Taxes must be paid as you earn or receive income during the year, either through withholding or estimated tax payments. If the amount of income tax withheld from your salary or pension is not enough, or if you receive income such as interest, dividends, alimony, self-employment income, capital gains, prizes and awards, you may have […]
The IRS has the power to garnish or legally seize any income you make to satisfy federal tax debt or taxes owed. Garnishments can apply to your hourly wages, salary, commissions, and bonuses. The IRS will contact your employer directly and require them to directly send the IRS a portion of your income. Your employer […]
The IRS officially launched the Fresh Start initiative (FSI) in 2011 in order to help taxpayers get a “fresh start” with their tax debt. The goal of the program was to help taxpayers and small businesses with paying back taxes and avoiding tax liens. It was expanded in 2012, with new changes to existing resolutions […]
Before the IRS can levy a taxpayer on an outstanding balance, it must issue a series of notices or letters regarding the outstanding balance due. A taxpayer will receive their first notice regarding a balance due after the tax has been assessed, i.e, after the return is filed or an audit is concluded. If the […]
Cuts in the IRS budget from $14 billion in 2010 to approximately $12 billion in 2017 have resulted in staff reductions by about one-third during that time frame. IRS staffing dropped to less than 10,000 agents for the first time since 1953. As a result of the cuts, audit rates have dropped for all income […]
