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: Understand What an IRS Extension Really Means
Do you know what happens if you request an IRS extension but don't pay your taxes by the deadline? Filing an extension gives you more time to submit your return, but not more time to pay any taxes you owe. The IRS still expects payment by April 15, 2025. If you miss this deadline, penalties and interest will start to accrue on your unpaid balance — even if you filed for an extension. If you need more time to pay, the IRS offers different relief options for taxpayers struggling to pay. Need help finding
Educational Tax Tip: Know the Cost of Filing Your Taxes Late
Do you know how much the IRS can charge you for filing your taxes late? If you miss the deadline and owe taxes, the failure-to-file penalty is typically 5% of your unpaid balance per month, up to a maximum of 25%. And if your return is over 60 days late, you could face a minimum penalty of $510 or 100% of the tax owed—whichever is less. This is on top of interest and other penalties for not paying. Even if you can’t pay in full, filing on time can help you avoid extra costs. Need help addressing a tax
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
