The IRS should always follow the same procedure for identifying delinquent taxpayers and determining the collectiblility of tax debt. Unfortunately, according to a recent report, this is not the case.
The IRS loses billions of dollars every year in tax revenue from those who neglect to file tax returns. An audit was done by the Treasury Inspector General for Tax Administration (TIGTA) to determine if the IRS controls were effectively identifying and addressing expired tax filing extensions. The TIGTA found that while the IRS sends proper notification 640,000 nonfilers each year, they missed approximately 1.9 additional taxpayers in 2012 and 2013 combined. As of May of this year, the back taxes for these nonfiling taxpayers equaled $7.4 billion.
When you have a tax issue to resolve, it can be difficult to know if the matter is best resolved through a certified public accountant (CPA) or a qualified tax attorney. In most situations, the particular circumstances will determine if one or the other, or both, are needed.
The IRS is hoping that the third time's the charm with private tax debt collection. Beginning in early 2017, private companies will be hired to pursue old, delinquent, outstanding accounts that the IRS doesn't have time to do itself.
Did you hire a nanny or full-time babysitter to care for your children over the summer break? If so, you may owe a "nanny tax" by the end of September.
With today's technology, it can be difficult to determine if something is real or just a good imitation. This is often the case when you receive a call from someone claiming to be with the IRS - demanding payment for tax debt.
Technology giant Apple, Inc. is in some tax trouble with the European Union (EU), which will end up costing the company billions. On Tuesday, August 30, Apple was ordered to pay up to $13 billion Euros ($14 billion) to Ireland in back taxes.
Under state and federal tax laws, a debt that the creditor forgives the debtor generally is considered taxable income for the debtor. The thinking is that having the debt obligation removed is a financial benefit, even though there is no direct increase in income.
Maryland Gov. Larry Hogan has a message for residents hoping for a lower income tax bill: wait ‘til next year.
Among other things, having the IRS after you for a tax bill can affect your ability to use funds awarded to you in a lawsuit verdict or settlement. Such money is meant to compensate you for some wrong done to you by another party, not enrich you. Being deprived of that money can put a serious strain on your finances.