Informational Returns 1099 tax forms are some of the most recognizable tax forms to the average taxpayer. These forms are considered informational tax returns because the IRS requires filers of informational returns to provide this information to individuals they have completed potentially taxable transactions with and also to provide this information to the IRS. This
IRS Issues
First Time Penalty Abatement Program
The First Time Abatement (FTA) penalty waiver program is a relatively unknown program that allows taxpayers to request a waiver of failure-to-pay (FTP) and failure-to-file (FTF) penalties that have been applied to past due tax obligations. Introduced in 2001, this program allows taxpayers who have run into trouble with their tax obligations to avoid paying
Beware of Most Recent IRS Scam
We have been noticing a high volume of clients calling us claiming someone from the IRS is threatening to serve a warrant for their arrest immediately if they do not pay, and these calls are almost always a part of an elaborate scam targeting taxpayers. CNN Money published an article warning about these suspicious scams,
How the IRS calculates interest
How the IRS calculates interest Filing a tax return on time and paying any taxes due allows you to avoid having to worry about paying any additional penalties and interest the IRS may charge. However, every year there are taxpayers who find that they are unable to pay their tax obligations on time. These taxpayers
Understanding Your CP102 Notice From the IRS
If you have received a CP102 notice from the IRS in the mail, they are notifying you of changes they made to your return because they believe there was a miscalculation. As a result of this, you owe money on your taxes. Here is what you need to do if you have received a CP102
IRS CP 74 – Notification of Recertification for the EITC
If you received this notice, the IRS is notifying you that you have been re-certified for the Earned Income Tax Credit (EITC). The EITC is a benefit for taxpayers who work and have low to moderate income. This credit reduces the amount of taxes you owe and may also result in you receiving a refund.
How IRS Interest is Calculated
The IRS has many different penalties they can place against taxpayers if they believe you have a balance due after tax day. If you find yourself with a large balance due to the IRS, FTB, EDD, or SBOE, these agencies will impose high percentage penalties on the balance due, and they may begin garnishing your
Important Things You Need to Know About the IRS Offshore Voluntary Disclosure Program (OVDI/OVDP)
The OVDI program allows taxpayers to receive tax amnesty with the IRS. If you happen to have money in a foreign bank account, you must disclose the account and its balance to the IRS on your tax return each year. If you do not, you face certain penalties and possibly even criminal prosecution. The IRS
Most Common IRS Notices
Common IRS Notices The IRS has hundreds of notices they send to taxpayers, so we compiled a list of the most common IRS notices written in plain English to save you from the headache of deciphering what your notice means! CP10: The IRS has made changes to your return because there was a miscalculation, and
IRS Penalty Abatements – Reasonable Cause Factors
If a taxpayer is late with paying their taxes by their due date, they can face the possibility of having substantial tax penalties applied to their original tax balance. The types of late pay penalties fall into two categories: failure to pay and failure to deposit. Failure to pay is not paying by the tax