One of the biggest mistakes taxpayers make is failing to pay their back taxes. This is a common problem for many Americans, especially those who are self-employed or have multiple sources of income. When you owe back taxes, it can be tempting to ignore the problem and hope it goes away, but this is not a good strategy and will just make the situation worse. In this blog post, we will discuss the consequences of avoiding paying back […]
What Income Are You Required to Pay Tax On?
In general, income can be received in three ways – money, services, and property – and IRS requires you to declare most of this income on your tax return. Income is taxable unless specifically exempted by law, and in some cases, even nontaxable income must be disclosed on your tax return. Taxable Income Typically, the […]
Add Security to Your Tax Filings: Obtain an Identity Protection PIN
If you are the victim of identity theft or wish to add a layer of security to your future IRS filings, you can request an Identity Protection PIN (IP PIN) from the IRS. This security feature for taxpayers will prevent someone else from using your Social Security number to fraudulently file a tax return on […]
Is Your Business Considered a Hobby by the IRS?
Are you running a business? Or just having fun with a hobby? The IRS has strict rules for determining the difference between a business and a hobby for tax purposes. While expenses incurred to conduct a business are deductible, expenses incurred for a hobby may not be, causing your taxes to increase. A person that […]
IRS Offers Several Ways To Pay Off Delinquent Tax Debt
It’s no secret that millions of taxpayers struggle to pay their taxes. The IRS is unyielding when it comes to collecting money they think is theirs, so if you’re facing back taxes owed the federal government highly advises seeking assistance as soon as possible before they resort to aggressive measures like taking money out of […]