IRS Tax Help Blog

Owing the IRS back taxes is a scary situation, considering the power the IRS has to garnish your wages and place liens against your property in order to satisfy the debt. However, they generally are willing to work with you to create a payment plan that you can afford. In fact, entering into an installment agreement is an effective way of dealing with your tax debt that eliminates the possibility of the IRS ramping up collection efforts against you.

In order the enter into a payment plan agreement, you will need to contact the IRS to make the arrangements. It is best if you do this through a qualified attorney, rather than trying to negotiate with the IRS on your own. Make sure the attorney you select has experience in dealing with tax debts and the IRS, and that they are authorized to represent you in US court. Ideally your case will not need to go before a judge, but you do not want to have to change attorneys if the need arises.

Your attorney will review your case and determine... ...read full post

Hurricane season is coming and in Florida it is wise to be prepared. Your tax documents are very important and not easy to reproduce if needed. It is a good idea to establish backup records. This backup should be stored in a safe place separate from the original documents. It is helpful to have a backup electronic copy. Even if you have paper tax returns you can scan them and put them onto a digital storage device such as a thumb-drive or a DVD.

If a disaster does strike and affects your tax records, you can call 1-866-562-5227 to speak with an IRS specialist trained to handle disaster related problems. Here is an article discussing general home preparations for hurricane season: http://articles.sun-sentinel.com/2012-06-01/news/fl-readers-view-hurricane-season-20120601_1_national-hurricane-preparedness-week-hurricane-season-storm... ...read full post

If you are a working parent and you incur child care expenses during the summer months when your kids are out of school, these expenses may qualify for a tax credit. (This tax credit is also available for childcare expenses  year round.)

In order to qualify for the tax credit you must have earned income from either wages or self-employment. If married filing jointly, your spouse must also have earned income. If the spouse is a full-time student or unable to care for themselves due to mental or physical issues, you can still qualify. The child(ren) for which you are paying childcare for must be under 13 years old and must be claimed as dependent(s). The childcare expense can qualify whether it is in-home care or at a daycare facility. Expense for overnight camps or summer tutoring do not qualify. You cannot include the cost of care provided by a spouse or other dependent. It is important to keep your receipts and records to document this expense.
For more details on the child care tax credit see: http://www.irs.gov/uac/Ten-Things-to-Know-About-the-Child-and-Dependent-Care-Credit... ...read full post

Tax problems are a personal issue. People who fall behind in filing or paying their taxes may feel scared and embarrassed. This is why I believe the most important aspect of what I do- even before we dive into your tax situation is to build a relationship based on trust. I realize you come into my office not knowing me and you are probably upset and scared about your situation. I sit down with you and find out exactly what brought you to my office and I tell you exactly what you need to do to resolve your problem and get on with your life. I tell you upfront what you can expect from me and what I expect from you. I will give you a clear understanding of where you stand with the IRS and where things stand throughout your case.

Just the other day I met with someone who had several unfiled returns. After talking with me they stated how relieved they are to have found me. They said hiring me makes them feel much better and it takes a heavy burden... ...read full post

One of the biggest scams going on right now in regard to taxes is identity theft. In Florida this is a huge problem. People are filing tax returns under the name and social security number of another person and claiming refunds from the IRS. When the rightful person then files their real return, the IRS refuses to accept it, saying someone has already filed under that name and social. If this happens it is important to act quickly. You need to file a report with the local police or sheriff and present that to the IRS along with a paper tax return. (You may not e-file in this situation.) You have to go through the process of proving who you are.

Another scam is receiving an email from the IRS. The IRS NEVER sends out emails. If you get an email from someone appearing to be the IRS, DO NOT open it. This is a scam and one way identity thieves try to get your personal information. The IRS can call you and they will if you haven’t filed or paid your tax returns, or a revenue officer may even come to your door, but they will never email. If you... ...read full post

Now that tax season is over, what should you do if you missed the April 15th deadline for filing? First and foremost you need to file as soon as possible. The longer you wait to file the more interest and penalties will accrue if you owe taxes. You won’t be penalized if you file late and you are getting a refund, but...why would you want the government to hold onto your refund? Obviously, most people won’t do that! If you owe taxes and don’t file please understand this is a felony. This means that criminal charges can be filed against you.

The penalty for filing late is approximately 5% of the unpaid taxes you owe for each month (or part of the month) the tax return is late. So if you owe $10,000 your first penalty for the month is $500. Not only is there a penalty for failing to file, there is an additional penalty for failing to pay. This penalty is one half of one percent of the unpaid taxes. Most of my clients are appalled when they learn about the severity of these penalties.

Another issue I want to clarify is regarding extensions. A lot of people think that... ...read full post

Those who have received word from the IRS that they owe backed taxes are likely going to panic. They will not know at first what it is that they are supposed to do. With that in mind, many will find that they would like to have some legal help to get the IRS resolution that they require for their situation.

Negotiating with the IRS is something that no one should attempt to do completely on their own. Making this decision is one that most would later come to regret. They simply do not have the tools or the knowledge to make it a fair fight with the IRS. Thus, they could end up losing that battle, and that would be devastating to their financial situation and possibly to other parts of their life as well.

Instead of all of this, many feel that it is a better idea to hire someone who has experience fighting for their clients against the IRS. Those legal experts are kind and... ...read full post

Have you recently discovered that the government has placed an IRS tax lien on your bank accounts as a result of back taxes that they claim you owe to them? If so, then you may understandably find yourself feeling panicked, especially if you are having trouble paying bills or meeting other financial obligations as a result of this bank lien.

However, regardless of your specific tax situation, the good news is that you do have options for assistance. In fact, the best thing that you can do for yourself at this point is to hire an experienced and dedicated tax defense attorney.Many people operate under the false assumption that, in order to receive help from a tax defense attorney, you must be completely innocent when it comes to your taxes. However, this is far from the case. In fact, most reputable tax attorneys will work with people who are fully aware that they have underpaid or even failed to pay entirely on their taxes; the key to having an attorney in such situations is that, by... ...read full post

If you owe money to the IRS, chances are that you will end up paying more than just the amount of back taxes that you were assessed for. IRS penalties and interest charges can add a considerable amount to your debt. Penalties and interest charges together usually reach about 2% per month. Over a year, this means you will pay roughly 24% more money. You should also be aware of how the IRS processes payments and refunds for those who have tax debt. Any credit will be applied to penalties and interest first, before reducing the original amount of the debt.

Those who have chosen to take an installment agreement with the IRS, allowing them to pay their back taxes over a period of time will end up paying a large sum just to cover the interest and penalties. But there are a few ways around this situation:

You can opt to get a loan to pay off the IRS. Even if you have a poor credit history, most banks will charge you less interest than what the IRS... ...read full post

Of the things Americans fear, few are worse than the dreaded IRS audit. An audit is an inquiry into a tax return made by the Internal Revenue Service. The IRS has a three year window in which to audit a return, leaving many people, especially individuals who self-filed, feeling constantly on edge. There is a method to the madness, however. While the process may seem random, many IRS audits are specifically singled out due to suspicious deductions, activity or income levels. Here are several entries on a tax return that might pique the attention of the IRS.

Filing a Schedule C, a form used for noting profits and losses from business, can occasionally be a red flag. While the form itself won’t attract attention, how it’s used might. If you have taken substantial losses more than three out of the last five years on a home business, you might be triggering an audit. This risk is amplified when a taxpayer takes a home office deduction in conjunction with business losses.

Large charitable deductions also commonly... ...read full post