Tax Time Travel Ban: IRS Can Take Your Passport

Posted on March 20, 2017 by - News


As if tax time were not already stressful enough, you might have new worries if your debt to the IRS is growing. Since late 2015, the IRS has had the power to use passports to collect tax debts. H.R.22 added new section 7345 to an already bloated tax code. The new provision is titled “Revocation or Denial of Passport in Case of Certain Tax Delinquencies.” The IRS has recently implemented it too for seriously delinquent tax debts. That generally means more than $50,000. The IRS can’t take your passport exactly, but it can tell the State Department to do so.

Section 7345 of the tax code isn’t limited to criminal tax cases, or even cases where the IRS thinks you are trying to flee. Recently, the IRS released new details on its website. If you have seriously delinquent tax debt, IRS can notify the State Department in a formal certification. The State Department generally will not issue or renew a passport after receiving a certification from the IRS. The IRS website will be updated from time to time about such notices. With the arrival of new IRS rules, it is worth considering how you might hold onto your passport even if you owe the IRS.

Can you pay your taxes with a credit card?

Posted on March 17, 2017 by - News


Tax season is upon us, and many people are discovering they owe money to the Internal Revenue Service (IRS).

This year, you have until April 18 to figure out how to pay taxes — April 15 falls on a Saturday, so taxes aren’t officially due until the following Tuesday. While there really isn’t a way to lower your tax bill at this point, although proper planning could lower it for next year, you may be wondering if you charge the bill to your credit card.

The short answer is yes, you can pay your taxes with a credit card. In fact, doing so may actually benefit you, if you’re using a rewards card. But there’s a lot to consider before doing you go this route.

Two Tax Truths and a Lie: Here’s What You Can and Can’t Get Away With

Posted on March 10, 2017 by - News


Most taxpayers will likely agree that the U.S. tax code is complicated and hard to understand. So, naturally, a few common tax myths have popped up over the years. And some of the most common myths revolve around tax deductions.

Some tax deductions that seem completely legitimate are actually fake, while others that seem unusual or even silly qualify for beneficial tax treatment. Here’s a look at tax myths and truths to help you claim the correct tax deductions.

IRS Criminal Investigation Releases Fiscal Year 2016 Annual Report

Posted on February 27, 2017 by - News


WASHINGTON — The Internal Revenue Service today announced the release of its IRS Criminal Investigation (CI) annual report, reflecting the significant accomplishments and criminal enforcement actions taken in fiscal year 2016.

IRS CI initiated 3,395 cases in FY 2016 that focused on tax-related identity theft, money laundering, public corruption, cybercrime and terrorist financing.

“The IRS continues to work to ensure that everyone is playing by the same rules and paying their fair share,” said IRS Commissioner John Koskinen. “The IRS is committed to fairly administering and enforcing the tax code, and our criminal investigators play a critical role in that effort.”

4 Serious Reasons Why You Shouldn’t Lie on Your Taxes

Posted on February 25, 2017 by - News


The average tax refund is more than $3,000. When you hear that number and do your taxes, only to find out that your refund is much less — or worse, that you owe money — it can be tempting to fudge the numbers and increase your refund.

But misrepresenting your income on your return counts as tax fraud, and has serious consequences. Below, find out what happens if you lie on your taxes and what IRS penalties you could face.

The Government Has $1 Billion in Unclaimed Tax Refunds

Posted on February 21, 2017 by - News


If you forgot to file a tax return in 2013, the government may owe you more money than you thought.

On Wednesday, the IRS announced that it currently has more than $1 billion in unclaimed tax refunds for about 1 million taxpayers who didn’t file a 2013 federal income tax return. But if you want to collect the money, you have to act fast: The IRS said taxpayers must file a 2013 tax return with the IRS no later than April 18. After that, the money becomes property of the U.S. Treasury.

Important Tax Deadlines & Dates

Posted on February 20, 2017 by - News


Knowin when and what you have to file can save you a lot of headaches at tax time. To avoid paying penalties, mark your calendar with the following important tax deadlines.

Avoid the Rush: Be Prepared to Validate Identity if Calling the IRS

Posted on February 14, 2017 by - News


WASHINGTON – The Internal Revenue Service said mid-February marks the agency’s busiest time of the year for telephone calls. The IRS is reminding taxpayers who have questions about their tax accounts to be prepared to validate their identity when speaking with an IRS assistor. This will help avoid the need for a repeat call.

The IRS recognizes the importance of protecting taxpayers’ identities. That’s why IRS call center assistors take great care to make certain that they only discuss personal information with the taxpayer or someone authorized to speak on the taxpayer’s behalf.

Don’t Fall for These 12 Common Tax Myths

Posted on February 5, 2017 by - News


To say the U.S. tax system is confusing is an understatement, so it’s no wonder there are many misconceptions about the rules.

The good news is that most people make less than $100,000 in a year and have no income other than their paychecks, so they can fill out the comparatively brief and very direct short form; almost everyone who uses the 1040EZ can fill it out themselves.

For everybody else, though, the baffling mysteries of the tax code prevail, and can ultimately cost money. To help unravel some of the perplexities of the system, here are 12 common tax myths debunked. It might save money and sanity when the deadline rolls around.