Why do people end up in tax debt

Why do people end up in tax debt? New research has shown the most common reasons for people getting into debt with the IRS and state tax authorities. These are earning more income than expected, divorce, late payment penalties and unfiled tax returns.   How to avoid a tax debt – excess income The research showed […]

IRS owed 441 billion

New research across the United States estimates that the IRS is owed a whopping $441 billion in unpaid taxes. The majority of those (65%) are in households of $75,000 or less. Could you be one of those? If so, read on to see what you could do about it! Facts and figures A third of […]

The most common IRS tax audit triggers

The IRS has a computer system called the Discriminant Information Function (DIF) that detects anomalies in all tax returns which may lead to an audit. Watch out for the following things that trigger an audit that may cause you a lot of stress.  Duplication of information. If you and another person claim the same dependent, […]

Executive Order tax debt

The Federal tax debt many people will not be able to avoid… Everyone likes a tax cut – but what if it isn’t a real one? If you are a Federal government employee there’s a likely tax debt that you will have to deal with whether you like it or not – the Payroll Tax […]

U.S. taxes for citizens working in other countries

If you are an American working in another country, here is what you should know in order to remain tax compliant and to reduce your US tax burden. 1. If your foreign income exceeds the filing threshold, file a Federal Tax Return every year. The deadline for expats is June 17th. If you are eligible […]

How to stop an IRS tax levy

When you receive notification of a tax levy on your property, don’t panic. The IRS can release a levy if it determines that: You paid the amount you owe, The statute of limitations has expired before the levy was issued, Releasing the levy will enable you pay your taxes, You have entered an Installment Agreement […]

Best ways to urgently solve IRS or State tax levy

A tax levy against your property gives the IRS or the state tax office the right to seize your property in order to collect back-taxes. You may receive a wage garnishment, a 1099 levy on your receipts if you are self-employed, a bank account levy, property (home, boat, car, etc.) seizure, and passport seizure to […]

Difference between state tax and federal tax

In the US, taxes are levied by federal, state and sometimes local governments. The only similarity between federal and state income taxes is that they apply a rate to taxable income. However, they differ significantly on the type of income that is taxed, the deductions and tax credits that are allowed, the rates of taxation […]

13 million Americans in tax debt

Over 13 million Americans are in Tax Debt: Could You Need Help? In a recent data release, the IRS showed that over 13.1 million people in the United States have some form of tax debt. Some 7.93 million accrued that debt in tax year 2018-19. Could you be among them? If so, you may need […]

Property forfeiture

Pay your property taxes or lose your home! Here in the United States, 13 states have the power to sell your property to pay unpaid property taxes. In one recent case (later overturned) a $28,000 home was sold to pay a state tax debt of just $8! As we frequently show in our blog here […]