Blogs

Taxpayers often get into tax debt due to not filing taxes on time. Missing the filing deadline can lead to trouble for taxpayers because the IRS punishes any non-compliance, be it intentional or not, with penalties. In the case of IRS debt, taxpayers must avoid IRS collection actions, such as a tax levy.Taxes cannot be... Continue reading →

It is during tax season that taxpayers can resolve their back taxes and get back into the good books of the IRS. Taxpayers can file their past tax returns to potentially reduce their tax debt. In cases where taxpayers need to negotiate with the IRS, they may require the help of tax lawyers, enrolled agents,... Continue reading →

The IRS tried to make it mandatory for tax preparers to have a PTIN (Preparer Tax Identification Number), but a judge ruled that the IRS didn’t have the authority to do so. Tax Defense Network advises taxpayers to be careful when choosing a preparer to file their taxes.Taxpayers complain that some tax preparers advertise low... Continue reading →

Every year millions of taxpayers fall victim to tax scams. In cases of identity theft, taxpayers usually find out about fraudulent tax returns filed on their behalf only after the IRS rejects their tax return. The IRS is struggling to deal with millions of false tax returns every year. The IRS tries to inform the... Continue reading →

Due to the recent changes in the country’s economy, more and more people are becoming self-employed, running businesses from their homes. It gives an opportunity for unscrupulous tax preparers to falsify information on their tax returns to gain big refunds.Self-employed should be wary of tax preparers that try submit false information on their tax return,... Continue reading →

Paying taxes may hurt, but not paying taxes can hurt even more. Taxes may be voluntary, but there are penalties for not complying. The IRS has the legal right to seize and sell a taxpayer’s property and/or assets if they fail to pay taxes.The simplest method to resolve IRS debt is to pay the entire... Continue reading →

There are various methods to pay IRS tax debt. Some include, a Full lump sum payment, an Offer in Compromise, an Installment Agreement, a Partial Payment Installment Agreement and Currently Not Collectible. Apart from payment of the entire tax debt in a single payment, all other payment plans require negotiation with the IRS.The IRS considers... Continue reading →

Unintentional mistakes in a tax form can attract penalty up to 20 percent, depending on the severity of the mistake. Tax fraud, on the other hand, can result in penalties and/or jail time. The IRS can spot an honest mistake in a tax form as opposed to intentional “mistakes” because intentional theft usually aims at... Continue reading →

Billions of dollars in taxes are lost every year because of tax evasion. Even though tax evasion is present among individual taxpayers, it is the wealthy that abuse the system and hide their income in overseas accounts or tax havens.To curb tax evasion, the U.S. government introduced FATCA, the Foreign Account Tax and Compliance Act.... Continue reading →

In most cases, taxpayers intentionally avoid getting into tax debt, but sometimes IRS debt comes as a surprise. Tax filing inaccuracies, identity theft, or tax fraud by tax preparers can result in a tax debt that taxpayers become aware of only after receiving an IRS notice.It is important for taxpayers to begin exploring ways of... Continue reading →