Educational Tax Tip: Managing IRS Payment Plans
Have you ever wondered if you can have more than one payment plan with the IRS? The answer is no—typically, the IRS doesn’t allow multiple installment agreements at the same time. Instead, they may let you consolidate all your tax debts into one agreement or approve a step-by-step payment arrangement. To qualify, you must show a genuine effort to pay and prove financial hardship. Defaulting on any agreement could lead to collection actions and ongoing penalties. Need help negotiating a payment plan that
Educational Tax Tip: Understand the Different Types of Tax Levies
Have you ever heard about the different kinds of tax levies the IRS or state agencies can impose? Depending on your situation, the IRS or state can seize wages, bank funds, property, or even business assets to collect unpaid taxes. For example, a property tax levy can affect your real estate, while an income tax levy might lead to wage garnishments or bank account seizures. Businesses can also face sales tax or business tax levies that put operations and assets at risk. Each type carries serious
Educational Tax Tip: Responding to IRS Notice CP09
Did you receive IRS Notice CP09 and wonder what it means? This notice informs you that you may qualify for the Earned Income Credit (EIC), a refundable tax credit that could increase your refund. It includes a questionnaire to help determine your eligibility. If you qualify, simply complete, sign, and return it to the IRS to claim the credit. Ignoring this notice could mean missing out on money you’re entitled to. Received an IRS Notice and don't know how to handle it? Visit our website and contact us
Educational Tax Tip: IRS Letter 531 – Act Fast to Protect Your Finances
Do you know what an IRS Letter 531 means? This notice informs you of a tax deficiency after an audit and gives you 90 days to petition the U.S. Tax Court if you disagree. Ignoring it means the IRS will assess the tax and send a bill, which can lead to additional interest and penalties. If you choose not to contest and agree with the IRS's findings, you can sign the enclosed waiver form – this may help limit the amount of interest that accrues on your tax balance. Taking action quickly is essential to
