An Overview of IRS Transaction Codes

When you order transcripts of your tax return, you may notice a series of letters and numbers at the top. What do these letters and numbers mean and why did the IRS put them there? In most instances, the code is nothing to cause worry or alarm. You can understand your own tax transcript better by learning more about common IRS transaction codes.

Tax season can be a difficult time for individuals and businesses. Whether this is your first year filing complex taxes or you’ve let years of tax debts add up, help is available. There are a few different options when it comes to entrusting a professional with your tax case. Two of the most popular options are certified public accountants (CPAs) and tax attorneys. Knowing which is right for you comes down to your unique needs and goals, as well as the status of your case with the Internal Revenue Service (IRS). Tax debt is no small matter. Protect yourself with the correct tax professional for your situation.

The Internal Revenue Service (IRS) will assign revenue officers (ROs) to check on tax cases that deviate from the norm. It is a revenue officer’s job to assess a case and collect back taxes from businesses and individuals with cases that are out of the ordinary, such as those who owe more than $100,000. An RO is the person most likely to garnish your wages or levy your bank accounts. If the IRS assigns a revenue officer to your case, it means your tax situation is serious. Here’s what to know about when IRS revenue officer involvement might occur and how to fight back.

Thanks to public awareness campaigns, many people today are careful with their personal identity information. They are cautious about to whom and when they give out sensitive details like their addresses, dates of birth, and full legal names. 

When you borrow money from the federal government to go to school, you are expected to pay back that loan with interest after you graduate. You cannot ignore your obligation to repay your student loans. 

While the IRS expects you to pay what you owe the federal government each year, it understands you may not have the means to do so. Rather than default on your tax obligation, you could settle your account reasonably by making an Offer in Compromise. You can ensure that the IRS accepts your proposal by avoiding these six common OIC mistakes.

With the resurgence of the housing market, more people are finding it easier to buy new homes. Even so, you may hesitate to submit a mortgage application because you still owe the IRS a tax debt. Discover how unpaid taxes can impact your ability to buy a home and how lenders regard IRS debts when considering new mortgage applications.

Taxpayers by law must file returns for every year that they are alive and receive taxable income. This obligation does not at the moment that they pass away. 

The IRS does not necessarily have the last word when it comes to your returns or how much money you owe the government. When you go through the appeals process, you have the right and responsibility of presenting evidence and arguing in your own best interests. You can increase the chances of winning your tax appeal by learning how this process works and what is expected of you as a taxpayer.