Federal tax liens are one of the IRS’ collection actions used to enforce payment for tax debt. Unlike a levy, a federal tax lien is not an actual claim of your property or assets. And unlike a levy, the IRS issues a federal tax claim on everything you own, all at once. The IRS will …
Continue reading “How to Prevent and Remove a Federal Tax Lien”
The federal government requires you to report all income, calculate your total tax liability, and subtract the standard deduction (or any qualifying itemized deductions). However, most states also require you to pay additional state income taxes, which can be complicated. If you live in one state but work in another, you’ll need to fill out …
Continue reading “When to File a Nonresident State Tax Return”
One of the functions of the IRS is to ensure that taxpayers adhere to their tax liability. To that end, the IRS attempts to combat the so-called “tax gap”, an estimated gap in the nation’s total tax liability and the money the IRS is pooling together from estimated payments and withheld taxes. To reduce that …
Continue reading “IRS Statutes of Limitations for Tax Refunds, Audits, and Collections”
While receiving an IRS notice of deficiency in the mail will make anyone’s knees quiver, most tax discrepancies result from honest errors and can be resolved in short order. Here’s what to know. – When the IRS establishes that your tax account owes money – perhaps due to a missed tax payment, an incorrect calculation …
Taxes are simple in concept. A portion of the money you earn will be paid to the government for essential services, including the upkeep and construction of roads and bridges, the defense of the nation, investments in education or work programs, and social welfare. However, what you owe and calculating your taxes can be pretty complicated. …
Continue reading “Tax Credit vs Deduction: What’s the Difference?”
Your tax information is confidential data, and the federal government is required to keep it confidential – which means that if you intend to work with a tax professional, you need to fill out a specific form to allow them to review that information before they can act on your behalf or represent you legally. …
Continue reading “What You Need to Know About Filing Form 8821”