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The IRS can file your tax returns for you based on income reported by third parties (jobs, contracts, banks, credit cards, etc…), assess liabilities against you, allow interest and penalties to be imposed and grow and collect then against these liabilities as though you had filed the returns and not paid your tax due. A […]

The following is an attempt to explain the CP series of notifications from the IRS to taxpayers. This is not all inclusive but focuses on notices that lead up to and include the collection process of the IRS. All of them are primarily computer generated. If you respond by telephone, you will be directed to […]

File a Form 843 and wait. The IRS takes your refund if you owe the IRS for back taxes or you owe another state or federal agency a debt. In the latter case, it is an immediate offset by the Federal government and may not necessarily be the IRS that is involved.  In either case, […]

The IRS can file your tax returns for you based on income reported by third parties (jobs, contracts, banks, credit cards, etc…), assess liabilities against you, allow interest and penalties to be imposed and grow and collect then against these liabilities as though you had filed the returns and not paid your tax due. A […]

It can charge interest. It accrues daily. It can charge penalties for failure to file, pay, under-report, etc.… It can audit you. It can file a lien against property you own. If you sell, the IRS can put itself in line to. receive the proceeds before you personally. It can file bank levies and seize […]

There are two primary ways to have penalties abated and refunded or waived. The first is what is referred to as a “First Time Penalty Abatement.” As the term implies, it is available to taxpayers who have shown a record of compliance and good behavior who have made a mistake for the first time. The […]

There are two primary ways to have penalties abated and refunded or waived. The first is what is referred to as a “First Time Penalty Abatement.” As the term implies, it is available to taxpayers who have shown a record of compliance and good behavior who have made a mistake for the first time. The […]

The IRS applies late penalties and interest on a case-by-case basis and will send a separate bill if penalties apply. Because the IRS has the last word on penalties, we can’t calculate the exact amount if your return is late. But the info below will give you an idea of what to expect in a […]

The IRS takes payroll taxes very seriously. The employer is deemed to be holding these taxes in its payroll deposit account in trust for the US government on behalf of the employee. Taking and using the taxes, even if it is to keep the business open, is looked upon as theft and as stealing from […]

This is the first serious step in the IRS collection efforts to collect past due tax liabilities. You may want to consider hiring a tax professional at this time. There is no harm in you calling the IRS at this time, but you should not offer them any information. The purpose of your call is […]