Tag Archives: irs
Tax Shelters
Thursday, May 6, 2010 // 0 Comments // Tax Law
In an effort to avoid paying taxes, some individuals and businesses have sought refuge in tax shelters. The term “tax shelter” covers a wide range of methods designed to reduce the amount of tax incurred. The legality of tax shelters varies, and many arrangements are illegal. Thus, the IRS is constantly on the lookout for [...]
Read more & Talk about itTax Fraud
Thursday, May 6, 2010 // 0 Comments // Tax Law
Our tax system uses voluntary compliance as its method of assessing taxes, which means that individuals are responsible for filing their own tax returns each year. Happily, most of us are law abiding citizens who diligently file returns by the deadline and pay the correct amount of tax. There remains, though, a small portion of [...]
Read more & Talk about itRefund Checks and Address Changes
Thursday, May 6, 2010 // 0 Comments // Tax Law
After marriage, many newlyweds reside at a different address and may miss their refund checks if the old address is still listed with the IRS. To remedy this problem, be sure to register the change of address with the Postal Service as soon as possible. Although the Post Office will forward this information to the [...]
Read more & Talk about itOffer in Compromise
Thursday, May 6, 2010 // 0 Comments // Tax Law
When taxpayers fail to pay their tax debts within IRS deadlines, options such as the Offer in Compromise (OIC) exist to facilitate settlement. The goal of an OIC is to find a tax solution that resolves debt in a way that’s satisfactory to both the government and the taxpayer. Compromise is key. Although the IRS [...]
Read more & Talk about itAppealing the Filing of a Lien
Thursday, May 6, 2010 // 0 Comments // Tax Law
The IRS must provide written notice of a lien within five days of its filing. Once taxpayers receive that notice, they may opt to request a Collection Due Process hearing with the Office of Appeals. The paperwork involved may become tricky, as you must file with the specific office listed on the Notice of Appeal, [...]
Read more & Talk about itReleasing a Lien
Thursday, May 6, 2010 // 0 Comments // Tax Law
Because liens have such wide-ranging harm, releasing a lien becomes a priority. The IRS will issue a Release of the Notice of Federal Tax lien if the taxpayer meets proper conditions. If the tax debt is satisfied, the IRS will release the lien within 30 days. Satisfying this debt includes payment of any associated interest [...]
Read more & Talk about itConsequences of a Lien
Thursday, May 6, 2010 // 0 Comments // Tax Law
If the taxpayer fails to satisfy the debts in 10 days, the IRS creates a lien and files a Notice of Federal Tax Lien. Because a lien is filed publicly and gives notice to all creditors, the affects can be immediate and devastating to the taxpayer. Liens damage credit ratings, and the repercussions may prevent [...]
Read more & Talk about itWhat is a lien?
Thursday, May 6, 2010 // 0 Comments // Tax Law
A lien gives the IRS legal entitlement to any property you own, or any property that you acquire after the lien is filed. The IRS pursues a lien to satisfy payment of outstanding tax debts. To meet legal requirements, the IRS must follow a certain process when pursuing liens. First, they must assess the tax [...]
Read more & Talk about itIRS Levy
Thursday, May 6, 2010 // 0 Comments // Tax Law
IRS levies are designed to ensure that the government receives payment from individuals owing tax debts. When a taxpayer fails to render payment due, the IRS can institute a levy to obtain that payment. An IRS levy might mean: Seizure and sale of property such as a car, boat, or house. Wage garnishment, levy of [...]
Read more & Talk about itIRS Collection Process
Thursday, May 6, 2010 // 0 Comments // Tax Law
When a taxpayer fails to file a return and pay money owed in a timely manner, the IRS initiates the collection process. The first step in this process is sending the taxpayer an official bill, called a notice. Along with the notice, taxpayers receive documents explaining their rights and the various options for achieving payment. [...]
Read more & Talk about itAre deductions allowed for business-related entertainment expenses?
Thursday, May 6, 2010 // 0 Comments // FAQs
Entertaining customers is sometimes a key part of the job, so the IRS does allow deductions. You may only deduct 50% of the expenses for a business lunch or dinner though. Besides meals out, deductions are permitted for taking a client out to a ball game or even hosting a client dinner at your home. [...]
Read more & Talk about itCan I deduct expenses from using my car for business?
Thursday, May 6, 2010 // 0 Comments // FAQs
Yes, you may take a deduction for automobile use. However, you’ll need to keep detailed records to support this deduction, in case the IRS decides to audit you. Your records should include a log of all miles traveled for business purposes, with a notation indicating the purpose of the trips.
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