Category: IRS Problems

Q & A and Tips on Accounting, Taxes and Personal Finance.
What is happening to Lien Notices

What is happening to Lien Notices

The IRS loses on liens to your credit score Recently I was informed of Liens and Debts credit reporting changes in the three credit reporting bureaus. The following is my research to help you, the taxpayer, know what is changing and how it will impact on you. Here in the United States, we have may […]

June 27, 2017 | By More
IRS Scam Alert

IRS Scam Alert

Private Agencies Now Collecting for IRS…Your Scam Alert Should be on High In a recent announcement, the IRS notified all taxpayers that outside collection of past-due tax bills is now beginning in mid-April 2017. This is a direct result of Congressional action in late 2015 requiring the IRS to turn over to outside companies billions […]

May 4, 2017 | By More
Five Steps To Take If You Are Audited

Five Steps To Take If You Are Audited

Getting audited is no one’s idea of a good time, yet you can minimize the stress if you take the right approach. Step 1: Understand why and when. While it’s possible you were selected randomly, it’s more likely you were selected for a specific reason. One example might be if your deductions for charitable donations […]

April 24, 2017 | By More
When the IRS Suspects You of Under-Reporting Income

When the IRS Suspects You of Under-Reporting Income

Have you suddenly become the unhappy target of an audit for allegedly under-reporting income to the IRS? Maybe you did under-report. Maybe you didn’t. Whether you did or not, your tax returns have waved some red flags at the IRS and you are now in their line of sight. You may not know it, but […]

April 24, 2017 | By More
Understanding the IRS Audit Process

Understanding the IRS Audit Process

If you’ve received a notice of audit from the IRS, here’s a few things you should know to ensure that your experience is as painless as possible. The last thing you want to do is ignore the request for documentation. Even if you don’t have what’s being requested, you can avoid further problems and unnecessary […]

April 4, 2017 | By More
Using Independent Contractors? Why your business should use caution.

Using Independent Contractors? Why your business should use caution.

It is critical that business owners correctly determine whether the individuals providing services are employees or independent contractors. The IRS states that generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay […]

February 25, 2016 | By More
IRS Audit

IRS Audit

Why is the IRS auditing me? Did I cause my tax return to be audited? How can I prevent or at least minimize the potential of being audited? These are all questions that are asked when a taxpayer receives the dreaded letter from the IRS. Let’s start with what constitutes an audit by the Internal […]

February 22, 2016 | By More
IRS Phone Scams – The IRS will never call you

IRS Phone Scams – The IRS will never call you

The IRS reminds people that they can know pretty easily when a supposed IRS caller is a fake. Here are five things the scammers often do but the IRS will not do. Any one of these five things is a tell-tale sign of a scam. The IRS will never: Call to demand immediate payment, nor […]

February 10, 2016 | By More
IRS Notices – Do’s and Don’ts

IRS Notices – Do’s and Don’ts

Receiving a letter from the IRS can make your blood run cold. A smart response strategy can lessen the stress, but where to begin? David Leichter CPA of Pikesville Maryland discusses his experience with delinquent taxpayers, and offers some “do’s” and “don’ts” for dealing with the IRS. David: I’ve been working as an accountant for […]

February 9, 2016 | By More
Tax Audit – What are IRS CP2000 Notices

Tax Audit – What are IRS CP2000 Notices

If you have received a CP2000 Notice from the IRS it means they have reason to believe you have underreported income. The IRS compares the information reported by employers, banks, businesses, and other payers on income documents like the Forms W-2, 1098, 1099, etc., with the income, credits, and deductions you report on your income […]

February 9, 2016 | By More