Educational Tax Tip: Short-Term vs. Long-Term IRS Payment Plans
Do you know the difference between an IRS short-term payment plan and a long-term payment plan? A short-term plan lets you repay your tax debt within 180 days with no setup fee, while a long-term plan allows for monthly payments over more than six months but includes a setup fee, which is reduced if you choose automatic Direct Debit payments. Both options accrue penalties and interest, so paying off the debt as quickly as possible is always best. Need help choosing the right payment plan? Visit our
Educational Tax Tip: How to Avoid Audit Trouble with Proper Expense Reporting
Have you ever wondered if estimating your tax deductions might be acceptable? While it might seem easier to guess amounts for categories like business travel or office expenses, using rough estimates can lead to serious issues during an IRS audit. The IRS requires exact figures backed by receipts or other documentation. If your reported numbers don't align with their records, you could face penalties or additional taxes. To avoid this, it is essential to keep detailed records of your expenses and ensure
Educational Tax Tip: Responding to IRS Notice CP 90/CP 297
Have you received IRS Notice CP 90 or CP 297? This “Final Notice of Intent to Levy” means the IRS plans to seize property to settle your tax debt. You have 30 days to act—pay the balance, set up an installment agreement, or propose an Offer in Compromise. You can also request an Appeals Collection Due Process (CDP) hearing to dispute the levy. Ignoring this notice can lead to levies on federal payments or a federal tax lien on your property. Act quickly to protect your assets! Visit our website and
Educational Tax Tip: IRS Audits and Penalties
What happens if you fail an IRS audit? While audits can be intimidating, failing one doesn’t mean it’s the end of the world. The IRS may assess additional taxes, impose penalties, and charge interest on unpaid amounts. In rare cases involving fraud or evasion, more severe consequences like jail time are possible. Typically, the IRS reviews the past three years of returns but can go back six years if discrepancies are found. If you lack receipts, deductions might be denied, though some expense
