The Internal Revenue Service (IRS) has a toolbox full of tools it can use against taxpayers who fail to pay their tax obligations. One tool it recently threatened to wield against taxpayers with significant debt: the ability to revoke the taxpayer’s passport.
Why it is important to carefully characterize income
While writing can be a good source of money, it requires a lot more than simply putting creative ideas onto paper. In the case of K Slaughter v. Commissioner, it provides an important tax lesson.
Part II: 3 problems with tax debt collection by private agencies
A law passed in 2015 requires the Internal Revenue Service (IRS) outsource collection of certain tax debt to private debt collection (PDC) programs. This is not the first attempt at using third party businesses to collect on tax debt. In 2004, Congress granted the IRS to create a similar program. After three years, the IRS chose not to renew the program due to inefficiencies.
Part I: How much tax debt are private agencies collecting?
The estimated tax gap for fiscal 2017 – the difference between the amount owed and the amount collected – was $197 billion. For about two years the IRS has been contracting with private collection agencies in an attempt to narrow it.
Standing in the way of a simplified tax filing process
Back in 2004, a Stanford tax professor attempted to simplify the tax filing process with a California pilot. His proposal was called ReadyReturn and started with a pre-populated tax return with income generated from government records. The taxpayer could make corrections and add expenses and deductions.
If you haven’t done taxes for years, this is what can happen
When business is going really well, there may not be any time to sit down and focus on taxes. Having a bookkeeper do data entry is often not enough. After a couple years go by, it might even amount to a months-long project to get caught up.
5 FAQs on filing an extension
Sure, some people tend to wait until the last minute to file taxes. But needing more time can happen for several reasons, such as running into a serious life event or missing key documents.
What is the penalty for filing your tax return late?
It's April and that means the tax filing deadline of April 15, 2019 is quickly approaching. Tax professionals will be working extra hours, but there is no time to delay.
3 options for paying an unexpected tax bill
This tax season has brought surprises. Some taxpayers have found that they didn't withhold enough or didn't pay enough on their estimated payments. Others were affected by the state and local tax deduction cap.
Tax filing deadline looms — what if your business can’t make it?
The Internal Revenue Service (IRS) requires businesses to file tax returns by March 15, 2019. A failure to file on time can result in penalties. The easiest way to avoid the penalty is to file on time. If your business is unable to meet the March 15 deadline, consider requesting an extension.
