News

Owe the IRS Back Taxes? Prepare to Owe Them Even More. Does the IRS Owe You? Prepare to See a Larger Refund: IRS Interest Rates on Overpayments and Underpayments are Increasing!

At Bryson Law Firm, LLC, we frequently represent Taxpayers through IRS Audits. One common issue we find when a Taxpayer comes in with an IRS Audit Letter and a copy of their 1040 Tax Return prepared by a paid preparer is that the tax return was incorrectly prepared, generated an inflated tax refund, and was designated as “self-prepared.”

Under 26 USC 71: Alimony and Separate Maintenance Payments, “gross income includes amounts received as alimony or separate maintenance payments.” With the new Tax Cuts and Jobs Act, this alimony deduction is eliminated on all divorces entered into after 2018.

The Earned Income Tax Credit (EITC/EIC) is a tax credit aimed to benefit low to moderate income families, especially those with children. 

If your business owes back payroll taxes IT’S TIME TO DO SOMETHING ABOUT IT NOW!  ...BEFORE you get a personal visit from a local IRS officer!

Written By: Kathryn Watson

We frequently get calls from potential clients who are looking to see if the “statute of limitations” on an old tax debt has run yet or not. Here’s a quick overview as to how the IRS’ CSEDs (Collection Statute Expiration Dates) work.

Businesses often close leaving behind various debts, including taxes. It’s a common belief that once the business closes those debts die with the business, so why are you getting an IRS notice years later?

The short answer – it depends. In order for the IRS to have the authorization to seize your physical property, such as money or land, the IRS must first issue a series of notices requesting that you remit payment for your outstanding balance. Eventually, the IRS will issue a Final Notice of Intent to Levy (FNIL; usually reflected as a CP90 or LT11 in the upper right-hand corner of the notice) which is your last chance submit payment. If you cannot afford to make payment in full, the FNIL provides you with a 30-day time frame to file a Collection Due Process Appeal. If no Appeal is filed and no resolution request has been submitted, then the IRS can move forward with a levy upon your banking account in order to collect the debt owed.

Unlike other creditors, the IRS has unprecedented power to collect unpaid debts. In fact, the IRS doesn’t have to seek court approval to file a lien or seize your property to satisfy your debts. Whereas an IRS tax lien is a claim on the taxpayer’s property, an IRS levy is much more intrusive and involves the actual seizure of a taxpayer’s property.

You’ve filed your 2016 return and after months of checking your account for your refund you’re still waiting, or maybe you got a letter from the IRS notifying you that they’re keeping your refund. You’re angry, annoyed, and frustrated and want to know how they can do that! The IRS can keep your refund for a variety of reasons such as a back tax balance, unfiled returns, delinquent child support obligations and even defaulted student loans. Your refund should arrive within 21 days of when you e-filed your return (6-8 weeks for mailed paper returns), and you can keep up with it my the status on the IRS website.