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Here’s what taxpayer’s should know about penalty relief

After receiving a notice stating the IRS assessed a penalty, a taxpayer should check that the information in the notice is correct. Those who can resolve the issue may get relief from certain penalties, which include failing to: File a tax return Pay on time Deposit certain taxes as required Types of Penalty Relief: Reasonable […]

IRS offers penalty, filing relief to new transition tax on foreign earnings

Section 965 of the Internal Revenue Code, enacted in December 2017, imposes a transition tax on untaxed foreign earnings of foreign corporations owned by U.S. shareholders by deeming those earning to be repatriated. Foreign earnings held in the form of cash and cash equivalents are taxed at a 15.5 percent rate, and the remaining earnings […]

IRS New Strategic Plan; five- year plan to help taxpayers

Goal: To improve taxpayer service and tax administration. Strategic plan developed with input from external partners as well as IRS employees, focuses on six goals that will help improve customer service: Empower and enable all taxpayers to meet their tax obligations. Protect the integrity of the tax system by encouraging compliance. Collaborate with external partners […]

Taxpayers should know the telltale signs of a scam!

Summertime tends to be a period when thieves increase their scam attempts. They try to get people to disclose personal information like Social Security numbers, account information and passwords. To avoid being a victim, remember these telltale signs of a scam. The IRS will never: Call to demand immediate payment using a specific method such […]

Ways to Pay Taxes

Several payment options are available where taxpayers can pay immediately. Taxpayer should not ignore a bill from the IRS because as more time passes, interest and penalties accumulate. Some ways to make payments: Direct Pay. Can pay tax bills directly from a checking or savings account free. Taxpayers receive instant confirmation. With Direct Pay, you […]

How to Get Prior-Year Tax Information

The IRS recommends keeping copies of tax return and supporting documents at least three years. Keep documents-such as those related to real estate sales-for three years after filing the return on which the transaction was reported. Those who need a copy of their tax return should check with tax preparer first. Order a Transcript: Taxpayers […]

Taxpayers Who Owe Taxes Have Multiple Options

There are several easy options to pay taxes electronically. Those unable to pay on time, there are a variety of ways to take care of a tax liability. Tax filing deadline is April 17. Taxpayers who owe taxes can choose: Electronic Funds Withdrawal: allows taxpayer to e-file and pay from their bank account. Direct Pay, […]

Taxpayers have the right to appeal an IRS decision in an independent forum.

The Office of Appeals that handles a taxpayer’s case must be separate from the IRS office that initially reviewed the case. Generally, Appeals will not discuss a case with the IRS to the extent that those communications appear to compromise the independence of Appeals. Points to remember about the right to appeal: Statutory notice of […]

The IRS Will Never:

Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, IRS will first mail a bill to taxpayer who owes taxes. Threaten to immediately bring in local police or other law enforcement groups to have the taxpayer arrested for not paying. Demand taxes […]

Taxpayer Bill of Rights #3

Taxpayers have the right to pay no more than the correct amount of tax they owe. Taxpayers have the right to pay only the amount of tax legally due. Some things taxpayers should know: Taxpayer who overpaid their taxes can file for a refund. Taxpayers must file for a credit or refund by the later […]