The IRS is developing a “Future State” plan that it says will transform the way the service interacts with taxpayers. Many parts of the plan may ease the processing of filing returns, the issuing of refunds, and the identification and resolution of problems. But the Tax Advocate Service – an independent part of the IRS that defends and assists taxpayers – warns … Read More
What To Do If You Owe the IRS
Do You Owe the IRS? Not everyone gets a refund. Many taxpayers owe money. It is important to make sure you file timely even though you may not have the money to pay to avoid late filing penalties. There are a number of ways to pay your tax: Check or money order IRS Direct Pay (New in 2014): You can now pay … Read More
10 Questions to Ask a Tax Preparer Before Hiring
The key, as with hiring any professional, is to ask lots of questions. And not just about how much it’s going to cost. Lots questions also apply when hiring a tax preparer. Here’s a list of 10 questions you should ask before hiring a tax preparer: Do you have a PTIN (preparer tax identification number)? Anyone who prepares federal tax … Read More
Unfiled Returns and Back Taxes? Read This.
We all know the annual ritual: once January rolls around, you gather your tax documents to file your tax returns by the deadline to avoid back taxes and unfiled returns. Sometimes (or maybe the whole time!) you need an extension. And maybe you don’t meet the extended deadline, and now your return is late and unfiled. The next tax season … Read More
Five Key Tax Tips for New Businesses
If you start a business, one key to success is to know about your federal tax obligations. You may need to know not only about income taxes but also about payroll taxes. Here are five key tax tips for new businesses that can help get off to a good start: Business Structure. As you start out, you’ll need to … Read More
How to Prevent Income Tax Refund Fraud
How do you know if someone has filed a tax return using your Social Security number to commit income tax refund fraud? And what do you do then? This is happening all the time—the latest General Accounting Office (GAO) report says that IRS paid out over $5.8 billion in fraudulent returns in 2013. The IRS does have security measures in … Read More
2016 Tax Changes: A Checklist
Welcome, 2016! As the New Year rolls around, it’s always a sure bet that there will be changes to current tax law and 2016 is no different. From health savings accounts to retirement contributions and standard deductions, here’s a checklist of tax changes to help you plan the year ahead. Individuals For 2016, more than 50 tax provisions are affected … Read More
Six New 2015 Tax Breaks
The Protecting Americans from Tax Hikes Act of 2015 is a long-awaited legislation which offers a slate of personal and business tax breaks that had expired at the end of 2014. Here’s a quick summary of how the resurrected breaks can affect your 2015 federal income tax return (Form 1040). Option to deduct state and local sales taxes instead of … Read More
Is Forgiven Debt Taxable?
Generally, debt that is forgiven by a lender is considered taxable income by the IRS and must be included as income on your tax return. Examples include a debt for which you are personally liable such as mortgage debt, credit card debt, and sometimes, student loan debt. When that debt is forgiven, negotiated down (when you pay less than you … Read More
6 ways to avoid an IRS audit
Like so many things in life, the tax-filing process has become less ‘human’ and more automated. That means all you need to do is type one key wrong on your computer, and you could be an IRS person of interest. And, with the increase of ‘robo-audits,’ it’s becoming more important to leave no guesswork on your returns, because computers are … Read More
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