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There are two primary ways to have penalties abated and refunded or waived. The first is what is referred to as a “First Time Penalty Abatement.” As the term implies, it is available to taxpayers who have shown a record of compliance and good behavior who have made a mistake for the first time. The […]

The IRS applies late penalties and interest on a case-by-case basis and will send a separate bill if penalties apply. Because the IRS has the last word on penalties, we can’t calculate the exact amount if your return is late. But the info below will give you an idea of what to expect in a […]

The IRS takes payroll taxes very seriously. The employer is deemed to be holding these taxes in its payroll deposit account in trust for the US government on behalf of the employee. Taking and using the taxes, even if it is to keep the business open, is looked upon as theft and as stealing from […]

This is the first serious step in the IRS collection efforts to collect past due tax liabilities. You may want to consider hiring a tax professional at this time. There is no harm in you calling the IRS at this time, but you should not offer them any information. The purpose of your call is […]

IRS, state and local taxation agency audits are long, tedious and paper intensive. Upon receiving a notice of an IRS or tax agency audit, consider your resources, your records and your time. Tax Audits are very distracting and take time away from your employment, business, family and life. Most people get very frustrated and hire […]

Open the letter and read it. You are deemed to have received and understood the full letter regardless of whether you do so or not. You will be held to its terms whether you respond or not.  The IRS is a collection agency. Do not leave it not taken care of. Interest and penalties are […]

From the IRS website (irs.gov) [A claim] for a refund must be filed within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever of such periods expires the later, or if no return was filed by the taxpayer, within 2 years from the time […]

It would rather not. You cannot make any money to pay them taxes with when you are in jail. The short answer is, however, yes. They cannot place you in jail for just not paying your taxes. Negligence, ignorance and stupidity may not be an excuse for not paying your taxes, but they are also […]

The IRS charges interest on tax, penalties, and interest until the balance is paid in full. The interest accumulates (accrues) daily. This is what makes IRS interest makes it so expensive. Other loans, like mortgage loans, credit cards and home equity loans, usually accrue monthly, if that often. IRS interest stops only accruing when you pay […]

Call the IRS and get all the income data, account transcripts and other available records the IRS in order to make sure you address all issues in your amended IRS 1040 tax return. The form number of the amended tax return is 1040X. You can get it on the IRS website (irs.gov). Have either your […]