Does the IRS forgive tax debt after 10 years? Legally speaking, debt usually does not last forever. There are state-specific statutes of limitations on things like commercial debt, which prevent creditors from suing you for an old debt if the clock has run out. There are a few reasons why debt can expire: first, …
According to the IRS – and tax law – paying your taxes is not optional. Failing to do so means the government can utilize certain methods to coerce payment and downright take your money before it even lands in your account. This is wage garnishment. Other commercial creditors can also garnish wages if certain conditions …
Should you owe the IRS substantial back taxes, they will likely begin to levy collection actions against you and your tax account. In rare cases, this goes so far as to result in the collection and seizure of paychecks and existing assets – yes, the IRS even has the authority to claim the home you …
The money you earn is not necessarily one-to-one with the money you pay taxes on. The IRS provides taxpayers with several means to reduce their tax liability through so-called tax deductions on their income tax return or Form 1040. Of these, there are two kinds: Above-the-line tax deductions, also known as adjustments to income and; Below-the-line tax …
Taxes are close to the last thing on anyone’s mind come to New Year, but the truth is that setting goals for your new tax year are crucially important, especially if you run a business of your own or are self-employed. Taking the time to consider what mistakes you’ve made over the past year, refine your …
The IRS might need more personnel to audit every taxpayer who files a return with an error or a slight mistake, but it does try to investigate as many returns as possible. This results in hundreds of thousands of audited returns each year, representing a fraction of a percent of all taxpayer returns. Thus, your chances of getting audited …