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...
IRS Tax Debt
What to Do If Your Spouse Has Tax Debt
You generally aren’t responsible for tax debt incurred by your spouse before you were married. However, you could still run the risk that the IRS will seize your tax refund if you file jointly. To avoid this situation, you have a few options. File Separately If you...
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 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 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....
IRS Notices: CP 508C Passport Revocation or Denial
The CP 508C notice is telling you that your passport may be revoked or denied because you have seriously delinquent tax debt. You’ll need to resolve your tax problems with the IRS in order to keep your passport or have your next passport issued. Why You Are Receiving...
Tax Levy on Social Security Benefits
The IRS has powers that many ordinary creditors don’t have. One of those powers is the ability to levy your Social Security benefits if you have delinquent tax debt. This is done as part of the Federal Payment Levy Program (FPLP). How Much Can the IRS Take? The IRS...