People often ask me, “how do people fall behind on their taxes?”

I usually respond by explaining that there are many reasons people fall behind on their taxes – life’s circumstances usually being the leading reason – illness, or a family member becomes ill, or passes away. People get divorced, and/or lose their jobs and their income. And sometimes, it’s just a lack of knowledge – people don’t realize there are certain things they need to do to remain compliant with the IRS.

To make matters worse, the tax issue is neglected until it spirals out of control.

Unfortunately, many are not aware of the legitimate programs the IRS offers to taxpayers who cannot pay their full tax liability.

Estimated Tax Payments

Failing to properly file and pay quarterly estimated tax payments is one of the main reasons we see clients come to Streamline Tax Resolution for help with their back taxes. Many of these clients were unaware they were required to make quarterly individual estimated tax payments. Other clients had been impacted by a life event (see above), and could not afford to pay. Once you miss paying these quarterly payments, your tax debt can quickly escalate with penalties and interest the IRS will add on.

How do you know if you should be filing quarterlies? Continue reading Should You File Self-Employment Tax? →

There may be occasions where you might have to come out of your own pocket to foot the bill for business related items.

Here are 5 tax tips that you should know about this deduction.

1. Ordinary and Necessary

Generally, you can only deduct ‘unreimbursed’ expenses. To qualify for a deduction, expenses must be both ordinary and necessary for your line of work.

An ordinary expense, says the IRS, is Continue reading 5 Tips You Should Know about Employee Business Expenses →

The threat of an IRS Audit can invoke the most intimidating feelings possible. If you are unfortunate enough to be chosen for this unwanted engagement, your experience will most likely be time consuming and costly.

Although the IRS audits less than 1% of all individual tax returns annually, your chances of being audited Continue reading 15 Ways To Avoid The Jaws Of The IRS Auditor →

This week, one of my favorite and most exciting annual tradition tips off: March Madness.

Over the next 20 days, my TV will amplify the sounds of crowd noise, sneakers squeaking, and whistles blowing. Names, such as Blue Devils, Jayhawks, Wildcats, and Badgers will dominate discussions, and sports bars fashion will take on a colorful, collegiate inspired, twist.

The infectious ritual Continue reading March Madness and Taxes →

For many of those who work from home, the process of calculating home-office deductions can be confusing. That’s why, beginning last filing season, the IRS has offered a simplified alternative option to calculate home-office itemized deductions.

Under the old method, taxpayers labored to complete a very intricate and drawn-out IRS form. The majority of time was spent on Continue reading Deducting Office Expense →

If patience isn’t one of your virtues, then chances are – you may lose your cool this tax season.

Today, I’m addressing the declining service of the IRS.

Taxpayer service is poor and getting worse. You know its bad when the head of the National Taxpayer Advocate (an independent office within the Internal Revenue Service), Nina Olson jokingly offers the following advice: “bring your Continue reading IRS Delays →