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The IRS has many tax debt resolution plans that taxpayers can use to resolve their back taxes. Each tax debt payment plan has qualifying factors that taxpayers must meet to be able to resolve their tax debt using them. Some of the commonly used tax debt payment plans are Installment Agreement, Offer in Compromise, Partial... Continue reading →

Resolution of tax debt must be achieved after carefully considering the various options available. For taxpayers that are unable to pay their entire back taxes in a single payment, various IRS tax debt payment plans are available. They allow taxpayers more time to pay, reduction in tax debt, or postponement of payment of tax debt.Some... Continue reading →

When preparing taxes, many taxpayers forget to claim expenditures such as entertainment expenses, expenditures on business meals, and casualty losses. To bring down tax liability, businesses must calculate their entertainment costs, including business meals.Some businesses make the mistake of claiming personal entertainment expenses as business expenses. If large amounts are claimed as entertainment expenditures on... Continue reading →

Sometimes, unintentional errors such as a miscalculation on a tax return can lead to tax debt. To file an accurate tax return, taxpayers must double check all calculations and information provided in the form. Those taxpayers that get their tax return prepared by a preparer must also re-check the information to ensure it is correct.Before... Continue reading →

Payment of taxes on time is not difficult, but sometimes taxpayers make inaccurate payment of taxes due to errors or lack of knowledge of tax laws. Underpayment of taxes, intentionally or unintentionally, can lead to tax debt. Therefore, tax preparation must be done either by a taxpayer who has deep knowledge of tax laws or... Continue reading →

The IRS has the legal power to collection tax debt within the ten year Statute of Limitations. Although the IRS begins collection actions by sending notices regarding the payment of tax debt, if the tax debt still remains unresolved it can move to aggressive collection actions such as tax lien and levy.Under a tax lien,... Continue reading →

The IRS begins collection action by alerting taxpayers about the taxes owed. The IRS sends notices informing taxpayers about the amount of tax debt and how to resolve it. If after receiving multiple notices a taxpayer does not make efforts to resolve it, the IRS proceeds to aggressive collection actions.Tax lien and tax levy are... Continue reading →

The IRS had been trying to curb tax evasion for as long as it has existed, but it was only after the strict enforcement of Foreign Account Tax Compliance Act (FATCA) that evading taxes by using tax havens became difficult. Under FATCA, U.S. taxpayers with overseas bank accounts and assets over a certain threshold are... Continue reading →

Taxpayers must understand the basic IRS rules and tax laws to achieve successful tax debt relief. Even when the help of a tax professional is used, it is beneficial for taxpayers to understand the particulars of their case.Tax debt relief can be achieved through various methods, but not all methods are open to all taxpayers.... Continue reading →

Not being able to pay the full amount of tax debt should not stop taxpayers from seeking a tax debt resolution. There are various IRS tax debt resolution plans that allow taxpayers to resolve their tax debt without paying the entire amount of tax debt. A Partial Payment Installment Agreement or an Offer in Compromise... Continue reading →