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What Debts Can Trigger a Tax Refund Offset?

What Debts Can Trigger a Tax Refund Offset - Traxion Tax

The IRS issued over 247 million tax refunds in 2021, not counting about 313 million additional refunds issued as part of the 2021 stimulus package for COVID relief. Most taxpayers receive a tax refund because they slightly overestimate their tax liability when making estimated quarterly payments or income withholding; an attractive alternative to the IRS…

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Understanding Streamlined Installment Agreements

Understanding Streamlined Installment Agreements - Traxion Tax

If you owe the IRS back taxes, it might help to know that you’re not alone – and that you’re far from the first or last person to get in trouble with the tax man. In 2017 alone, an estimated 858,000 taxpayers fell behind on their taxes. In 2020, Americans owed as much as $114…

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Tax Credits vs. Deductions: What’s the Difference?

Tax Credits vs. Deductions: What’s the Difference? - Traxion Tax

Tax credits and deductions are two significant ways individuals can minimize their tax liability before Tax Day. However, while the two are often compared and conflated, they are fundamentally different – and understanding that difference can help you make better decisions as a taxpayer and avoid missing out on crucial savings. Ultimately, tax credits and deductions…

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What You Need to Know About Filing Form 8821

What You Need to Know About Filing Form 8821 - Traxion Tax

Suppose you’ve heard of a power of attorney before or had to execute one. In that case, you will know that these documents are usually reserved to grant another person the right to represent you, in a general or limited capacity, for a given period. The IRS has its form similar to a power of attorney,…

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Watch Out for These 10 IRS Audit Triggers

Watch Out for These 10 IRS Audit Triggers - Traxion Tax

The IRS does not take tax evasion lightly. But it also knows that most unpaid taxes result from misunderstanding tax rules or forgetting to read the fine print. IRS audits, or IRS investigations, allow the agency to devote some of its resources to identify potential cases of missed taxes or tax evasion and determine whether the…

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What Is an IRS Notice of Deficiency?

What Is an IRS Notice of Deficiency? - Traxion Tax

The IRS issues hundreds of different notes and letters throughout the year to millions of taxpayers. Not all notices and letters are bad news. But some – like a notice of deficiency – are the mail no one wants to wake up to. However, receiving an IRS notice of deficiency is not the world’s end.…

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IRS Penalty Abatement Do’s and Don’ts 

IRS Penalty Abatement Do’s and Don’ts  - Traxion Tax

The IRS issues penalties for several different reasons, including owing taxes. Yes, the IRS will penalize you for a failure to pay your taxes via an IRS penalty abatement and can even continue to punish you if you continue to stall. But the IRS can also penalize you for failing to file your tax returns.…

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Is an IRS Audit Letter Really Something to Worry About?

Is an IRS Audit Letter Really Something to Worry About? - Traxion Tax

Receiving an IRS audit letter is rare – less than a percent of taxpayers get audited at just 0.22 percent in 2019. However, just because the chance of an IRS audit is closer to a lightning strike than a fender bender does not mean it is anywhere near as big of a deal. Most audits…

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What Are the Implications of a Federal Tax Lien Release?

What Are the Implications of a Federal Tax Lien Release? - Traxion Tax

A tax lien release is applied on taxpayer accounts with significant outstanding tax liabilities who failed to contact the IRS and establish a payment plan promptly. Lien releases are challenging to get and require a substantial amount t of effort to receive. You must pay off your debt to get the government off your back.…

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Guide to Choosing and Hiring Tax Relief Specialists

Guide to Choosing and Hiring Tax Relief Specialists - Traxion Tax

Tax relief specialists are experts in IRS standards and procedures offering services to help you with your tax issues. Tax relief is an umbrella term for any professional services rendered to address your outstanding tax liability, deal with the IRS’ inquisition into your financial details, or help you navigate local, state, and federal tax law…

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