Crash Course: The Difference Between an IRS Lien and IRS Levy Explained

The IRS threatens a variety of consequences for nonpayment of taxes. While penalties and interest may be the first course of action, liens and levies are distinct possibilities for large balances not paid over a long period of time. While these repercussions hold many similarities, they’re quite different in practice, as highlighted below. Levies Versus […]

How Business Cash Flow Problems Cause IRS Problems

Cash flow struggles lie at the heart of operations for many small and midsize businesses. These problems don’t just make it tough to pull a profit; they can lead to a variety of IRS concerns, as discussed below: Issues with Estimated Taxes The IRS deals with irregular business income, in part, by arranging for quarterly […]

IRS Form 941-X: Your Tool For Fixing IRS Form 941

Let’s face it: IRS Form 941 is downright confusing. Filed quarterly to report on withheld income and FICA taxes, this document outlines what, exactly, has been withheld from employee pay. Unfortunately, opportunities for errors are abundant, even among the most conscientious, detail-oriented employers. As an employer eager to avoid problems with the IRS, the prospect […]

How to Choose the Right IRS Enrolled Agent

Tax issues can quickly turn your life upside down. When the IRS comes knocking, it’s never wise to answer alone. An IRS enrolled agent can spell the difference between a devastating, anxiety-inducing ordeal and a manageable tax issue. Choosing to work with an IRS enrolled agent is the easy part; selecting one can be trickier. […]

What NOT to Do If You Owe the IRS

According to a spokesperson for the IRS, 8.2 million Americans owe back taxes. Some take active measures to deal with the situation, but others assume they can hide out and avoid the IRS indefinitely. That’s not a wise approach for dealing with tax debt. The following are among the greatest mistakes you can make if […]

How Long Does the IRS Have to Pursue a Balance That You Owe?

If you owe a balance to the IRS, you may be tempted to hold off on paying until collection on that balance is no longer possible. Unfortunately, if that’s your plan, you are in for a long wait. During that time, you risk interest payments, liens, levies, and a whole host of other devastating consequences. […]

How Much Do You Owe the IRS? Here’s How to Check

You’re convinced that you’re behind on your taxes, but not sure what you owe. While any back taxes should be cause for concern, the urgency of the matter can vary drastically based on how much you owe. Thankfully, this doesn’t have to be a mystery; the IRS provides plenty of opportunities to determine what you […]

The Role of the IRS Revenue Officer

IRS scams abound, so it’s no wonder you think twice when a civil employee demands payment. Not all IRS employees should frighten you, however. It helps to understand the differences between IRS employees—and the unique role IRS revenue officers play in collection. A Day in the Life Revenue officers take on a variety of roles, […]

The IRS Could Have Decades to Collect Payroll Taxes Owed

If you owe back taxes, you’re certainly not alone; data from the IRS indicates that over 18 million Americans owed delinquent taxes as of 2014. Furthermore, 10 million taxpayers face penalties every year. What, then, happens to those who fail to pay up? Unfortunately, the consequences can be harsh — and there’s no running away […]

How Does a Divorcing Couple Split Up Their IRS Debt?

Dividing property in a divorce is difficult enough as is, but dealing with shared IRS debt can be a nightmare. Whether you resolve these issues in mediation or in court, you’re bound to find this process frustrating. The better you understand the role IRS debt plays in your divorce, the easier you’ll find it to […]