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
Hope everyone had a Happy New Year! Now that all of the holiday sales are over & all of the bowl games have been played, it officially feels like we are in 2015.
Another indicator that 2015 is in full swing is the fact that we only have a week to go before tax season officially opens.
While the majority of Americans receives a tax refund each spring, a percentage of individual taxpayers and small business owners end up owing the IRS back-taxes. For these delinquent taxpayers Continue reading IRS Issues? Explore Your Options
What is a Federal Tax Lien?
A federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt. The lien protects the government’s interest in all your property, including real estate, personal property and financial assets.
When Does the IRS File a Tax Lien?
The IRS files a tax lien against your property when you have failed to Continue reading Warning: Your IRS Tax Lien May Cost You More Than Just Dollars
Imagine for a moment that you are opening the lid to your mailbox. Unsuspecting of its contents, which would you find to be the worse surprise?
a). An enormous pile of junk mail
b). A hefty back-tax bill
Continue reading Spinning Your Wheels With Tax Issues?
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The easiest way to lower your taxes is to not miss any deductions on your tax return. For this reason, it’s well worth the effort to adopt a system by which you can conveniently track expenses, and maintain receipts for business expenditures. A good system won’t only keep you focused on tracking those valuable business deductions, but it will also provide a necessary paper trail in the event of the dreaded IRS audit. Continue reading How To Save Money And Make Life Easier Come Tax Time