The Internal Revenue Service's primary form of communication is done by mail and fax, and their review of returns is done by hand. This process causes a massive backlog at the IRS for processing returns, however, that may change over the next few years with the newly passed Infrastructure Act's $80 billion in funds. But what does that mean for tax payers?
The Internal Revenue Service has enacted a new policy that allows S Corporation to correct invalid S corporation elections. This new policy allows S corporations to make the necessary election to seek relief from the IRS after the proper returns have been filed.
The CP21C notice is used as a reply to taxpayers pertaining to a communication they've made to the IRS. It is a confirmation that the agency has made changes to your account based on the communication they received. If you received a CP21C notice, without communicating with the IRS, it is likely due to a mistake from the IRS. But don't ignore it, you may be eligible to claim credits on a past return.
If you've received a CP 14 Notice, don't panic, this is the Internal Revenue Services firs notice to you about an unpaid balance. Failure to respond to this notice either by establishing any payment options or consulting an attorney will result in the IRS taking collection action against you.
If you have an unpaid tax bill, the IRS will likely initiate collections action to retrieve the money they are owed. But not to worry, the IRS will not immediately start seizing assets or pulling money from your accounts. They will notify you of the collection action to be taken against the unpaid balance and you can work to set up payment arrangements towards the balance.
Recently we have seen the IRS increase has increased its efforts in enforcing crypto-related tax labilities on cryptocurrency users. You can expect that to increase as the Internal Revenue Services has received more funding and new requirements under the Infrastructure Act will require crypto dealer to issue users 1099-B's.
If you received a letter from a third party collection agencies, review the notice carefully, the Internal Revenue Service will sometimes use private collection agencies to retrieve overdue tax debts.
The CP504 Notices is to alert you to the unpaid taxes you have due immediately to the Internal Revenue Service. The letter will also serve as a notice of intent that the IRS could begin levying your accounts or other assets in an attempt to collect the balance due.
Recent changes have altered the Internal Revenue Service's rules regarding alimony as a deduction. If you have been paying alimony to an ex-spouse after to 2018 it may qualify as a tax deduction, however, you are likely still able to take the deduction if you finalized your divorce prior to 2018.
You've received a letter informing you of a tax lien filing against you, because you have unpaid taxes. What this means is that the IRS has publicly declared that they have a claim to your property because of the unpaid debts. But you have options, you can request a hearing with the IRS to discuss the liability and determine how to make payment towards the balance.
Receiving any notice from the Internal Revenue Service (IRS) is always stressful, but a letter threatening to levy your property is frightening. But don't panic. You have options with the IRS to resolve the amount owed on the unpaid taxes and prevent a levy on your home.
Section 7212 of the Internal Revenue Code makes it possible for the government to take action against individuals who attempt to to interfere with a federal government officials capacity to enforce the code.
A new law set to take effect January 2023 may reduce a cryptocurrency holders' ability to evade paying taxes on their holdings and transfers.
The Internal Revenue service considers tax liability community property, meaning one spouse can be held liable for what the other owes to the IRS after marriage.
We could see an increase in criminal charges as the Internal Revenue Service scrutinizes tax-deferred retirement accounts for potential fraud.
Filing for bankruptcy, in some cases, may be a way for you to discharge some of your tax debt on state and federal levels. But there are aspects that need to be considered in order to determine if the tax debt is dischargeable or not. For example, in most cases federal tax debt can be discharged if the returns need to be filed on time and the debt needs to be at least three years old.
The corporate transparency act is a new federal disclosure requirement for companies requiring companies to be identify their beneficial owners. The act is to assist law enforcement and local agencies discover who are beneficial owners of corporations to prevent them from disguising any illegal acts made by the corporation.
Because foreign trusts have different taxation requirement, it is important to note the difference between a U.S. domestic trust and a foreign trust. There are a couple tests you can use to make this distinction, one is by determining if a U.S. court has jurisdiction over the trust and another is by determining who holds the decision making powers for the trust. Knowing the difference helps to comply with tax requirements for foreign trusts.
Recently we have seen an increase in IRS Letter 4523, informing tax preparers they intend to conduct a comprehensive interview regarding concerns about returns they've prepared within the last three years. The preparer may face a penalty depending on the IRS's determinations. It is important to understand your options should you receive an IRS Letter 4523.