Posts by Traxion Tax
What Are Delinquent Taxes and How Can They Affect You?
Taxes are not due every year – tax returns are, but when and how you pay your taxes depends on your employment and filing status. Some people pay taxes with every paycheck through their employer’s tax withholding. Some people pay taxes quarterly or monthly through estimated tax payments. Missing these payments can result in penalties and accrued interest. However,…
Read MoreA Realist’s Guide to IRS Debt Forgiveness
Tax debt is not easily forgiven, and it certainly isn’t forgotten. The IRS is a harsher creditor than most and likely won’t overlook a tax debt even in dire financial circumstances. But that doesn’t mean all hopes of dealing with your tax debt are dashed. Knowing your options is crucial. There are multiple ways to…
Read More7 IRS Audit Penalties to Know (and How to Avoid Them)
An audit from the IRS is rare – but when the IRS does decide to incur an investigation, they tend to be thorough. Most IRS investigations are routine and result in minor changes if anything at all. These will usually fall under so-called correspondence audits, wherein the IRS requests certain documents to double-check the information on your return…
Read MoreUnderstanding Your CP14 Notice and How to Respond
So, you received a notice from the IRS. Don’t panic. The IRS issues hundreds of letters and notices to millions of taxpayers annually. It doesn’t always have to be bad news – and when it is, such as with a CP14 Notice, there are still several options to consider depending on your specific situation and the size of…
Read MoreWhat Is a Subordination Agreement?
When facing mounting debt and multiple due payments, the last thing you want is for one debt to supersede and take priority over others – but depending on how your debt is structured, this might end up happening. A subordination agreement allows you to exempt a specific debtor from this structure, so you can pay…
Read MoreImportance of Proper Bookkeeping for a Growing Business
There is a lot to keeping a business running, no matter how small. You need to calculate your fixed costs, keep track of your variable expenses, and keep tabs on your revenue. You also need to keep an eye on your monthly profit and pay off ongoing debts to determine whether your business can survive…
Read MoreWhat Debts Can Trigger a Tax Refund Offset?
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…
Read MoreUnderstanding Streamlined Installment Agreements
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…
Read MoreTax Credits vs. Deductions: What’s the Difference?
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…
Read MoreWhat You Need to Know About Filing Form 8821
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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