It’s important to know how much you owe the IRS when you have tax debt problems. You may have balances from several tax years, and the balance owed may increase every month due to penalties and interest. There are several ways to find out how much you owe. The easiest...
Back Taxes and Tax Debt
HOW TO REQUEST A REVERSAL OF IRS PASSPORT ACTIONS
IRS passport actions are a relatively new enforced collection tactic used by the IRS. If you have delinquent tax debt and meet certain other conditions, the IRS can inform the State Department of your tax debt problems, resulting in a passport revocation or a denial...
DOES IRS TAX DEBT EVER EXPIRE?
The statute of limitations on the collection of IRS tax debt is generally ten years. After the Collection Statute Expiration Date (CSED) passes, the IRS can no longer enforce the tax debt. The ten-year period begins once the tax is assessed. Tax assessment can occur...
WHAT TO DO IF YOU OWE DELINQUENT SELF-EMPLOYMENT TAXES
Self-employment offers many benefits. It also involves more complex tax compliance requirements, which causes some taxpayers to fail to pay their self-employment taxes. What Are Self-Employment Taxes? Self-employed taxpayers must generally pay 15.3% of their income in...
5 WAYS TO RESOLVE YOUR IRS TAX DEBT
Every tax resolution case is unique. There are many ways to resolve your tax problems, but you need to find the right strategy for your case. If you’ve been dealing with IRS notices and a growing unpaid balance, consider any of these 5 ways to resolve your IRS tax...
IRS BACK TAXES FOR VIRTUAL CURRENCY TRANSACTIONS
This summer, the IRS will send letters to over 10,000 taxpayers who were involved in virtual currency transactions. These letters are merely meant to be educational—informing the taxpayers that they may have failed to report income and pay taxes from their virtual...
CAN A BUSINESS SUBMIT AN OFFER IN COMPROMISE?
Business—including partnerships, LLCs, and corporations—may qualify to submit an Offer in Compromise (OIC) to settle their IRS tax debt. However, expect the IRS to carefully scrutinize your finances before your OIC will be accepted. Your offer must be at least as much...
HOW MUCH TAX DEBT CAN YOU SETTLE IN AN OFFER IN COMPROMISE?
The IRS Offer in Compromise (OIC) program can be used to settle tax debts for less than what you owe. The most important factors in your offer will be your reasonable collection potential and the amount of your offer. If your offer exceeds your reasonable collection...
WILL THE IRS LEVY YOUR ASSETS IF YOU HAVE AN INSTALLMENT AGREEMENT?
The IRS generally won’t levy your assets or garnish your wages while you are paying off your tax debt with an installment agreement. However, you must meet all the terms of your installment agreement to avoid a potential payment plan default. Permitted Collection...
WHAT COLLECTION ACTIONS CAN THE IRS TAKE?
The IRS is one of the most powerful creditors a person can have under U.S. law. There are many types of collection actions that the IRS may take that an ordinary creditor would not be allowed to. If you owe the IRS money, you may be at risk for any of the following...