The IRS has the power to levy most types of assets and income. Only a few items are specifically exempt from IRS seizure, but the IRS seizes some types of assets more frequently than others. Income Subject to IRS Levy The IRS can seize your wages, salary, commission...
Month: July 2019
Does Back Child Support Affect Your Tax Refund?
The IRS can offset your tax refund for delinquent child support as part of the Treasury Offset Program (TOP). Your entire refund may be levied or it may be reduced to pay the past-due child support. Treasury Offset Program The TOP allows tax refunds to be seized to...
Reasons IRS Installment Agreements Are Terminated
The IRS is required to give a taxpayer adequate notice before terminating an installment agreement. You should receive Notice CP523 in the mail and be given 30 days to respond or fix the issue. The Notice CP523 is telling you that you have defaulted on your payment...
Tax Breaks for Homeowners
The Tax Cuts and Jobs Act (TCJA) modified several of the tax breaks offered to homeowners. Some taxpayers may now get less tax benefits from owning their homes, but that doesn’t necessarily mean they’ll end up paying more in income taxes. If you’re considering buying...
Tax Consequences of Failing to Report Tips
Tips are taxable income, and a failure to properly report your tip income could lead to the following issues: IRS audit of your return. Back taxes owed. Interest and penalties added to your tax debt. Tipped employees should be aware of these consequences and properly...
Inheritances and IRS Tax Problems
Any inheritance you result is generally only subject to estate taxes and not income taxes. Since estate taxes only impact a small portion of estates, you may think that are inheritances are automatically tax-free, but this isn’t always the case. There are a few...
Why Do People Forget to File Tax Returns?
Every year, people who are required to file tax returns or who could benefit from filing a return fail to do so. Some of them miss their chance to receive a tax refund, while others could run into tax penalties, interest and other problems caused by unpaid IRS tax...
How Does the IRS Criminal Investigations Division Work?
The IRS Criminal Investigations (CI) Division handles tax crime cases. These cases are much less common than civil tax cases. The IRS states that they prosecute approximately 3,000 criminal tax cases each year. However, these prosecutions also provide a warning to all...
Avoid Improperly Claimed Business Tax Credits
One of the IRS Dirty Dozen scam for 2019 was improperly claiming business tax credits. If your tax preparer tries to claim one of these credits, you could be responsible for the incorrect items on your return. If your return is audited and contains improper business...
What Are IRS Phone Scams?
IRS phone scams occur when someone calls impersonating an IRS employee and demanding payment. Phone scams were one of the IRS Dirty Dozen tax scams for the 2019 tax year. Taxpayers who owe the IRS may be understandably frightened if someone calls their home pretending...