Educational Tax Tip: Can the IRS Levy a Joint Bank Account?
Sharing a bank account with a spouse, family member, or roommate? Even if the tax debt is only yours, the IRS can potentially levy funds from a joint account to satisfy your liability. Federal rules generally allow the IRS to take your portion of the account, but the co-owner’s funds may be protected if they can prove their ownership. Acting quickly can help protect both your finances and your co-owner’s. Need guidance on protecting joint accounts or exploring tax relief options? Visit our website and
Educational Tax Tip: What Happens If the IRS Rejects Your CNC Request
Did the IRS deny your request for Currently Not Collectible (CNC) status? This usually means they believe you can afford to make payments based on your reported income, expenses, or assets. If your situation changes or you believe your financial hardship was not properly reflected, you can reapply with updated documentation or explore other resolution options like an installment agreement or Offer in Compromise. Acting quickly is key to avoiding enforced collection actions. Need help reapplying or
Educational Tax Tip: How to Handle IRS Notices About Missing Forms
Did you receive an IRS notice about a missing Form 1099 or W-2? These letters are typically sent when the income reported to the IRS doesn’t match what you included on your tax return. Don’t panic—start by reviewing the notice and comparing it to your records. If you accidentally left out a form, you may need to file an amended return. If you believe the IRS is wrong, gather your supporting documentation and respond by the deadline provided. Ignoring the notice can lead to adjustments, penalties, and
Educational Tax Tip: How to Protect Yourself During a Field Audit
Have you ever wondered what to do if the IRS shows for a field audit? Don’t panic—the IRS never arrives unannounced. Field audits are scheduled only after several letters and notices are sent. To protect yourself during these in-depth examinations, keep your records organized, respond to questions truthfully but briefly, and avoid volunteering extra details. It’s strongly recommended to work with a tax professional throughout the process to ensure you're prepared and your rights are protected. If you’ve
Educational Tax Tip: How the IRS Calculates Penalties
Do you know how quickly penalties and interest can add up on unpaid taxes? The IRS can charge two separate penalties: one for filing late and another for paying late. The failure-to-file penalty is typically 5% of the unpaid taxes per month (up to 25%), while the failure-to-pay penalty is 0.5% per month (also up to 25%). On top of those, daily interest accrues on the total balance due. These charges can build up fast, turning a manageable debt into a much larger burden. Want help avoiding or resolving
Educational Tax Tip: Understand the Business Tax Levy
Do you know what can happen if a business falls behind on any type of tax payments? When businesses fail to comply with tax obligations like corporate income taxes or payroll taxes, the IRS can issue a business tax levy. This allows the government to seize business assets, freeze accounts, or even suspend operations to recover unpaid taxes. The financial impact can be severe, potentially disrupting daily activities or damaging the long-term health of the business. Staying current with your tax
Educational Tax Tip: How the IRS Applies Your Tax Refund When You Have Debt
Do you know what happens to your tax refund if you owe back taxes or other federal debts? When you’re entitled to a refund, the IRS can automatically apply it to any unpaid federal or state taxes before you receive it. If your refund is not enough to cover your total debt, you may still owe the remaining balance. If you’re expecting a refund but have outstanding tax liabilities, don’t be caught off guard! Want to know if your refund is at risk of being taken? Visit our website and contact us today for
