Key Takeaways The IRS tax laws provide that “a seriously delinquent tax debt” is a specific category of tax debt which, when “certified” by the IRS to the State Department, will typically prevent the tax debtor from being approved for a new passport or have an existing passport renewed. If you owe the IRS more
Seriously Delinquent Tax Debt? UNDERSTANDING IRS LETTER 6305 Read More »
Key Takeaways The IRS now runs over 126 active AI use cases from audit selection to automated levy decisions and enforcement timelines have shrunk dramatically. A projected annual gross tax gap of $696 billion is what’s fueling this unprecedented IRS tech investment in 2026. Automated levies can now hit your bank account or wages with
New IRS Technology in 2026: AI Tracking, Automated Levies & Compliance Read More »
Key Takeaways Jail time for unpaid IRS taxes is rare, typically tied to willful tax fraud, evasion, or court contempt. Most IRS actions are civil, such as liens, levies, and wage garnishments, not criminal prosecution. Repeated non-compliance, especially with payroll taxes, can lead to court orders and even arrest. Ignoring administrative summonses or federal subpoenas
Can I Wind Up in Jail or Prison for Unpaid IRS Taxes? Read More »
Key Takeaways Businesses can settle IRS tax debt for less than the full amount through an In-Business Offer in Compromise (OIC) if the IRS determines the full balance cannot realistically be collected. IRS approval requires full compliance first, including filing all tax returns, staying current on payroll tax deposits, and resolving any Trust Fund Recovery
Can My Business Settle IRS With Business Offer in Compromise? Read More »
Key Takeaways Using a payroll service does NOT remove your IRS responsibility – even if the provider makes a mistake, the IRS holds the business owner personally liable for unpaid payroll taxes. Payroll errors can trigger massive penalties fast – late deposits can lead to 2%–15% penalties plus ~7% interest, and combined issues can turn
Why You Can’t “Set It and Forget It” With A Payroll Service Read More »
Summary Understanding the critical role of IRS Settlement Officers in resolving tax disputes. How the IRS chain of command impacts tax relief efforts, including Offers in Compromise. The importance of persistence and thorough preparation when appealing IRS decisions. Key updated 2025 IRS procedures and facts related to tax settlements and appeals. Professional guidance is vital
IRS Settlement Officers Read More »
Summary Owing $50,000 or more in taxes can trigger severe IRS actions, including liens, levies, wage garnishments, and asset seizures. IRS penalties such as failure-to-pay, underpayment, and dishonored payment penalties can significantly increase your debt if unaddressed. Tax resolution options include installment agreements, partial payment plans, offers in compromise, and Currently Not Collectible (CNC) status.
What If I Owe the IRS $50K or More in Taxes? Read More »
Summary If you can’t pay your 1040 tax by April 15th, filing a return or extension is critical to avoid failure-to-file penalties. Partial payments can significantly reduce penalties on unpaid taxes. The IRS allows penalty abatement for “reasonable cause,” with 85% of requests approved in 2024 when properly documented. Installment agreements and Offers in Compromise
It’s Almost April 15th, and I Can’t Pay My 1040 Tax. What Do I Do? Read More »
Summary Currently Not Collectible (CNC) Status is a temporary IRS designation indicating a taxpayer cannot pay their tax debt due to financial hardship. It does not eliminate the debt but delays collection efforts. Eligibility Criteria include demonstrating that your income and necessary living expenses are insufficient to cover your tax liabilities. The IRS may require
Can I Resolve Back Taxes By Qualifying For Currently Not Collectible Status? Read More »
Summary IRS can freeze your business bank account for up to 21 days to collect unpaid taxes in 2025. A Final Notice of Intent to Levy is required at least 30 days prior to the action. You have an opportunity to request a Release of Levy during the freeze period. Acting quickly and having proper
21 Days to Recover Your Money (from an IRS Levy on Business Bank Account) Read More »
Summary As of September 2025, cannabis remains classified as a Schedule I controlled substance under federal law, making Section 280E applicable to marijuana businesses. Section 280E prohibits deductions for ordinary business expenses, allowing only the deduction of Cost of Goods Sold (COGS), leading to significantly higher effective tax rates for cannabis businesses. The IRS continues
Marijuana Business Tax Blues in Oregon, Washington, California & Colorado Read More »
Summary IRS Bank Levy Freezes Funds: When the IRS issues a bank levy, your bank holds your account funds for 21 days before transferring them to the IRS, giving you time to respond. Final Notice Requirement: The IRS must send a Final Notice of Intent to Levy at least 30 days prior, giving you the
IRS Bank Levy – Now What Do I Do? Read More »
Summary A Federal Tax Lien (NFTL) is filed by the IRS when tax debts remain unpaid, creating a claim against your property. The Release of Lien occurs after full payment of your tax debt, allowing asset sales and improved credit standing. Lien Discharge enables the sale of specific property even if the tax debt isn’t
Summary IRS levies and garnishments can severely impact your finances if not managed properly. Staying in regular contact with the IRS and understanding your rights are crucial. Options like Installment Agreements, Currently Not Collectible (CNC) status, and Offers in Compromise can prevent or stop levies. Demonstrating economic hardship is a powerful tool to obtain levy
7 Effective Methods of Avoiding IRS Levies and Garnishments Read More »
Summary You can designate voluntary IRS payments to specific tax periods, penalties, or interest to minimize penalties and control your tax debt. Without designation, the IRS applies payments in its best interest, often increasing your penalty costs. Strategic payment allocation focuses on recent tax periods, reducing the risk of penalties reaching the maximum. Understanding the
IRS Installment Payments: Can I Avoid Back Tax Penalties Read More »
Summary The IRS has the legal authority to seize assets, garnish wages, or levy bank accounts for unpaid taxes, but only after following a strict legal process. Understanding the IRS’s procedures helps alleviate anxiety and empowers taxpayers to protect themselves. The IRS must issue a Final Notice of Intent to Levy and allow a 30-day
Notice of Levy: Will the IRS Seize My Assets Because of My Unpaid Taxes? Read More »
Summary IRS collection notices can be overwhelming and stressful for taxpayers. Some notices require immediate attention to avoid severe consequences like liens or levies. Key notices include CP14, 500 Series, Letter 1058, Letter 1153, Letter 3172, and Form 668. Understanding your rights and available relief options can help manage IRS actions. Contact a tax resolution
6 IRS Collection Notices You Absolutely Need to Notice Read More »
Summary An IRS tax levy allows the government to seize property or assets to satisfy unpaid tax debts. The IRS follows strict due process rules, including sending multiple notices before imposing a levy. Common types of levies include wage garnishment, bank levies, retirement account levies, and federal payment levies. Certain property is exempt from IRS
Comprehensive Guide to IRS Tax Levies Read More »
Summary: This comprehensive guide helps you navigate the complex world of tax debt relief by highlighting the top 20 reputable companies in the industry. It offers practical tips on selecting a trustworthy tax relief provider, emphasizing the importance of accreditations, experience, and transparent fees. The article provides an in-depth overview of the IRS’s current tax
Top 20 Tax Debt Relief Companies Read More »
Summary IRS Tax Settlements, also known as Offers in Compromise (OIC), allow taxpayers to settle their tax debts for less than the full amount owed. Three main types of OICs exist: Doubt as to Collectability, Doubt as to Liability, and Exceptional Circumstances. Qualifying for a tax settlement requires compliance with IRS rules and a thorough
IRS Tax Settlements Read More »
