[Editor's Note: This article was originally published in June 2012 but has been updated for accuracy and comprehensiveness.]
Currently Not Collectible (CNC) status means the IRS has determined you cannot afford to pay your tax debt due to financial hardship. As a result, the IRS temporarily stops collection efforts such as wage garnishments and bank levies, though your balance will continue to accrue interest and penalties.
[Editor's Note: This article was originally published in November 2012 and has been updated for accuracy and comprehensiveness.]
Many taxpayers who owe large amounts of back taxes to the IRS set up IRS installment plans in an attempt to clear up their accounts. These installment plans can be a convenient way to pay off back taxes without putting an unnecessary strain on your budget. And while an IRS payment plan may seem like a good idea in theory, there are some situations where signing up for this type of plan may not be the best solution. Here are some of the advantages and disadvantages of IRS installment plans.
{Editor’s Note: This post was originally published in August 2013 and has been updated for accuracy and comprehensiveness.}
Some taxpayers might feel that they don't need to keep their income tax documents unless they have particularly complex tax situations. The reality is that all taxpayers should keep their essential tax documents on file. Depending on your circumstances, you may need to keep your records for several years, in case of an audit or to back up a claim.
To get innocent spouse relief, you must file IRS Form 8857 and show that a joint tax return understated taxes due to your spouse’s errors, that you did not know or have reason to know about them, and that it would be unfair to hold you responsible. Requests generally must be filed within two years of the IRS’s first collection attempt.
If you’re facing a visit or call from an IRS Revenue Officer, you might feel a mix of confusion and stress. After all, most of us never expect to deal directly with the IRS, let alone with one of their Revenue Officers. But it can happen to anyone, especially if you have overdue tax debts, haven’t filed tax returns, or are dealing with payroll tax issues. So, let’s walk through some tips to help you manage this situation calmly and effectively.
Editor’s Note: This post was originally published in December 2011 and has been updated for accuracy and comprehensiveness.
If you're behind on your taxes, you've likely heard the term "tax levy" thrown around—but what does it actually mean, and how could it impact you?
Editor’s Note: This post was originally published in July 2012 and has been updated for accuracy and comprehensiveness.
Charitable giving is one of the most common tax deductions for individuals. But some business owners may not know that they can use these same deductions to lower their taxable corporate income. The IRS offers significant tax savings for employers who take advantage of charitable deductions during the tax year, including these five tax write-offs.
Editor’s Note: This post was originally published in March 2013 and has been updated for accuracy and comprehensiveness.
If you find yourself owing a lot of money to the IRS, you're not alone. But what can you do if you won't have the money you need to pay off your tax bill? One solution is to set up an IRS installment plan. These plans make it possible to pay off your tax balance over time, rather than all at once.
