Key Takeaways Switching from a sole proprietorship to an LLC or S corporation is a smart move for many growing businesses. But it’s also one of the most common points where tax penalties quietly creep in. If you’re not careful, a structural change meant to protect your business can end up costing you thousands in … Read more
Key Takeaways If you’re a small business owner (or self-employed and have employees), you’re likely familiar with payroll taxes. But what many business owners don’t realize (often until it’s too late) is that when payroll tax deposits go unpaid, the IRS can assess a personal penalty called the Trust Fund Recovery Penalty (TFRP). At that … Read more
Key Takeaways If you’re a business owner with employees, you’ve probably heard the usual advice about staying compliant with payroll tax rules: deposit on time, file your returns, and don’t fall behind. Sounds simple enough. But what the IRS won’t tell you in its notices, and what many online content glosses over, is how quickly … Read more
Key Takeaways The Stakes Are Higher Than You Think If you’ve opened your mailbox and found an IRS audit letter that says “office” or “field audit,” take a deep breath. Then take another one. These audits are not the same as the routine mail audits you may have read about. Office and field audits are … Read more
Key Takeaways If an IRS audit feels stressful, getting hit with an accuracy penalty can take it up a notch. These penalties, usually 20% of the underpayment, pile on top of any additional tax you owe and can add thousands of dollars to the bill. The IRS uses these penalties to discourage taxpayers from being … Read more
Key Takeaways You open your mailbox and see it: an IRS envelope. Suddenly, your day goes from “pretty good” to “what did I do wrong?” Before you start imagining the IRS showing up at your door, take a breath. Not every IRS letter means you’re under audit. Some letters are routine; others need quick action. … Read more
Key Takeaways Why You Should Pay Attention to Audit Triggers If you’re a high-income earner or a small business owner, the IRS has a special place for you: right in their “let’s take a closer look” file. Thanks to new funding under the Inflation Reduction Act, the IRS is hiring more agents and upgrading tech, … Read more
Key Takeaways The first thought most people have when they receive an IRS audit notice (after asking “Why me?”) is usually, “How long is this going to take?” Unfortunately, the answer isn’t as simple as a number of days on a calendar. The length of an audit depends on several factors, like the type of … Read more
Key Takeaways A rejection doesn’t always mean you’re out of options. Sometimes, the IRS signals that you didn’t meet the strict criteria or the offer you submitted wasn’t strong enough. Other times, the issue is procedural, not financial. Knowing why your offer was rejected is the first step toward deciding whether to appeal, re-submit, or … Read more
Key Takeaways When Paying the IRS Just Isn’t Possible If you owe back taxes and have researched the IRS Offer in Compromise, you’ve probably realized it’s a long shot for most people. The IRS accepts only a small percentage of OIC applications, leaving many taxpayers wondering what to do next. If you truly can’t afford … Read more
Key Takeaways Most people who apply for an IRS Offer in Compromise (OIC) are turned down. The program sounds appealing when you hear, “settle your tax debt for less,” but the IRS has strict rules and uses a formula to decide if you qualify. When your offer is rejected, it feels discouraging. Let’s go through … Read more
Key Takeaways The Harsh Reality of IRS Rejections Each year, thousands of taxpayers apply for an Offer in Compromise (OIC) hoping to settle their IRS debt for less than they owe. And each year, most of those requests are denied. In fact, in 2024, 4 out of 5 OIC applications were rejected by the IRS. … Read more
Key Takeaways Introduction If you’ve been researching the IRS Offer in Compromise (OIC) program and just found out you don’t qualify (or had your offer rejected) you’re not alone. Each year, tens of thousands of taxpayers explore the OIC hoping to settle their tax debt for less than they owe. But in reality, most people … Read more
Key Takeaways Why the Timeline Matters Submitting your Offer in Compromise (OIC) to the IRS might feel like crossing the finish line. You gathered all your financial records, completed the forms, and mailed your offer. But in reality, that’s only the starting point of a longer process. Once the IRS receives your offer, it enters … Read more
Key Takeaways If you owe the IRS more than you can reasonably afford to pay, an Offer in Compromise (OIC) may seem like your golden ticket to a fresh start. But before you start calculating what to offer, take a step back. The IRS OIC program follows a strict two-part evaluation process. First, they determine … Read more
Key Takeaways Why It Matters If you owe back taxes and feel like there’s no way out, you may have come across the IRS Offer in Compromise (OIC) as a potential solution. On paper, it sounds too good to be true: you could settle your tax debt for less than what you owe (or as … Read more
Summer jobs and freelance gigs offer flexibility and extra income, especially for students, young adults, or anyone looking to make the most of their time off. But whether you’re scooping ice cream, walking dogs, tutoring online, or designing websites, one thing is crucial: tracking your income. It’s not just about staying organized. There are important … Read more
Business taxpayers must file and pay many different types of taxes. The two most common taxes paid by businesses are income taxes and employment (payroll) taxes on their employees. Businesses may also be liable for excise and other specialty taxes, depending on their industry. Self-Employed Taxpayers Most self-employed taxpayers pay their business taxes on their … Read more
Most taxpayers contact the IRS to get information about their taxes (payments, filings, etc.), respond to a notice, or deal with a compliance issue or obligation. A taxpayer has 3 options for taxpayer service: In-Person: Local IRS Taxpayer Assistance Centers (TACs) You can visit one of the 360+ Taxpayer Assistance Centers (TACs) across the U.S. … Read more
An IRS audit, or “examination” in IRS talk, happens when the IRS wants to check if your tax return is accurate. An IRS auditor, like a tax examiner or revenue agent, will review your records to make sure everything adds up. If they find errors on your tax return, they will propose an “adjustment” and … Read more