An Offer in Compromise can be an effective way for individuals and businesses to settle federal tax debt. This federal program allows taxpayers to enter into an agreement, with the IRS, that settles a tax debt for less than the full amount owed. Sometimes taxpayers are able to settle for significantly less, especially if they have low…
Starting this week, the Internal Revenue Service is sending letters to more than 9 million individuals and families who appear to qualify for a variety of key tax benefits but did not claim them by filing a 2021 federal income tax return. Many in this group may be eligible to claim some or all of…
Time is running out. The October 17 filing extension deadline is just days away. Most taxpayers who requested an extension of time to file their 2021 tax return must file by Monday to avoid the penalty for filing late. This year, the IRS received about 19 million requests for extensions to file until October 17…
An IRS online account makes it easy for people to quickly get the tax planning info they need. With the same ease that taxpayers have when banking online or placing an online shopping order, they can log in and get the latest on their payment history, balance, and more. Taxpayers can view information about their account including:…
Your Rights as a Taxpayer Tax fairness means the tax system is equitable to all citizens. This is not just a concept – it is the law. The right to a fair and just tax system is one of the 10 rights in the Taxpayer Bill of Rights, which clearly outline the fundamental rights of every…
The Automated Underreporter (AUR) program is an important part of compliance efforts at the Internal Revenue Service (IRS). Most people are aware they could be audited by the IRS. The thought of an IRS audit creates a picture of a taxpayer sitting across a desk from an IRS examiner along with stacks of financial documents.…
One of the most common elements of a fraudulent income tax return is a claim for unqualified dependents. So—who can you claim? There are important tax benefits available for taxpayers who support dependents. Although the benefits have changed in the past few years, you may be eligible for tax breaks related to children, child care,…
So, we are all on the same foot, amending your tax return is basically sending the IRS a new tax return, correcting errors made on the last tax return you filed for that year. You technically can amend more than once, but it is generally not advised. The way the IRS communicates when ‘should’ one amend…
The Internal Revenue Service (IRS) will receive a significant increase in funding with the passing of the Inflation Reduction Act, potentially leading to an increase in its compliance and enforcement capabilities. Although the IRS has continuously been criticized by both Congress and American citizens for mismanagement and poor customer service, the increase should help alleviate…
The IRS transaction code 806 will appear on your tax transcript to show the total amount of federal income tax withheld from your paycheck throughout the year that was reported on forms W-2 and 1099’s. Once your tax return has been accepted by the IRS and added to the IRS Master File for processing. The…
