit and come out on the other side safely. The best way to start with tax audit defense is to understand your ... Read More
Tax Penalties That Can Be Removed and How to Remove Them
There are a few penalties the IRS charges that can be removed, including the IRS failure-to-file penalty – which is the most common and harshest of IRS penalties - and the failure-to-pay penalty. Failure to File Penalty Many people think that if they can't pay for the taxes they owe, their only option is to hide from the IRS. ... Read More
What If I Have a Tax Lien on My Credit Report? How Do I Remove?
Checking your credit report is the best way to keep abreast of the information being reported to the credit bureaus. The information contained on your credit report can have a huge impact on various aspects of your life, from qualifying for credit or landing a new job. When a tax lien in placed on your property, this information ... Read More
IRS Could Take Refunds for Health Insurance Penalties
The IRS could potentially take personal tax refunds to collect fines from those who do not purchase health insurance in accordance with recent healthcare legislation. Under the new law, most people are required to buy health insurance. If they don’t, they will face harsh penalties. By 2016, those who do not purchase coverage ... Read More
How the New Healthcare Bill Expands IRS Authority
With the new Healthcare Bill, Congress expanded the responsibilities of the Internal Revenue Service and essentially changed the relationship between taxpayers and the IRS. With the new health care legislation, the IRS is the chief enforcer for the new government-operated health insurance system. The IRS will have the authority ... Read More
