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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 […]

Generally, in an IRS Tax Audit, the IRS can include tax returns filed within the last three years in a Tax Audit. If the IRS identifies a substantial error, they may add additional years. If they are auditing you for years that you have not filed tax returns, this is a very bad situation. The […]

Generally, in an IRS Tax Audit, the IRS can include tax returns filed within the last three years in a Tax Audit. If the IRS identifies a substantial error, they may add additional years. If they are auditing you for years that you have not filed tax returns, this is a very bad situation. The […]

Yes, but it is really hard, expensive and the IRS really would rather not. The seizure of a taxpayer’s home or business is authorized by the Internal Revenue Code. The IRS District Director is empowered to take a taxpayer’s home or business with a stroke of his pen. The Internal Revenue Service Restructuring and Reform Act of 1998 (1998 […]

Often, the California Franchise Tax Board (FTB) can be harder to deal with than the IRS. The FTB’s attitude is that they gave the taxpayer sufficient notice to enter alternative arrangements. While the FTB’s levies are limited to 25%, once they are imposed they are harder to get released. The taxpayer must submit financials showing […]

10 YEARS. I would like to able say that, but it is a little more complicated than that. The term the IRS uses is CSED (Collection Statute Expiration Date). 10 years from the date of assessment, not the date you filed. This means the 10 year period starts the date the IRS has your tax […]

This is a somewhat impossible question to answer. It depends on your situation. If you owe less than $5,000, you will be below the radar for purposes of having the IRS file a lien against your property, wages or bank accounts. As this is the first step in the IRS’ collection procedure, a levy is […]

From the IRS website: Selection for an audit does not always suggest there’s a problem. The IRS uses several different methods: Random selection and computer screening – sometimes returns are selected based solely on a statistical formula. We compare your tax return against “norms” for similar returns. We develop these “norms” from audits of a statistically […]

If you pay your employees in cash and do not document this expense and report it to the IRS and FTB, you will not be able to report it as a deductible business expense on your business tax return or the Schedule C on your 1040 tax return. While many see this as a way […]