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When seeking relief from back taxes, it’s important to consider the penalties that the IRS charges on unpaid balances. The penalty starts at 0.5 percent and reaches a maximum of 25 percent. Tax debt amount increases every month because the IRS charges penalties on the total amount due; this, combined with monthly interest, rapidly increases... Continue reading →

The IRS has various payment plans that are specifically designed to help individuals with different financial conditions resolve their back taxes. Taxpayers that are not financially capable of paying their entire tax debt in a single payment may qualify for an Installment Agreement. There are various kinds of Installment Agreements, each with different resolution requirements... Continue reading →

Knowledge of tax deductions and credits help individuals plan their taxes throughout the year. Some tax breaks are time sensitive and if a taxpayer does not take advantage of them before they expire, they lose the chance to save. Everyone can keep themselves current about the latest deductions by subscribing to online resources that provide... Continue reading →

When calculating your taxes, you need to ensure that you do not claim tax deductions and credits that you do not qualify for. If the IRS processes your tax return and finds that you claimed a deduction or a credit that you aren’t eligible for, they will make the correction and send you a notice... Continue reading →

In an effort to reduce their tax liability, taxpayers can use qualifying deductions and credits. There are various tax breaks available to both taxpayers and businesses. Some of the common ones that millions of taxpayers qualify for are The Earned Income Tax Credit (EITC), and Child and Dependent Care Credit.The Earned Income Tax Credit also... Continue reading →

If you are considering applying for an Offer in Compromise (OIC) to achieve tax debt resolution, be sure to check the qualifications. After you apply for an Offer in Compromise, the IRS will request information on your income (from all sources), liabilities and assets. The information required can vary depending upon the amount of tax... Continue reading →

The IRS follows certain rules and processes when collecting a tax debt. When the IRS discovers that you have unfiled returns, they will likely file a substitute tax return on your behalf to ascertain the amount you owe. If you filed a tax return and the taxes due were not paid, then the IRS will... Continue reading →

Tax evasion cannot be completely halted, but it can be limited. The Obama administration has been taking bold steps to control tax evasion, both legal and illegal. Although the latter is being controlled through the implementation of the foreign account tax compliance act (FATCA), restricting tax evasion conducted through legal means is more difficult.The Obama... Continue reading →

Tax evasion is defined as the illegal non-payment or underpayment of tax. Though this definition can be expansive, it is also simplistic. Tax evasion is conducted through various legal and illegal methods, including hiding income overseas, through tax inversions, understating income and by hiding funds in fake trusts and organizations.Tax evasion is not always conducted... Continue reading →

Tax inversion is a method of legal evasion that entails relocating the company’s headquarters to a tax haven or a country with lower tax rates. Many companies also use mergers with the intention of drastically reducing their tax liability in their own country. They do that by undergoing a merger with a company that operates... Continue reading →