Tax identity theft occurs whenever someone fraudulently uses your personal information for tax purposes. There are several types of tax identity theft, but two main reasons that identity thieves steal your information: To file a return on your behalf and receive a...
Month: June 2019
How to Avoid FBAR Penalties
Penalties: You currently have an FBAR filing requirement. You failed to file FBARs during prior years and want to disclose your non-filing. Non-willful FBAR penalties can be up to $10,000 per violation, while willful FBAR penalties can be up to $100,000 or 50 percent...
Steps the IRS Must Take Before Seizing Your Assets
The IRS has powers far beyond what most creditors have. However, they still have to follow certain procedures before levying your bank account or garnishing your wages. Here are some of the steps the IRS must take before seizing your assets. Assess the Tax This step...
What Happens If You Ignore a Letter from the IRS?
There are many types of IRS notices and each one has its own repercussions if you fail to respond. The following are a few potential consequences of ignoring a letter from the IRS. Your Passport is Denied The IRS has the power to provide information to the State...
What to Do If You Missed the Tax Return Filing Deadline
You should file your return as soon as possible if you missed the tax return filing deadline. There are two scenarios you may find yourself in: You missed the deadline and are owed a tax refund. You missed the deadline and owe the IRS money. In either case, you will...
What Happens If You Get Currently Not Collectible Status?
Currently not collectible (CNC) status gives you a breather from imminent IRS collection actions. The IRS generally won’t levy your assets or wages while your account remains in CNC status. There are costs and benefits to CNC status that you should consider before...
Tax Issues When You Start a New Business
It’s exciting to start a new business venture, but it also causes new tax issues. Business taxpayers have more deduction opportunities, but also need to do more work to make sure they avoid tax problems. Look out for the following tax issues when starting a new...