If you received a Letter From IRS Saying I Owe Money, the first thing to know is that you should not ignore it; the IRS is not necessarily right. A letter from the IRS that you owe money can be a notice of balance due, a CP14, an issue of a payment, a penalty notice,…
When you get a notification from the IRS that you have money to pay, it’s normally an extremely easy question to answer: “Why does the IRS think I owe money?” The reason might be that your tax return reported a balance due, a payment wasn’t applied correctly, the IRS adjusted your return, income was reported…
IRS Letter 1058 (or LT11) will give you 30 days to respond before the IRS can initiate collection activity such as wage garnishment or bank levy. Deadline is on the letter but 30 days from the date printed on the letter. Important Key Details & Deadlines Countdown: Count the last 30 days from the date…
IRS CP2000 Response Deadline: There are 30 days to reply from the date shown on the IRS CP2000 Notice. An extension is given to 60 days for those who live outside the United States. This deadline is very important because the IRS will automatically assess the proposed tax, penalties and interest if it is not…
The IRS indicates that your tax return is being processed when the “Still Processing” status is listed in your IRS refund status. This can be due to lack of data, missing data or calculating certain credits. Generally, there is no need to take any action and the refund will be done automatically. Important Tips to…
YES. It’s true that there are some IRS Notices and Letters available online. The IRS makes some select correspondence available in your secure portal, like some IP PIN notifications and the Letter 6475. How to View IRS Notices Online Visit the Portal: Go to the IRS Online Account page. Sign In or Create an Account:…
Failure to respond to IRS notices will lead to penalties for failure to file and failure to pay, compound interest, tax liens or tax levies. Failure to follow these notices results in you losing your appeal rights with the IRS and any case becomes mandatory debt collection. What You Should Do Right Now Respond Immediately…
standard tax deductionsAs stated by Advocate Shahid (Tax Consulting and Research Specialist). Tax Planning & Deductions in USA are about strategically managing your income, investments, and expenses to reduce your taxable income and overall tax liabilities. This is done by using standard, itemized and above the line deductions. Understand the Basic Principles 1. Standard Deductions…
ThFrom the standpoint of Advocate Shahid (Tax Strategy and Advisory Specialist) describes the Tax Basics & Filing in USA. When filing U.S. taxes, you will have to inform the government about your annual income using the 1040 form. April 15th is the Federal tax deadline. Majority of income, such as wages, investments, and tips, are…
Advocate Shahid (Tax Strategy and Advisory Specialist) views: Small Business Taxes in the USA have different types of business entities and thus will have different tax responsibilities. These typically consist of federal income tax, self-employment tax (15.3 percent of net earnings, which includes the taxes for Social Security and Medicare) and state tax and payroll…