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Any amount of taxes that remains unpaid after the filing deadline is treated as tax debt by the IRS. This is irrespective of whether you have filed your tax return or are making payments to fulfill the tax debt under a payment plan. How the IRS Estimates Tax Debt If a taxpayer does not file…

The IRS will be holding free webinars for small businesses in an effort to educate business owners about how they can avoid mistakes and stay compliant with the tax laws. Small businesses can use these webinars to gain information on taxes directly from IRS agents. Below are the details of the two upcoming webinars for…

Paying back taxes is a rather simple process if the taxpayer in debt is capable of handing over the entire back taxes amount to the IRS. If you wish to pay less in back taxes, there are IRS plans and relief programs that you may qualify for. Back Taxes Relief: Reduction or Removal of IRS…

When planning your taxes for this year, you can manage your savings and expenditures in such a way that you pay less in taxes. You can reduce your tax bill considerably by using credits and deductions smartly and by making investments where they provide you the maximum benefits. CNN Money shares some valuable tips on…

Any amount of tax debt attracts interest and penalty from the IRS. The day after the filing deadline, the IRS treat unpaid taxes as tax debt and begins to charge penalties on it. The penalty on unpaid taxes is a fee charged each month. For failure to pay taxes on time, the IRS charges 0.5%…

The strict tax compliance rules of Foreign Account Tax Compliance Act (FATCA) have lead more U.S. citizens living abroad to renounce their U.S. citizenship. After the IRS began to aggressively pursue tax evaders, many U.S. citizens living abroad found their tax troubles increasing. Under FATCA, the IRS demands the disclosure of financial information not only…

Taxpayers who have tax debt should make early efforts to resolve it for three reasons: first, it will reduce the interest they pay on the taxes owed. Second, it will reduce the penalties they need to pay on back taxes (the IRS charges penalties every month until the tax debt is not paid in full)….

In its annual study, the National Taxpayers Union (NTU) has shared its finding that the U.S. economy lost $224 billion and 6.1 billion hours due to the burden of compliance with the tax code. The complexity of the tax code forces most taxpayers to hire help for tax preparation and those who prepare taxes themselves…

If you were required to file taxes for 2013, but for some reason, you could not pay before the April 15th filing deadline, you are under tax debt. Owing taxes to the IRS after the filing deadline attracts penalty and interest. Even if you have filed for an extension and not paid an estimate of…

The tax filing season will end on the midnight of April 15th. If you think you might not be able to file your taxes before the April 15th deadline, it is advisable to file for a six-month extension to file. To date, the IRS has received 100 million tax returns and is expecting to receive…