Blogs

When taxes aren’t paid on time, the IRS can begin collection actions to get the taxpayer back into compliance. The IRS has several collection methods, including notices, federal tax liens, and tax levies. Using these methods, the IRS ensures they exhaust all efforts in order to collect the outstanding debt.Before taking aggressive collection actions such... Continue reading →

Innocent spouse is an IRS relief program which enables a taxpayer to avoid liability for a tax debt by transferring it to a spouse. When you have a tax debt as a result of a jointly filed return, you and your partner are generally both held responsible. If you had no idea there was a... Continue reading →

Corporate tax evasion has been in the news for a while. When Apple Inc. faced charges of evading taxes by not bringing their profits made overseas to the U.S., the company quoted high corporate tax rate as the reason many multinationals evade taxes legally. Even though this argument is considered to be the reason for... Continue reading →

Even though tax evasion is illegal, but there are plenty of tactics corporations use to reduce their tax liability to zero. One such method is known as tax inversion. Providing excessive bonuses to employees and showing these as legitimate expenditures are another. Loopholes in the tax code provide opportunities for companies to evade taxes legally.... Continue reading →

It’s common knowledge that large corporations with resources legally evade taxes using subsidiaries in countries with lower tax rates. Another method of legally reducing tax liability is to pay employees millions of dollars. That’s how many top companies managed to reduce their tax liability to zero.According to a story by USA Today, an analysis of... Continue reading →

A number of individuals with tax debt use installment agreements to settle their liability in payments, rather than all at once. Even though taking care of the full debt amount in one payment is advantageous, as it minimizes the penalties and interest to be paid, installments tend to be more convenient for most.An installment agreement... Continue reading →

When you’re required to file and pay taxes but don’t, the IRS uses information from your previous tax returns and third party sources to calculate the amount you owe. The IRS then files a substitute tax return on your behalf. It’s important to remember that what the IRS assesses is an estimation of your liability,... Continue reading →

Tax fraud doesn’t just occur during tax season. Fraudsters are finding new ways to bilk taxpayers and you may expect scam attempts during the entire year. The IRS phone scam is a prime example of a current and overwhelming problem. However, by following a few simple tips, you can protect yourself from becoming a tax... Continue reading →

Even though most tax preparers are honest, there are a few that file fraudulent tax returns on behalf of their clients to claim huge refunds. Sometimes, the fraud is conducted without the knowledge of the taxpayer client and sometimes with consent taken through persuasion or deception. There are a few signs that will help you... Continue reading →

In complex tax debt cases or if taxpayers are intimidated about interacting with the IRS, it is wise to use outside help. If a taxpayer can pay the entire amount of back taxes in a single payment, or if the amount of back taxes due is smaller where they have full capability of payment, there... Continue reading →