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 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 »
Key Takeaways The IRS will never call demanding immediate payment; all legitimate tax debt contact begins with a mailed notice, not a phone call. Tax scam calls rose 62% from 2024 to 2025, and in 2025 alone, nearly 1 in 5 U.S. adults reported being targeted by a tax-related scam. AI-powered voice mimicry and spoofed
Beware of IRS Telephone Scam With Threat of Arrest or Jail Read More »
Key Takeaways A Notice of Federal Tax Lien (NFTL) attaches to virtually all your assets, real estate, vehicles, and financial accounts once filed by the IRS. You can sell your house or vehicle with a tax lien, but IRS approval is required; the most common path is a Certificate of Discharge via Form 14135.
How to Sell an Asset That is Subject to a Notice of Federal Tax Lien Read More »
Key Takeaways IRS Revenue Officers can issue serious threats, including property seizure, wage garnishment, and business closure, but these actions follow strict legal procedures. Ignoring IRS notices or summonses can worsen your situation, while prompt action and cooperation can prevent severe consequences. Tax liens and levies are common collection tools; retirement accounts and Social Security
IRS Threats: What Can They Really Do to Me? Read More »
Key Takeaways Choosing the right IRS tax professional can significantly reduce your tax debt and prevent costly mistakes, especially when dealing with IRS collections or negotiations. Certified Public Accountants (CPAs), Enrolled Agents (EAs), and tax attorneys all have legal authority to represent taxpayers before the IRS, but their experience levels and specialties vary. Always verify
How to Choose an IRS Tax Professional Read More »
Key Takeaways Innocent Spouse Relief can remove or reduce IRS tax liability if your spouse or ex-spouse caused tax errors without your knowledge. Filing a joint tax return makes both spouses fully responsible for the total tax debt, even after divorce or separation. The IRS provides three types of relief: Innocent Spouse Relief, Separation of
Innocent Spouse Relief Can Relieve Your Spouse of a Joint IRS Liability Read More »
Key Takeaways IRS Installment Agreements and Offers in Compromise require strict tax compliance before any relief option can be approved. Tax compliance includes filing all required tax returns and staying current on federal tax deposits or estimated payments. Individuals must meet quarterly estimated tax payment requirements if withholding does not cover expected tax liability. Businesses
Key Takeaways Many S Corporation owners make the mistake of paying themselves very low wages or none at all to reduce payroll taxes, not realizing this can invite serious IRS scrutiny. The IRS considers most S Corp shareholders who perform regular business duties as employees, requiring them to pay “reasonable compensation.” Failure to pay reasonable
Exploring the Consequences of Paying S Corporation Shareholders Unreasonably Low Wages Read More »
Summary Owing back taxes doesn’t always mean you have to pay the full amount—several IRS-approved programs can significantly reduce your liability. Programs like Offer in Compromise (OIC) and Penalty Abatement can help taxpayers legally cut their debt. Updated IRS guidelines in 2026 make it easier for financially struggling taxpayers to qualify for relief. The Partial Payment
How to Reduce an IRS Tax Liability (Top 5 Ways) Read More »
Key Takeaways The IRS typically files tax liens 4-6 months after sending initial tax due notices, though they can legally file much sooner Tax debts under $10,000 rarely trigger lien filings, and amounts under $50,000 may avoid liens with proper installment agreements Federal tax liens become public record and can block loans, mortgages, and refinancing
When Does the IRS File a Tax Lien? Read More »
When a taxpayer has an unpaid, legally enforceable federal tax liability (including interest and penalties) that meets certain thresholds and collection criteria, the IRS may certify the debt as “seriously delinquent.” Once a tax debt is certified as “seriously delinquent,” the chances of enforced collections such as bank levies, garnishments, and asset seizures increase significantly.
What Triggers the “Seriously Delinquent Tax Debt” Designation Read More »
Summary The Taxpayer Advocate Service (TAS) is an independent IRS organization that helps taxpayers facing financial hardship or unresolved IRS problems. TAS representatives can intervene in cases like levies, wage garnishments, or delayed Offers in Compromise to speed up resolution. It acts as a bridge between taxpayers and the IRS, ensuring fair treatment and timely
Taxpayer Advocate Service Read More »
Summary Taxpayers with serious IRS debt may qualify for an Offer in Compromise (OIC), which lets them settle for less than the full balance owed if they meet strict eligibility requirements. To be considered, taxpayers must maintain filing compliance (all tax returns filed) and deposit compliance (current with estimated payments and withholdings). The IRS bases
How to Settle Tax Debt Read More »
Summary The IRS allows taxpayers to settle their tax debts for less than the full balance through the Offer in Compromise (OIC) program. Net Realizable Equity (NRE) is a key factor in determining eligibility, as it represents the collectible value of assets after discounts and debts. Updated 2025 IRS rules place more emphasis on accurate
Net Realizable Equity Read More »
Summary The IRS “Dirty Dozen” list warns taxpayers about the most dangerous tax scams each year. In 2025, scams like identity theft, phishing, and phone impersonation remain top threats. Statistics show tax-related phishing attempts have surged nearly 360% in the past two years. Protecting yourself requires early filing, secure communication, and choosing trusted professionals. If
How To Defend Yourself Against The Dirty Dozen Tax Scams Read More »
Summary The majority of IRS installment agreements default before completion, leaving taxpayers exposed to aggressive collection actions. Notice CP523 is issued when an agreement defaults, giving taxpayers 30 days to respond before enforcement resumes. In 2025, with IRS funding expanded, enforcement actions like levies, liens, and wage garnishments are at record highs. Defaults often result
IRS Installment Agreement Defaults Read More »
Summary Discover why outsourcing payroll in 2025 is more cost-effective than handling it in-house. Learn how payroll outsourcing helps businesses avoid costly IRS penalties and compliance risks. Understand the security benefits and fraud-prevention technology used by payroll providers. Explore how outsourcing payroll saves time, reduces stress, and allows owners to focus on growth. Get practical
Six Reasons for Payroll Outsourcing 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 »
