This could be another rough tax filing season for the IRS and taxpayers. Although this year’s tax season opens January 24, 2022 (i.e., it is the first day the IRS will accept and start processing 2021 returns), the Service still has a backlog of prior year returns to process and…
One of the fallouts of the COVID-19 pandemic is that millions of people have dropped out of the workforce. While they remain unemployed, they will have lost the opportunity to build up their retirement nest egg through their employers’ retirement plans. However, those who are married have an option to…
The Internal Revenue Service recently launched an updated identity verification and sign-in process that enables more taxpayers to securely access and use IRS online tools and applications. Taxpayers using this new mobile-friendly verification procedure can gain entry to existing IRS online services such as the: • Child Tax Credit Update…
The year is quickly coming to a close and if you haven’t taken your 2021 RMD, it’s time to do so. RMDs are required minimum distributions from qualified retirement plans and are commonly associated with traditional IRAs, but they also apply to 401(k)s and SEP IRAs. The tax code does…
As the end of the year is approaching it’s time to consider implementing some last-minute tax planning strategies that will help reduce your 2021 taxes. Here are five tax reduction ideas. Prepay Expenses Using the IRS Safe Harbor The IRS has a safe-harbor rule that allows cash-basis taxpayers to prepay…
If you’re trying to qualify for an Offer in Compromise (OIC) with the Internal Revenue Service, but you aren’t sure about your odds of success, consider what the IRS calls your reasonable collection potential (RCP). It is used to determine how much to offer the IRS to settle your back…
An Offer in Compromise (OIC) is a strategy that taxpayers can use to resolve their back taxes. Taxpayers who can’t afford to pay their debt in full using a lump sum or installment agreement can submit an OIC to the IRS. If you’re considering an OIC, you likely have questions….
If you’re trying to file current or past tax returns, or are dealing with back tax problems, you should find out what the IRS knows about you by obtaining your IRS transcripts. The IRS offers five different transcript types that can help you find the version of your tax history…
Before the COVID-19 pandemic, the IRS was getting refunds out swiftly and responded to calls and correspondence in a reasonable amount of time. However, COVID-19 brought about a perfect storm of delays, initially caused by employees having to stay home because lockdowns prevented processing centers from operating and workers from…
Resolving your back taxes in a way that works for you and your family, as well as satisfying the IRS, is a great feeling. We recently helped Carl become an Offer in Compromise success story by using the IRS allowable living expenses to his advantage. He was able to submit a…