Did you know that some taxpayers are more likely to be audited than others? It may seem unfair on its surface but the IRS considers some returns to be more likely to contain fraud. You might be inviting an IRS audit even if your figures are legitimate. While it's impossible to completely avoid being audited, it is wise to find out which actions may actually be a trigger for an IRS audit so you can prepare yourself in case your return is red-flagged.
Self-employed taxpayers are some of the most frequently audited individuals each tax year. These taxpayers are particularly susceptible to
tax audits because many of their expenses are subject to their own documentation. One of the most commonly investigated claims is the home office deduction since some taxpayers have abused this provision over the years. You could be inviting an audit if you don't take steps to ensure your deduction is well documented.
Read More >
Business owners who have employees on their payroll are legally required to submit federal and state payroll taxes to the government every quarter. Since these taxes can become rather costly over time, some entrepreneurs may be interested in learning how they can reduce their payroll tax burden while keeping their workforce intact. Here are three ways to cut payroll taxes without cutting payroll.
Read More >
In most tax years several changes are made to the existing federal tax code. 2012, however, included a few additional adjustments that affected the deductions that were allowed in previous years. Here are seven tax law changes for 2012 and what you need to know about how they could affect you.
Read More >
Dealing with an outstanding IRS tax debt is a stressful situation but it can be even more difficult to handle if you're facing a financial hardship. These situations, which could be caused by any number of factors, are not unusual for taxpayers who owe and want to settle back taxes. This is why the IRS extends a special provision for those who are dealing with financial hardship - the "Hardship" status which places a temporary freeze on your repayment requirements until your economic situation improves.
An offer in compromise is a little-used tax relief provision that may give you the opportunity to write off most of your tax debt to the IRS. This option may help to absolve a large amount of the outstanding debt, leaving you with just a small percentage to repay. Qualifying for an offer in compromise can be very difficult, though, since the IRS has strict guidelines for eligibility and may not approve your request.
Read More >
Taxpayers who have an outstanding tax debt with the IRS may receive a notice about a possible bank levy. This usually happens after the debt has gone unpaid for some time or after the taxpayer has neglected to contact the IRS about repaying the debt. While dealing with an IRS bank levy is a difficult process, the good news is that you may have time to settle your account before the levy is enforced. Here are three suggestions for
avoiding a bank levy.
Read More >
If you've recently gotten divorced you may be feeling somewhat overwhelmed by the process of starting over as a single person. However, one of the most important parts of your life that you need to protect right now is your financial well-being. Even after your divorce is finalized there are a few tax tips for the divorced that you'll want to follow to make sure your assets are well managed.
If you're a newlywed who just got married this year you may be excited about starting your new life with your spouse. However, if you don't take the time to do a little tax planning you might get an unpleasant surprise at tax time. The good news is that most of these tax tips for newlyweds are fairly simple to implement so you won't have to take much time out of your newly married life to settle them.
If you owe back taxes to the IRS you may be wondering what your possible settlement options are. This may be particularly true if you're barely making enough money to cover your necessary living expenses. The IRS does have a status called "Currently Not Collectible" that is reserved for taxpayers who owe tax debt but are financially unable to repay the debt for a time. Qualifying for this designation is a bit complex but may provide some short-term tax relief for those who are struggling to make ends meet.
