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…
If you’re wondering what comes next when the IRS sends you to a private debt collector, the short answer is maybe nothing. The long answer is much more complex, but if you receive a CP40 Notice from the IRS, you can breathe a sigh of relief. However, you must know…
The IRS Offer in Compromise program is popular with both tax resolution professionals and taxpayers dealing with back tax problems. The program allows qualifying taxpayers to settle their back taxes for less than the amount they owe. However, before submitting your Offer, you should be sure: It’s the best way…
There are many ways to resolve tax debt depending on your situation. The best way to settle with the IRS may even change with your circumstances. For example, this offer in compromise success story did not begin with an offer in compromise at all! What began as an installment agreement…
When a business employs people, they become responsible for employment taxes in two ways. First, the business must withhold part of an employee’s wages in order to pay income taxes, Social Security taxes, and Medicare taxes. These payroll taxes are referred to as trust fund taxes because the business holds the…