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
Educational Tax Tip: How the IRS Contacts You—And How They Don’t
Have you ever received a call from someone claiming to be the IRS? Don’t panic! The IRS does not initiate contact by phone, text, or email to demand payment or personal information—such scams are on the IRS’s Dirty Dozen list of common frauds. The IRS typically communicates through official letters first, but in certain cases, such as audits or overdue tax bills, they may call or visit after sending notices. If you receive a suspicious call claiming to be from the IRS, do not provide any information—hang
Educational Tax Tip: Managing Late Payments on an IRS Installment Plan
Is there a grace period if you can’t make your IRS installment payment on the due date? Yes, the IRS allows a 30-day grace period to make your missed payment without canceling your agreement. However, this does not push back your next payment, and if the missed amount is not paid within the grace period, the IRS can terminate your plan. Reinstating a canceled agreement is not guaranteed and could result in severe financial consequences. To avoid issues, make payments on time and, if possible, pay more
Educational Tax Tip: Understanding IRS Notice CP75
Have you received an IRS Notice CP75 and you don’t know what to do? These notices typically request additional documentation to verify tax credits like the Earned Income Credit (EIC) or Additional Child Tax Credit (ACTC). If you receive one, read it carefully, gather the requested documents (such as proof of income or dependent eligibility), and respond by the deadline—usually within 30 days. Failing to reply could result in the IRS adjusting your return and reducing your refund. Need help responding to
Educational Tax Tip: How Can You Avoid an IRS Levy?
Worried about an IRS levy? The best way to prevent one is to file your tax returns on time and pay what you owe. If you can’t pay in full, don’t ignore IRS notices—pay as much as possible and explore options like a payment plan or tax relief programs. These might allow you to settle your debt for less or make monthly payments, but you must act quickly. Receiving a Final Notice of Intent to Levy means time is running out, so contact a tax professional immediately to get help Need help dealing with an IRS
Educational Tax Tip: Filing Taxes When You Owe the IRS
Owe taxes from previous years and wondering if you should still file your current return? The answer is yes! Failing to file only makes things worse—the IRS imposes a 5% penalty per month (up to 25%) on unpaid taxes if you don’t file, plus interest on the balance. Even if you can’t pay in full, filing on time helps reduce penalties and keeps you compliant. The IRS also looks more favorably on taxpayers who stay current with their filings when considering payment plans or other relief options. Ignoring tax
