What You Need to Know if You’re Facing an IRS Civil Penalty


by Andrea Miller on October 17, 2018  0 Comment

What You Need to Know if You’re Facing an IRS Civil Penalty
Civil penalties are usually monetary fines imposed for those who fail to meet obligations such as filing and paying taxes. Most IRS fines are assessed as a percentage of the outstanding debt rather than as a flat fee. Although it is almost impossible to avoid penalties if you can't afford to pay your past-due taxes, you can take steps to minimize your liability.An IRS civil penalty is the fine imposed by the Internal Revenue Service on taxpayers who fail to abide by their legal regulations. This is in contrast to a criminal penalty such as jail time. Although the IRS has established more than 140 civil penalties, a few are much more common than others. When you receive an ...

What Is Cancellation of Debt?


by Andrea Miller on October 17, 2018  0 Comment

Cancellation of debt form refers to IRS Form 1099-C, which will be filed by a creditor that agrees to forgive all or a portion of your debt. Under most circumstances, the amount forgiven must be reported as income for the year in question.What Is Cancellation of Debt?If you can no longer pay your bills, you may be able to negotiate a debt cancellation agreement with your lender. However, because you received and used the loan or credit card amount but did not pay the money back, it is considered free income by the IRS and thus must be taxed as such.When Is Canceled Debt Taxed?Common situations in which you will receive a 1099-C form from the ...

What’s a Tax Attorney? Here’s Why You Might Need to Know


by Andrea Miller on May 22, 2018  0 Comment

What’s a Tax Attorney? Here’s Why You Might Need to Know
A tax attorney is a lawyer who has specialized training in the extensive U.S. tax code. In addition to the Juris Doctorate (J.D.) degree that all American attorneys earn, tax attorneys may also obtain a master's degree in tax law and/or have a background as a certified public accountant (CPA). If you have tax issues that relate to legal matters and/or are very complex, a tax attorney can advocate on your behalf. The Role of a Tax Attorney This type of lawyer is an expert in the laws and policies about taxation, including IRS guidelines and procedures as well as local, state, and federal laws that affect tax liability. They are knowledgeable about how these tax laws impact many aspects of life ...

In These Scenarios, Rely on a Specialized Tax Attorney


by Andrea Miller on May 14, 2018  0 Comment

In These Scenarios, Rely on a Specialized Tax Attorney
For complex tax situations, depending on the targeted expertise of a specialized tax attorney can help you avoid costly fees and penalties, which in some cases could even include prison time. Hiring a lawyer who specializes in taxation is about more than just filing your return. This type of professional has in-depth knowledge of tax laws and can help you understand and qualify for all the deductions that apply to your situation, potentially saving you thousands. From helping you understand when to itemize deductions to preparing for an IRS audit, a tax attorney is the professional you need to advocate for your interests. What Is a Tax Attorney? This type of lawyer has specialized training in federal, state, and local ...

How to Find a Tax Attorney and When You Need One


by Andrea Miller on May 14, 2018  0 Comment

How to Find a Tax Attorney and When You Need One
When you have issues with the IRS, you need support — a professional who can advocate for your best interests. While a certified public accountant (CPA) can help with most types of tax problems, certain complex issues require in-depth knowledge of the extensive, frequently changing tax laws. In these situations, you should find a tax attorney in your area who has the expertise you need to protect your best interests and successfully resolve tax debt and related problems. Tax attorneys can also help with complex matters such as international trade taxation and advantageous business structures. Reasons to Hire a Tax Attorney A CPA handles standard tax matters such as planning, preparing, and filing your returns. While he or she is well-versed ...

Know Your IRS Tax Relief Options


by Andrea Miller on May 12, 2018  0 Comment

Know Your IRS Tax Relief Options
The IRS offers several tax relief options for taxpayers that may be going through difficult financial times. Depending on the circumstances and the amount of tax involved, these measures can vary from deferred payments to debt forgiveness. You, of course, need to meet certain conditions to qualify for such relief programs. If your tax debts are greater than your income and assets put together, or if repaying the tax debts puts you into undue economic hardship, you should consider seeking tax relief services from an experienced tax counselor. Tax Relief Options Under the IRS Fresh Start Initiative The first of a few tax relief options is the IRS Fresh Start Initiative originally started in 2008  and has since undergone frequent ...

IRS Programs for Tax Forgiveness


by Andrea Miller on May 11, 2018  0 Comment

IRS Programs for Tax Forgiveness
If an individual or business has unpaid state taxes, the state can place a levy on his or her bank account. This legal action allows creditors to withdraw funds directly from your bank account to settle debts, including tax debts. Although creditors can take this step after showing the bank proof of a legal judgment against you, you may be able to take steps to prevent a levy in certain situations.While any type of creditor can win a judgment against you and levy your bank account in an attempt to collect overdue debts, or unpaid state taxes, this method is most commonly used by the IRS, state tax agencies, and the Department of Education. How Does a Tax Levy Work? ...