As we’ve discussed on this blog before, the IRS’s enforcement budget has been slashed by a quarter since 2011. That has meant fewer audits and collection activities overall, and it has focused those efforts on working people more than on the wealthy. In 2017, Congress directed the IRS to allow private collection agencies (PCAs) tocontinue reading…
Back Taxes Or Tax Debt
Too much tax debt and you could lose your passport. Act now.
Many people don’t realize that they could lose their passports if they are found to be seriously delinquent in their tax liabilities. This is a relatively new penalty for nonpayment that was created under the 2015 Fixing America’s Surface Transportation Act (FAST Act). The Act requires the IRS to certify seriously delinquent debts to thecontinue reading…
Does it make sense to pay your tax debt with a credit card?
You owe federal taxes, and you also have a credit card that will pay rewards on anything you use it for. When you run the numbers, are the rewards worth the cost? Generally, no. Although it might be tempting to rid yourself of that pesky tax debt right away, there are usually better options thancontinue reading…
Who is eligible for an Offer in Compromise?
The Internal Revenue Service (IRS) and the Minnesota Department of Revenue recognize that not every taxpayer can pay off their tax bill. For whatever reason, a tax bill may simply be more than the taxpayer can afford. In certain situations, these taxpayers can qualify for an Offer in Compromise. What is an Offer in Compromise? Ancontinue reading…
Beware: A tax filing extension can lead to a higher penalty
Not every taxpayer in the country made the April 15, 2019 tax filing deadline for their 2018 tax returns. Some were still gathering paperwork and trying to navigate the complex new rules. Those who found themselves in this situation may have filed for an extension. Does a tax extension with the IRS extend the deadline? Yes,continue reading…
