What Is an IRS Notice of Deficiency? An IRS Notice of Deficiency, commonly referred to as a statutory notice or deficiency notice, is a formal communication from the Internal Revenue Service (IRS) that indicates a proposed change to a taxpayer’s tax return. This notice typically signifies a proposed increase in the amount owed, based…
What Is An IRS Refund? An IRS refund is the amount of money returned to a taxpayer by the Internal Revenue Service (IRS) after they have overpaid their taxes for a given tax year. This situation typically arises when the total tax liability is less than the total amount withheld or paid through estimated…
What is an IRS Audit? An IRS audit is a formal examination of an individual or business’s financial information designed to ensure compliance with tax laws and regulations. The primary goal of this process is to verify the accuracy of tax returns, identify potential tax fraud or tax evasion, and ensure that taxpayers meet…
Why Does the IRS Conduct Audits? The Internal Revenue Service (IRS) conducts audits to ensure compliance with tax laws, maintain the integrity of the tax system, and verify the accuracy of tax returns filed by taxpayers. Audits serve as a method for the IRS to identify discrepancies or potential issues in a taxpayer’s financial…
This article outlines the consequences of unpaid taxes and presents options for managing tax debt, including understanding IRS collections and tax relief opportunities. Additionally, it offers strategies to help prevent future tax debt issues, such as effective tax planning and utilizing IRS assistance. What Happens If You Can’t Pay Your Taxes? Tax issues can arise…
Inheriting property can be both a blessing and a potential source of confusion, particularly when it comes to navigating the tax implications. Understanding inheritance tax, estate tax, and capital gains tax is essential for making informed decisions. This article outlines the key steps to take upon inheriting property, explores options for managing it, and offers…
Understanding IRS Tax Notices and Compliance IRS tax notices are letters from the Internal Revenue Service (IRS) concerning tax compliance, tax liabilities, and taxpayer rights. These communications are crucial for both individuals and businesses to understand their tax obligations and responsibilities. Tax notices may pertain to tax returns, tax obligations, and any discrepancies that…
The Internal Revenue Service (IRS) is a federal agency within the United States Department of the Treasury, responsible for revenue collection, tax administration, and the enforcement of tax laws and tax regulations in the United States. This article outlines the purpose and major responsibilities of the IRS, as well as the various types of taxes…
Understanding IRS taxes can be daunting, particularly when confronted with the consequences of unpaid obligations. This article emphasizes the importance of timely tax payments, outlining potential penalties such as late fees, interest charges, and even tax levies, as well as more severe repercussions like tax liens. It also discusses various payment options available for individuals…
Receiving an IRS CP2000 notice, or tax notice, can be a daunting experience, but understanding it is the first step toward resolution and effective tax planning. This notice typically indicates a discrepancy between the income reported on your tax return and the information the IRS has on file. In this article, we will break down…