A tax refund is the amount refunded if the tax paid exceeds the tax liability. In other words, if you qualify for a tax return, you will get back the excess amount paid as taxes in the previous year. Employers withhold taxes, per the W-4 form. If the amount withheld is in excess of the…
As lawmakers pushed their tax overall package in 2017, Republican leaders would sometimes display a tax form printed on a postcard as proof that the Tax Cuts and Jobs Act would simplify life for millions of Americans come April 15. President Trump boasted that the postcard would enable Americans “to file their taxes on a…
If you owe the IRS a substantial amount, be sure not to ignore it. Review options such as installment agreements, extensions, or personal loans, and always seek legal advice from a professional tax attorney. While you may want to put off dealing with tax debt and that sinking feeling that you owe the IRS, not…
What happens when the IRS Offsets Your Tax Refund? If you get a notice or status of an offset, your tax refund is going to be seized and put towards the debt you owe to the IRS or another government agency. As part of the Treasury Offset Program (TOP), your tax refund checks are matched…
The first reaction by most taxpayers when they find out they are being audited by the IRS is crippling fear. An audit occurs when the IRS has reason to believe that the tax you paid is not what should have been collected. The IRS wants to investigate how you calculated your tax due for the…
Taxpayers with expiring individual taxpayer-identification numbers should renew their numbers ASAP. There are nearly 2 million ITINs set to expire at the end of 2019. Taxpayers with an expiring number should renew before the end of this year. This will help avoid unnecessary delays related to their tax refunds next year. ITINs are used by taxpayers required…
The IRS relies heavily on the U.S. Postal Service to deliver notices to taxpayers. Many of these notices are received by taxpayers. This often comes up when the taxpayer has changed addresses. When the taxpayer does this and the address change is reported to the IRS, should the IRS have to update its records and…
A recent study confirmed that over 16 million people were the victims of identity theft in the span of one year in America alone, which resulted in $16.8 billion in stolen money. Identity theft is dangerous to your wallet and to your credit. Identity thieves use your information to take out loans, obtain credit cards, make purchases,…
The IRS said that on June 28, 2019, it will stop faxing tax transcripts to taxpayers, tax professionals, and third parties to protect against identity theft (IR-2019-101). The IRS will also stop mailing tax transcripts to third parties. The new policy covers individuals and businesses. Once this change goes in effect, individual taxpayers will be…
Unfiled Tax Returns Some people avoid filing their tax returns because they don’t want to, or can’t afford to pay taxes they owe to the IRS. Others simply forget or don’t know they need to file. Whatever the reason may be, having previous years of unfiled tax returns can create problems whether you are due…
