Scams & Alerts

If a married couple files jointly, and a tax debt occurs, a spouse can claim innocence to get relief. Under Innocent Spouse Relief, a spouse must prove they had no knowledge of the understatement of taxes in order to receive relief from the debt. If both spouses had knowledge of the understatement, the IRS may…

Couples who are getting married soon should check the new tax duties. A change in marital status can affect your taxes, including your tax filing status. Couples who are divorcing may also want to update your tax information such as postal address and name too. Changes in name and postal address can be reported to…

The Dirty Dozen Tax Scams for 2013 includes intentional inaccuracies in tax returns, frivolous arguments, disguised corporate ownership, and the misuse of trusts. These methods for reducing a tax liability are illegal and therefore punishable by law. Taxpayers should not engage in illegal means to reduce their tax liability. Tax Refund Scams: Form 1099 Taxpayers…

A study by National Research Council revealed that the current U.S. tax code affects greenhouse gas emissions minimally. Energy-sector tax expenditures that amount to about $48 billion have little impact on reducing greenhouse gas (GHG) emissions. According to the report, “the committee analyzed tax provisions that account for 46 percent of all energy-related excise tax…

Taxpayers with tax debt will usually seek out ways to have their back taxes reduced, but IRS debt reduction programs have strict restrictions that make it difficult for taxpayers to qualify for. Taxpayers who do not qualify for debt reduction plans, such as an Offer in Compromise can use other available methods to reduce their…

After the Apple controversy, the U.S. Congress is currently examining the tax strategies multi-national enterprises (MNEs) use to evade taxes in the U.S. This kind of tax evasion is difficult to enforce because uses loopholes in the tax code to evade taxes legally. The U.S. Congress is examining whether complicated tax strategies aimed at tax…

Taxpayers who cannot afford to pay their entire back tax amount often use an IRS tax debt payment plan, such as an Offer in Compromise (OIC) to resolve their back taxes. Though an Offer in Compromise has strict qualifying factors, the IRS has introduced the Fresh Start initiatives that are aimed at making it convenient…

The debate over the complications in the tax code has turned into discussions over FairTax, the tax reform proposal from Congress that proposed to overhaul the present tax system. The proposal is for the replacement of federal income taxes, payroll taxes, estate taxes and gift taxes for a single tax: consumption tax on retail sales….

It is the wish of every taxpayer seeking back tax relief to get in the most out of their resolution. In March 2012, the IRS began various initiatives to assist taxpayers in achieving a resolution to their tax debt. It is important for taxpayers to understand the nuances of tax debt resolution so that they…

The U.S. and Germany have entered into an intergovernmental agreement (IGA) to improve tax information sharing between the two countries. This is an important step in improving transparency in international financial transactions and curbing tax evasion in the U.S. During the last few months, the U.S. has made significant strides to bring down tax evasion…