When you receive a CP523 notice from the IRS, it means your installment agreement may soon be terminated. You have a limited time to get your payment plan reinstated before the IRS can begin using enforced collection actions, such as bank levies. Take the following...
Month: May 2019
IRS Expands Underpayment Penalty Relief Once Again
The IRS has expanded the safe harbor for underpayment penalty relief for a second time this tax season. Taxpayers who paid at least 80 percent of their annual tax liability throughout the year will not face underpayment penalties this year. Underpayment Penalty Rules...
How to Avoid an IRS Installment Plan Default
When your installment plan defaults, the IRS can once again use enforced collection actions to try to collect your tax debt. This can include any of the following actions: Wage garnishments that take a portion of every paycheck you receive Bank accounts levies Filing...
Why Was Your IRS Installment Agreement Request Rejected?
It’s frustrating when the IRS rejects your installment agreement request, but you may have a chance to salvage the situation. You can sometimes make a few small changes to improve your offer and increase the likelihood it will be accepted. Installment agreements may...
Signs You May Be a Victim of Tax Identity Theft
Tax identity theft occurs whenever someone uses your personal information to file a tax return or complete any other tax form. If you’re a victim of tax identity theft, you may have to deal with the following consequences: Delay of tax return processing and tax...
How Your Taxes Change After a Divorce
Divorce has many financial consequences, including big changes to your tax situation. Not only will your tax return change, but your property settlement and alimony also have important tax consequences. Property Division The tax code allows most transfers incident to...
Life Changes That Affect Your Taxes
As your life changes, your tax return will often change along with it. Any of the following major life events will impact your tax return and how much you owe each year in taxes. Marriage Getting married will cause several changes to your tax return: Your filing...
Tax Problems for Two-Income Families
Having two incomes will usually help your family’s financial situation. But it can make your tax situation more complex and require more tax planning and preparation. If you have multiple incomes in your family, be aware of the following potential tax problems....
What Happens If You File Your Tax Return Late?
The consequences of filing a late tax return depend on whether you owe taxes or are due a refund. It also matters if you file your return just a few days late or several years after the return’s deadline. Late Returns When Owed a Tax Refund The IRS doesn’t charge any...
Why the IRS is Recommending a Paycheck Checkup
The passage of the Tax Cuts and Jobs Act (TJCA) has affected every taxpayer a little differently. Because of this, the IRS has encouraged taxpayers to do a “Paycheck Checkup” to make sure they aren’t underwithholding or overwithholding their taxes throughout the year....