Tax Matters - The Top Tax Defenders Blog

Many tax deductions and credits have been extended through 2012. This means that taxpayers may be able to claim some additional credits on their tax returns for 2011. However, there may also be some additional taxes due on specific transactions this year so it's wise for taxpayers to find out about the following 12 tempting tax tips for 2012 in advance.

The IRS only audits about one percent of all submitted returns each year. Why do some returns raise audit red flags while the vast majority skates by without a hitch? There are specific items that may trigger a deeper tax review on certain returns. To avoid being subjected to an audit, here are the dirty dozen IRS audit red flags you'll want to watch out for.

Do you owe back taxes to the IRS because a life emergency prevented you from filing your return on time? If so there's a possibility that you'll qualify for an IRS relief provision called penalty abatement. If you're able to get an abatement, you may be able to have your late filing penalties forgiven. However, qualifying for this provision is not easy and the IRS will not offer it to you simply because you made an error on your forms or forgot to send in your return on time. If you'd like to inquire about receiving penalty abatement don't deal with the IRS alone. Request the assistance of a qualified tax resolution specialist.

As tax time approaches taxpayers may be wondering if there are any options they can use to lower their income taxes. In order for any deduction to count for the tax year, it must have been made by December 31. Here are 6 tips to reduce your 2011 taxes. 

If the tax deadline for last year passed you by you might think it's too late to file your return. The truth is you can file a tax return at any time even if the deadline has come and gone. However, the sooner you submit your return the better off you'll be. Here are five reasons to file delinquent tax returns to the IRS.

Have you missed filing a couple of your past federal income tax returns? If so, you may be feeling nervous about what action the IRS may take against you. While there are potentially harsh financial consequences for not reporting your income to the IRS, you can easily clear up any unfiled tax returns by preparing your forms and submitting them as soon as possible. If you're wondering what you can do about unfiled tax returns you may find this information helpful.

If you owe a significant amount of back taxes, you may be at risk of having your wages garnished by the IRS. Generally, wage garnishment is one of the last steps the agency takes to collect an outstanding balance due. Most taxpayers who have their wages garnished have also been subjected to an IRS levy on their other assets such as their property, automobiles or bank accounts. Whatever steps you take to remove a wage garnishment, you'll want to begin immediately since the IRS will have access to every paycheck you earn as long as the garnishment is in effect. If you're wondering what you can do to stop wage garnishments, here are a few steps that will help you rectify your tax issues.

Nobody likes to get audited by the IRS. While the prospect of an audit is bad news, the good news is that you can avoid an audit by learning about 10 common audit triggers.

If you owe a substantial amount of back taxes that you will not be able to repay to the IRS, you may consider applying for an offer in compromise. This provision allows eligible taxpayers to drastically reduce or eliminate their outstanding tax liability. Learning how to qualify for an offer in compromise can help you to make a successful request and have your offer accepted by the IRS.

Taxpayers who owe back taxes to the IRS can take advantage of an installment plan to repay their balance due. Installment plans allow individuals to set their own payment amount and payment date so that they can afford to repay their debts. To sign up for an IRS payment plan, taxpayers must complete Form 9465 "Installment Agreement Request" and submit it to the IRS. But what if you default on an IRS installment agreement? What can happen to you because of defaultng? What will the IRS do next?