Dealing with an IRS collection action such as a levy, a lien, or an IRS property seizure can be stressful and time-consuming. The process for appealing one of these actions can also be a lengthy ordeal. Because your property and assets may be at stake, it is important for you to understand your rights and responsibilities in these situations. You do have the right to appeal most IRS collection actions, but you must do so by following a very specific time frame in order to have your appeal heard.
Are you facing an impending IRS collection? If so, you may feel that you have no choice but to accept the decision. However, the agency does give taxpayers the option to appeal IRS decisions relating to collections. Taxpayers do not have to fear that their appeals will be tossed aside. The agency handles appeals in a completely separate department from collections, and the two groups are forbidden by law to communicate. This precaution ensures that taxpayers receive a fair appeals hearing.
If you own a business and you have employees, then you are no doubt familiar with the requirement to withhold payroll taxes and submit them to the IRS. According to federal tax regulations, employers are required to deposit their employees' payroll tax withholding amounts, as well as their matching deposits, once every three months. For bosses who neglect or refuse to comply with this payroll tax requirement, the IRS has instituted a penalty called the Trust Fund Recovery Penalty (TFRP).
When taxpayers are searching for overlooked end-of-year tax deductions to include, they may wonder whether they qualify to deduct the cost of any funeral expenses they had during the year. In the vast majority of cases, however, funeral expenses are a nondeductible expense, which means that they cannot be deducted on a tax return. There are a few tax returns each year. They may legitimately include the cost of funeral expenses as a deduction.
Every year, the IRS imposes tax penalties upon individuals and businesses. In most cases, these penalties are related to minor oversights such as failure to submit a tax return on time or a failure to pay a tax bill on time. In some cases, taxpayers may be subject to more than one penalty at a time, which can raise his or her tax liability substantially. One of the penalty relief provisions the IRS offers is called a first-time penalty abatement. While the agency is strict about imposing tax penalties where necessary, some first-time tax offenders may qualify for penalty reduction or removal under this arrangement.
If you've had to manage an IRS federal tax lien on your property, you may be wondering what you can do to remove any remaining obstacles once the lien has been cleared. This may be particularly important if you intend to sell the property to another individual after the tax lien has been removed. In a few instances, some taxpayers who do not owe back taxes to the IRS may receive erroneous tax lien filings against their property. If this happens, it can make it difficult for these individuals to sell their properties. To clear up this situation, taxpayers should request a certificate of nonattachment of federal tax lien from the IRS.
Some taxpayers may think that they can simply close a business without having to take any additional steps relating to IRS regulations. While it is completely up to each business owner to decide when to close up shop, there are a few procedures they must follow to make sure that they inform the IRS of their plans and that they issue the appropriate forms to any employees.
Taxpayers who purchase plug-in electric drive vehicles may be eligible to claim a tax credit. Since 2009, the IRS has provided the Plug-In Electric Drive Vehicle Credit for individuals who purchase qualified electric vehicles during the tax year. Depending on the type of vehicle, taxpayers may be eligible to claim a tax credit of up to $7,500 on their qualified purchases. As a tax credit, the Plug-In Electric Drive Vehicle Credit reduces overall tax liability.
Taxpayers who own rental property are subject to special tax considerations when it comes to reporting their rental income. The good news is that the agency allows these taxpayers to claim several expenses as tax deductions against this income so that they can reduce their taxable gain. In order to take advantage of these deductions, taxpayers must keep good records of their income and expenses to document their claims. Here are a few rental income tips to help taxpayers keep up with their obligations to the IRS.
Many taxpayers who are facing a federal tax lien may feel that they are out of options. While it's true that a tax lien is typically one of the most severe penalties that the IRS can levy, there are a few situations in which a taxpayer can get an IRS tax lien removed. Doing so requires obtaining a written document from the IRS called a Certificate of Discharge from a federal tax lien. If you're able to receive one of these certificates, you can have the federal tax lien removed from your property.
