Posts by Traxion Tax
What Is Tax Resolution? Everything you Need to Know
What is tax resolution? Tax resolution is the goal for any taxpayer in hot water with the IRS – no matter what their trouble might entail. The IRS, as an organization, is tasked with enforcing US tax law and ensuring that taxpayers fulfill their obligations and pay their respective tax liabilities. However, misconceptions, misunderstandings, and…
Read MoreForm 433: How the IRS Assesses Your Ability to Pay Tax Debt
There are circumstances under which the IRS must collect information to determine whether a taxpayer can honor their commitment to a potential payment plan or installment agreement. The IRS usually determines this through a collection information statement (CIS), also known as Form 433. This is an in-depth look at your finances to determine eligibility for…
Read MoreS Corp to LLC Conversion Must-Knows
There are circumstances under which an S corp to LLC conversion makes sense. An S corporation is structured in such a way that income, losses, tax deductions, and tax credits are passed down to each shareholder for federal tax calculations. Shareholders of an S corporation get to report the income and losses on their own…
Read MoreWhat Is Form 2848 and Form 8821?
When deciding to work with a tax professional, you must grant the proper authority to not only represent you in tax matters but also authorize the retrieval of tax information prudent to a case or as part of a series of simple tax preparation requirements. This is where Forms 2848 and 8821 come in. One…
Read MoreIRS Tax Collection Actions: Levy, Lien, Seizure
If you owe taxes to the IRS, they may take collection actions against you and your tax account. Collection actions describe different forms of enforcement the IRS utilizes to pressure taxpayers into fulfilling their obligations and paying their debts. In general, the IRS will issue liens, levies, and asset seizures against taxpayers that owe back…
Read MoreHow to Figure Out Which Tax Payment Plan Is Best for You
If you owe back taxes, paying them off as soon as possible is the only surefire way to avoid collection actions from the IRS. But depending on how much you owe, simply writing a check might not seem like a realistic option. Tax payment plans are another way for you to avoid collection actions from…
Read MoreEstimated Tax Payments: The Benefits of Pre-Payments
For the majority of taxpaying Americans, taxes are primarily prepaid, meaning most taxes should be paid well before the due date on your annual tax return. In general, taxpayers are either employed or self-employed. The former pay taxes throughout the year through withheld taxes from wages, while the latter must make estimated quarterly tax payments,…
Read MoreIRS Streamlined Installment Agreement: Understanding Your Payment Options
A tax debt with the IRS can haunt you for years. Failing to settle it can lead to hefty penalties and a stark interest rate on your debt. And as a government agency, the IRS has many resources at its disposal to coerce payment; especially through federal tax liens and income, bank account, or asset…
Read MoreThe Trust Fund Recovery Penalty (TFRP): What You Need to Know
Businesses are responsible for paying their employees. It goes without saying that a person should be paid for the work they do, and any sort of wage theft or stolen labor is wrong. But businesses are also responsible for withholding a portion of every employee’s wage for tax purposes or risk incurring a trust fund…
Read MoreTax Representatives: EA vs CPA vs Tax Attorney
Taxes are complicated. There are hundreds of code notices and dozens of forms, and the more self-sufficient you are, the more complicated it gets. Do you own property? You may have property taxes. Do you invest? Then you will have to manage taxes on realized gains. Are you employed? Then most of your taxes are…
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