Posted on October 7, 2023

Income tax results from a taxpayer’s earnings, while consumption tax is charged on the products and services that an individual purchases. Even though most countries use income tax, this was not always the case. The United States has a history of principally using consumption tax and favoring it over income tax. Some believe that consumption... Continue reading →

Posted on October 6, 2023

Knowledge about tax laws and the tax code allows individuals to reduce their liabilities while increasing their savings. Along with this obvious benefit, taxpayers also learn to avoid owing back taxes by keeping up with tax policy changes. Sometimes, individuals miscalculate their taxes because they’re not aware of the expiration of a tax break. Even... Continue reading →

Posted on October 3, 2023

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 →

Posted on October 2, 2023

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 →

Posted on October 1, 2023

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 →

Posted on September 30, 2023

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 →

Posted on September 29, 2023

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... Continue reading →

Posted on September 26, 2023

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 →

Posted on September 25, 2023

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 →

Posted on September 24, 2023

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... Continue reading →