Have a tax debt near $50,000? You may find yourself unable to travel. In December, President Barack Obama signed a 5-year infrastructure spending bill. Sandwiched within this bill aimed to improve our nation’s highway and transit systems, was an IRS passport law.
When it comes to taxes, there are a few things you may have overlooked. Here are some pieces of advice that can help you save money down the line, and keep your business protected from penalties when tax season rolls around.
Beginning January 1, 2022, third party settlement organizations have a requirement to issue a Form 1099-K to payees who have business transactions of more than $600 in a calendar year. (The previous threshold was either 200 transactions or $20,000 in payments in a calendar year, but the law was updated per The American Rescue Plan Act of 2021.)
Many taxpayers who owe back taxes to the Internal Revenue Service (IRS) will receive a notice of tax due and attempt to resolve the issue themselves. If you owe an amount less than $10,000 this makes sense. However, when the liability exceeds $10,000, it's always a good idea to seek professional representation.
Our clients hire us for representation during different moments of their tax resolution cases. Some taxpayers have all their tax returns filed, but have tried for years to work out a resolution with the IRS without any success. Some find us here at Direct Tax Relief when they have several years of unfiled tax returns they need prepared. And there are those who went through an audit and then realized how serious the consequences are of not having professional representation and hired our firm to help after the fact.
Owing the IRS money is a stressful process. Adding long wait times to that process just makes the stress even worse. But, as many people have experienced recently, long wait times for tax documents processing have become a common problem. This isn’t just because the IRS wants to make you wait. They are working hard to fix the problem, even if it may not seem that way to everybody.
If you have ever had a tax bill you couldn’t afford to pay, don’t be swayed by false ads promising “total IRS debt forgiveness.” In most cases, complete forgiveness of tax liability — except in the case of bankruptcy — is unlikely. But don’t think that you’re out of options just yet.
Tax debt can be scary. Nobody wants to owe the IRS money, but sometimes it happens. And if it does happen, you don’t have to face the IRS alone. Founded in 2008 by seasoned tax professionals with wide experience and top credentials, our expert tax professionals are dedicated to helping individuals and small businesses who owe more than $10,000 in back taxes.
The IRS Fresh Start program makes it easier for taxpayers to pay back taxes and avoid tax liens. Even small business taxpayers may benefit from Fresh Start.
How much of your paycheck you'll keep under Clinton and Trump. The Obama years saw the Bush tax cuts made permanent for all but the wealthiest, plus new Obamacare levies. Now the question of how much of your paycheck you’ll get to keep—and who should pay more or less—is back on the table in a big way.
