TaxAudit Blog

Yes, car insurance can be tax deductible for self-employed taxpayers, Armed Forces reservists, qualified performing artists, and some government officials. Read More ›

PMI, funding fees, and guarantee fees can be deductible if you qualify. One qualification is your mortgage loan must have been taken out between 2007 and 2021. Read More ›

A tax lien occurs when the IRS makes a legal claim to your property to settle a tax debt. There are options if you can't pay the total amount or disagree. Read More ›

The IRS treats payroll tax liability lapses as a very serious offense and makes it a priority within their enforcement wing to collect these amounts. Read More ›

My child’s Social Security number was used on another tax return. What do I do? It is prudent to file an IRS identity theft affidavit as soon as possible. Read More ›

Let's talk about small businesses and one of the most common tax issues they face: making sure their payroll tax is taken care of timely and properly. Read More ›

If you have qualified student loan interest, you may be able to take a tax deduction for a portion of what you paid on your federal income tax return. Read More ›

In this article we will discuss some key issues related to whether life insurance is tax deductible and a few potential tax benefits of life insurance. Read More ›

A levy is when the IRS is permitted to garnish someone’s wages, bank accounts, property (such as a house or car), investments, etc. to satisfy a tax debt. Read More ›

If you find yourself in need of making estimated payments, I hope this guide is just what you need to tackle paying them in the Commonwealth of Massachusetts. Read More ›

Currently Not Collectible (CNC) is when the IRS determines that you are financially unable to pay the tax debt that you owe, so they put your debt on hold. Read More ›

A nonrefundable tax credit lowers your tax liability but not below zero. Therefore, a nonrefundable tax credit cannot be used to create a tax refund. Read More ›

What is beneficial ownership information reporting? If you aren’t certain whether it applies to you, this blog may help clarify the reporting requirement. Read More ›

Whether you can settle your tax debt through an offer in compromise will depend on what the IRS deems is your collection potential, or ability to pay. Read More ›

Penalty abatement is the process of requesting the IRS remove penalties (this is called abatement). You need to demonstrate that there is a "reasonable" cause. Read More ›

Child support is not deductible for tax purposes. Child support payments are also not required to be reported as income by any person receiving them. Read More ›

How many of you double-check the beneficiaries of your retirement accounts? Failing to do so can have significant unintended consequences for your heirs. Read More ›

Credits can either be refundable or non-refundable. Refundable tax credits can result in a refund if the credit amount is more than the taxes you owe. Read More ›

Due to seriously delinquent taxes,you could receive an IRS letter stating that your passport is being revoked or your passport application is being denied. Read More ›

What is an Audit Reconsideration? If a taxpayer goes through the audit process but disagrees with the results, they can request an Audit Reconsideration. Read More ›

If you received a letter from an IRS Revenue Officer, you might be wondering what that means and what steps you should take next. Read More ›

There is a very good chance you can deduct mortgage interest on a second home – but it depends on the details of your situation. Let's explore more. Read More ›

When certain medical expenses aren’t covered by a health insurance plan or have a high deductible, the IRS allows a tax deduction on the individual tax return. Read More ›

Yes, you may be able to deduct mileage and gas on your taxes, but only if you meet certain conditions. Please allow me to explain. Read More ›

What if your spouse filed a return and failed to report income or overstated deductions – and you had no idea? This is where Innocent Spouse Relief comes in. Read More ›

The amount of tax debt relief a person can receive depends on their financial situation. Many options are available to those who have outstanding tax debt. Read More ›

The losses you incur from your gambling activities may be tax deductible, but the total amount of your deduction cannot exceed the amount of gambling income. Read More ›

Estimated tax payments must be made when the estimated taxes owed by a Montana taxpayer – after any withholding and nonrefundable credits – is more than $500. Read More ›

Taxpayers cannot always pay the full amount they owe to the IRS. Taxpayers can use an installment agreement to pay off their debt over time. Read More ›

It generally takes six months to two years to resolve a tax relief case. However, it can take longer than two years depending on the complexity of the issue. Read More ›

If you are facing wage garnishment or are worried that the IRS may enact this levy on your wages, continue reading to learn more about it and how to stop it. Read More ›

Whether a taxpayer files a tax return in any given state is generally based on the source of the income, but their tax home is usually where they are domiciled. Read More ›

Utah does not require quarterly estimated tax payments by taxpayers who file a Utah tax return. However, taxpayers can make a prepayment at any time. Read More ›

The short answer is YES. Minors who are employed and earn income are generally subject to federal withholding taxes, just like adult employees. Read More ›

Our service costs generally range between $1,000 and $5,000, depending on multiple factors including the complexity and the estimated time it takes to resolve. Read More ›

Oregon taxpayers who expect to owe more than $1,000 after taxes already withheld and allowable credits must make estimated tax payments. Read More ›

Because the distributions from a Roth IRA are usually not taxable, contributions you make to them are also not deductible. Read More ›

Taxpayers who file a Kentucky tax return and expect to owe more than $500 (after any taxes withheld and allowable credits) must make estimated tax payments. Read More ›

​To answer this question, an individual must first determine whether they are considered a resident alien or a nonresident alien for U.S. income tax purposes. Read More ›

Yes, tax relief is available for state taxes. Most states have put programs into place to assist taxpayers who are unable to pay their tax balance due in full. Read More ›

Louisiana taxpayers who expect to owe $1,000 for single ($2,000 for joint) or more, must make a declaration of estimated income and pay estimated tax payments. Read More ›

Wisconsin taxpayers who expect to owe more than $500 after withheld taxes and allowable credits should make estimated tax payments or increase withholding. Read More ›

We will be talking about whether the “pennies on the dollar” claims for tax debt relief that you hear on radio or late-night TV ads are real. Read More ›

Taxpayers who file a Virginia tax return and expect to owe $150 or more over any taxes already withheld might need to file estimated tax payments. Read More ›

An Audit Reconsideration requests the IRS reopen a previously closed audit case. It can be requested after the audit occurrs and the tax remains unpaid. Read More ›

Regardless of whether they are a Michigan resident, taxpayers who expect to owe more than $500 when they file their MI-1040, must make estimated tax payments. Read More ›

Yes, Tax Debt Relief is available for businesses. Read more about tax debt issues businesses face such as Employment Tax Issues, Trust Fund Taxes, etc. Read More ›

Let's talk about how the Tax Debt Relief process at TaxAudit works so you can decide if our company is the best for you. Read More ›

The first thing you want to do when choosing a tax debt relief company is confirm you are speaking to a licensed tax professional - EA, CPA, or tax attorney. Read More ›

Do you have tax debt? Would repaying this debt cause you financial hardship? If so, you may be eligible for Currently Not Collectible status through the IRS. Read More ›

You are an influencer and have a large enough following that you are making money from your online posting. What kinds of expenses can you deduct on your taxes? Read More ›

In Illinois you may not be subject to the penalty if you pay at least 90% of this year's tax or 100% of last year's tax in four equal timely installments. Read More ›

If you estimate that you will owe more than $400 in New Jersey income tax at the end of the year, you are required to make estimated payments. Read More ›

IRS Letter 525 is sent to let you know that your tax return was reviewed. A wise taxpayer should proceed with caution, yet swiftly, from this point forward. Read More ›

Both a tax deduction and a tax credit reduce the amount you may owe on your return, and possibly increase your refund. But how they get there is different. Read More ›

An IRS levy is the actual seizure of property you own. An IRS lien is a public document that notifies any creditors that the IRS has a right to your property. Read More ›

A CP08 is to let taxpayers know that they may qualify for the Additional Child Tax Credit and, in turn, could be eligible to receive a refund. Read More ›

You received a letter from the State of Colorado stating you do not qualify for a state sales tax refund because your return was filed after the deadline. Read More ›

The IRS has issued a CP11A notice because they believe there was a miscalculation on your tax return for the year in question and made changes to reflect this. Read More ›

What happens if your spouse overstated the deductions claimed on the return or substantially understated the income?  Are you still liable for the tax due? Read More ›

Alimony payments may indeed be tax deductible if the divorce or separation instrument under which they are made was executed prior to 2019. Read More ›

Most states that have income taxes offer a credit for taxes paid to another state on the same income, although how that credit is calculated is not identical. Read More ›

IRS notice CP05A is sent by the IRS to inform taxpayers that they need more information about the submitted income tax return before a tax refund can be issued. Read More ›

You received an IRS CP87A because someone else filed a tax return and claimed the same dependent or qualifying child that you claimed on your tax return. Read More ›

Per the collection statute expiration date, the IRS generally has 10 years from the date they assess your tax balance to collect taxes owed. Read More ›

The PA Dept of Revenue expects you to make PA Estimated Tax payments if you make more than $9,500 of taxable income that has not had taxes withheld from it. Read More ›

When you give assets to family members, they are subject to the gift tax exclusion amount, currently $17,000 per year. If your gift exceeds this amount... Read More ›

If you can show that there was “reasonable” cause for the understatement or for failure to file or pay on time, you may be able to get those penalties abated. Read More ›

In most circumstances, you must file an amended return within 3 years from the date you filed your original return or 2 years from the date you paid the tax. Read More ›

One of the most valuable tools to protect yourself against IRS collection actions – particularly against liens and levies – is a collection due process hearing. Read More ›

Receiving notice of an IRS levy can cause a lot of anxiety. How you can prevent an IRS levy from occurring or release a levy once it has occurred? Read More ›

When shares of a limited partnership held in a SEP-IRA are completely sold are the gains subject to recapture as ordinary income as shown on the K-1 taxable? Read More ›

Two siblings were listed on the title of a home with their mother. She died and the siblings sold the home and distributed the funds to the other siblings. Read More ›

Groceries you buy for your household are a personal expense and are not deductible. But there are numerous cases in which food can be deductible. Read More ›

IRS CP53 and 53A letters are issued because the IRS was unable to issue your refund by direct deposit. There are several reasons why this may occur. Read More ›

Creating your IRS online account starts with a simple trip to the IRS website. You will need an email address, a smartphone with a working camera, and an ID. Read More ›

An amended IRS tax return refund can take in the region of 20 weeks to receive. The Where’s My Amended Return? Tool allows taxpayers to check the status. Read More ›

Fortunately, there are a myriad of tools available for taxpayers who want to tackle their tax debt issues and dispute the collection actions taken by the IRS. Read More ›

The general deadline for an amended tax return is 3 years from when the original return was filed or 2 years from when the tax was paid, whichever is later. Read More ›

An IRS Installment Agreement can be very easy or complicated, depending on your circumstances. Read More ›

There is no tax benefit for applying to enter a college. However, many benefits are available when your application has been accepted and after you enroll. Read More ›

IRS notice CP523 informs you the IRS intends to terminate your installment agreement or payment plan because they haven't received one or more monthly payments. Read More ›

An IRS Offer Compromise is an attempt to settle your tax liability with the IRS for less than what is owed. There are three types of Offers in Compromise. Read More ›

If you happen to miss one of your quarterly estimated tax payments, all is not lost. As soon as you remember, go ahead and make the quarterly payment late. Read More ›

If you’ve received an IRS deficiency or IRS determination and disagree with the changes, how can you dispute them? Read on because we’re here to help! Read More ›

The IRS assessment period is at least six years if enough income was omitted. If the the omission of income was deliberate, the IRS has all the time they want. Read More ›

Kenneling a dog for work travel is considered a personal expense. However, I wonder if the answer is different if I make income from my dog? Read More ›

How do I write off solar panels for rental properties when I claim as a real state professional to run a rental business? Read More ›

Whether you can deduct credit card interest on your taxes depends on the use of a credit card. Are you using it for personal, business, or perhaps both? Read More ›

IRS Notice CP21A is a letter that the IRS issues when changes have been made to a tax return by the taxpayer, usually after they have filed an amended return. Read More ›

The deductibility of origination fees on your taxes from buying a new home is dependent upon a few factors - the main factor being if itemize your deductions. Read More ›

Rentals are considered to be special passive activities and the amount of loss you can use in any year is limited to $25,000, if your AGI is under $100,000. Read More ›

A CP518 notice is issued by the IRS to taxpayers because they have no record of a tax return being filed for the year listed on the notice. Read More ›

While homeschooling, can you deduct the cost of classes for skills that the homeschooling parent doesn’t possess, such as ballet classes or piano lessons? Read More ›

A number of different software applications that use a smartphone have become available for the purpose of recording business and personal mileage.  Read More ›

If you received an IRS notice CP521, it is because you entered into an installment agreement with the IRS for taxes owed and your monthly payment is now due. Read More ›

You can use the US tax code to reduce the impact of foreign taxes you have paid or incurred depending on the country or countries involved. Read More ›

An IRS Notice CP45 is a letter the IRS sends to notify you that your request to apply your overpayment to your next year’s estimated taxes cannot be granted. Read More ›

Much like the IRS, California’s taxing agency, the California Franchise Tax Board (or CA-FTB), expects to collect your owed taxes throughout the tax year. Read More ›

Similar to the IRS, New York’s taxing agency, the New York State Department of Tax and Finance, expects to collect your owed taxes throughout the tax year. Read More ›

You can deduct an unpaid invoice as a business expense if all the following are true: (1) You have already included the amount of the invoice as income… Read More ›

As the law currently stands for individual taxpayers, starting in the 2026 tax year, you will be able to deduct estate planning fees related to tax planning. Read More ›

A child who qualifies as a dependent on their parent’s tax return will need to file a tax return in certain situations. Let's explore when they need to file. Read More ›

IRS Letter 105C notifies you that the IRS did not allow the credit or refund you claimed. Usually, Letter 105C will explain why your claim was disallowed. Read More ›

Now that the pandemic is officially over, can I still deduct the cost of masks and hand sanitizer for my classroom or place of business? Let's find out. Read More ›

IRS Notice CP10 is issued when the IRS believes there was a miscalculation on your tax return. This results in changes that affect your estimated tax payments. Read More ›

An IRS CP16 typically informs you that the IRS believes a miscalculation or other error was made on your return, and they have adjusted your refund. Read More ›

If you want to deduct your first-class airfares, be aware that the IRS may question you about these expenses and will make its decision based on each trip. Read More ›

A CP75D is issued when the IRS needs you to verify your income and/or withholding. This could affect whether you receive a refund or owe the IRS additional tax. Read More ›

Yes, you can. Provided that the baby in question is your dependent, there is a whole host of tax benefits you can take advantage of to offset your expenses. Read More ›

IRS letter CP91 states that the IRS may seize up to 15% of your Social Security because you have an unpaid tax balance due. What can you do if you get a CP91? Read More ›

Your GoFundMe donations can be deductible provided that they are being sent to the correct type of organization - a registered 501(c)(3) organization. Read More ›

The deduction of any expenses, including snacks for riders from rideshare drivers, depends on your personal facts and circumstances. Let's explore more. Read More ›

My mom passed away about a year ago, and I inherited two IRAs. Can I roll over one of the IRAs into the other inherited IRA if it is done by direct transfer? Read More ›

IRS Notice CP25 informs you that there was a difference between the estimated tax payments you reported and the amount that the IRS posted to your account. Read More ›

Tax law does allow business owners to use the gifts they made to clients to increase their deductions from taxable income, but there is a dollar amount limit. Read More ›

The deductibility of an IRA contribution is affected by your filing status and your Modified Adjusted Gross Income and is subject to certain limits. Read More ›

As a rideshare driver you can likely deduct your carwash expenses on your taxes. But, as always, certain conditions have to be met. Allow me to explain. Read More ›

With all the required tuition, books, and fees for college students, not to mention the cost of room and board - what education expenses are tax deductible? Read More ›

Under some circumstances, you can indeed deduct off-campus housing on your taxes while attending college – but the amount of the benefit is limited. Read More ›

Are there situations where travel expenses are tax deductible? Yes. In this blog, we will discuss five situations where travel expenses are deductible. Read More ›

The IRS regards your personal driver’s license as a nondeductible expense. A commercial driver’s license that is required for your business may be deductible. Read More ›

The good news is that you can roll your 401(k) twice in one year and into an IRA without penalty, provided you take a few simple precautions. Read More ›

Can you claim a depreciation deduction for Section 1250 residential property in the year the property is sold? When it comes to taxes, details matter. Read More ›

An IRS Notice CP32A is informing you that your refund check has not been claimed. To resolve this notice, you must call to request a new refund check. Read More ›

IRS Notice CP21C is sent out when a taxpayer requests to make a change to their tax return. The notice informs the taxpayer that the change has been completed. Read More ›

Details regarding the disposition of grouping of activities in order to more easily satisfy the material participation requirements for the RE Pro status. Read More ›

IRS CP06A notice asks you to verify the Premium Tax Credit you claimed on your tax return with documentation. How should you properly respond to this notice? Read More ›

Notice CP14H is issued by the IRS to inform you of your unpaid shared responsibility payment that is due and to request that payment. How should you respond? Read More ›

IRS Notice CP21E informs taxpayers that an audit was recently done on their tax return and the IRS determined that those changes resulted in additional tax due. Read More ›

The good news is there are many different expenses that you may be able to deduct in relation to your dog-walking job – but your shoes may not be among them. Read More ›

The taxpayer owed over $30,000 in back tax debt that she couldn’t afford to pay. Not knowing what to do, the taxpayer contacted TaxAudit for help. Read More ›

The short answer is yes, you can deduct education expenses for your dependents, but some limitations and qualifications must be met. Let's explore more. Read More ›

You just received an IRS Notice CP90 - Intent to Levy and Unpaid Taxes - in the mail. Don't panic. Let's walk through the letter and determine your next steps. Read More ›

They received an IRS tax notice demanding payment for over $600,000 in tax, interest, and penalties. Not knowing what to do, they contacted TaxAudit for help. Read More ›

IRS CP22E notice is the result of a recently completed audit. Because of the changes made to your tax return during the examination, you now have a balance due. Read More ›

Tax law does not allow us to claim last year’s expenses on this year’s return, but does allow us to amend our returns to include missing deductions. Read More ›

The good news is that, at tax time, taxpayers can often deduct part or all of the premiums they pay for long-term insurance for themselves or a dependent. Read More ›

If you have a pending tax bill, putting the IRS and a bond payment together might be what works for you. How can a bond payment help you with the IRS?  Read More ›

My minor daughter was a beneficiary for her uncle's savings account. Does she need to report it as income?  Are there tax implications if she gifts the money? Read More ›

One of the most common notices we see at TaxAudit is the IRS Letter 3219C – also called a Notice of Deficiency. What is this notice? Why did you receive it? Read More ›

Whether you use your second home for personal or business purposes, the interest you pay on the mortgage may very well be deductible on your tax return. Read More ›

Yes, you can deduct educator expenses if you are what the IRS calls an “eligible educator.” However, there are certain limitations and conditions involved. Read More ›

Thirty days from the date of the IRS Notice CP90, the IRS has the right to begin taking assets. This can include bank accounts, wages, and retirement accounts. Read More ›

Yes, the tax code allows you as an individual to deduct the sales tax you paid during your tax year but, first, you must meet certain conditions. Read More ›

The IRS will calculate your interest and penalties daily and add them to the amount of tax debt you owe. Tax debt increases each day at an annual rate of 7.25%. Read More ›

If you are self-employed, you may be able to deduct your home office internet expenses on your taxes. Let's review the guidelines for an internet deduction. Read More ›

Many taxpayers use a written logbook that they keep in their vehicle or a software application on their smartphone to track their deductable miles. Read More ›

A tax refund offset can indeed be reversed – but it is not a simple matter. It would be much better for taxpayers to prevent the offset from happening. Read More ›

IRS CP80 notice explains you have a credit on your account for the tax year in question but have not filed a return. The credit will apply to any amount due. Read More ›

The answer to the question "Can I Deduct Federal Taxes Paid?" is maybe –  it all depends on where you live or what you do for a living. Let's explore more. Read More ›

IRS Notice CP60 informs taxpayers a payment was posted to their account in error. The IRS removed the payment and the taxpayer now owes additional tax. Read More ›

The IRS is required to send out these notices to any taxpayer who has filed a return and has a balance due that has not been paid. Read More ›

Rest assured that there are extensive resources available to help a taxpayer who owes more taxes than he or she can pay. Let explore some options. Read More ›

The Department of Treasury is authorized by the U.S. tax code to withhold part or all of a taxpayer’s Federal tax refund to pay past-due debt of $25 or more. Read More ›

Generally speaking, to deduct donations or contributions to your church, you must itemize your deductions on Schedule A (Form 1040). Read More ›

An IRS Notice CP49 is a letter from the IRS informing you that they used all or part of your tax refund to pay a past-due tax debt that you have. Read More ›

HOA fees are not deductible for a property used as your private home all year. But there may be a deduction for those who use their home for business purposes. Read More ›

An IRS CP501 is an official notice from the IRS Collections Unit that is sent to taxpayers to inform them that they have an outstanding debt. Read More ›

According to the Federal tax laws, unreimbursed COBRA payments are deductible as medical expenses on your tax return if you qualify to itemize your deductions. Read More ›

There is a very good chance that you can deduct your Medicare Premiums that you paid on your taxes. As always, there are different conditions that must be met. Read More ›

There are many ways taxpayers can deal with getting their tax debts settled but the best path for each taxpayer depends on the circumstances of their case. Read More ›

IRS letter 4800C is typically asking for verification of items you claimed on your tax return, such as credits, wages, and withholding. Read More ›

Dental expenses (if qualifying) can be included on Schedule A, Itemized Deductions - Medical and Dental Expenses, subject to a 7.5% Adjusted Gross Income. Read More ›

A tax refund offset occurs when the Federal Government’s Treasury Offset Program withholds part or all of an expected Federal tax refund to pay past-due debt. Read More ›

Kindergarten tuition is not deductible because the costs to attend are considered educational expenses. However, qualifying childcare expenses are deductible. Read More ›

What if you want to claim the Child Tax Credit, but your name is not on the birth certificate? This may be time to consider an IRS approved paternity test. Read More ›

How does the IRS determine what your primary residence has been to claim the exception or exclusion after selling a house? Let's go over the ownership tests. Read More ›

A CP30 notice is sent to inform you that your anticipated refund has been reduced. The IRS will outline why your refund was reduced and list the new amount. Read More ›

Yes, you can indeed receive a tax benefit for installing new energy efficient windows on your house – provided that certain conditions are met. Read More ›

Whether you can write off karate classes on your taxes relies heavily on your personal circumstances. Let's explore more. Read More ›

The State of Mississippi’s Department of Revenue (DOR) provides a number of different methods for you to deal with your tax problems and get your debt resolved. Read More ›

If you meet the conditions for the home office deduction, you are allowed to deduct a portion of your home insurance premium. Read More ›

Even though the amount you owe the State of New York Taxation Department seems overwhelming in terms of your ability to pay, there are some options open to you. Read More ›

I'm inheriting $44,000 from my father's house being sold in New York. I just want to know how much tax, if any, would I have to pay in South Carolina. Thank You Read More ›

IRS CP23 letter notifies you of a change to your return due to a difference between the amount of estimated tax payments and the amount posted to your account. Read More ›

There are some tax-saving opportunities available for graduate school tuition, like the credits for undergraduate expenses. They each have some limitations. Read More ›

The IRS sends out a CP14 notice to notify a taxpayer when they have unpaid taxes and/or penalties and interest. What should you do if you get a CP14? Read More ›

When it comes to medications, you can only deduct the amounts that you pay for medicines or drugs that have been prescribed for you by a doctor. Read More ›

In 2023 the tax returns are due April 18th for most taxpayers. However, if you live in California, Alabama, or Georgia your taxes may be due at a later date. Read More ›

My brother's wife died and he was left with the house. He gifted (no exchange of money) me the house and I sold it. How do I report capital gains? Read More ›

The biggest chunk that will be deducted from your paycheck is most likely taxes, both federal and state. Federal taxes include income tax and FICA. Read More ›

Can Grandparents take a deduction for paying the preschool tuition costs when the child still lives with the parents? To qualify you must meet the following. Read More ›

The IRS CP22A notice is letting you know that changes were made to your filed tax return, and because of this, there is now a balance owed. Read More ›

While some legal settlements can be excluded, either in full or partially, the vast majority of legal settlements will be considered to be taxable income. Read More ›

Generally, the costs of moving or disposing of items are considered personal expenses and are not deductible, even though removing the items are required. Read More ›

Tax audits can be stressful, but they can yield valuable results such as unexpected refunds, beneficial education, and the peace of mind of being compliant. Read More ›

The IRS wants to get paid but it understands a lot of folks cannot pay in full right away, so the IRS created several ways to work with taxpayers who owe money. Read More ›

Writing off the purchase of solar panels for your sole proprietorship can be complicated, but we will try to highlight some of the options for you to consider. Read More ›

Falling behind on your California payroll tax payments effects not only your employees, but also on your business operations as the EDD imposes penalties. Read More ›

If the IRS hasn't debited your accound payment, the first step is to contact your bank to see if the payment has been taken from your account. Read More ›

To claim a dependent on your tax return (and all the credits that come with that dependent), your child must meet a set of requirements. Read More ›

Because of changes to tax law in 2018, Schedule A deductions for advisory-type expenses will not be available until 2026 at the earliest. Read More ›

The IRS is billed you $4,000 due to a $8,000 capital gain or dividend. You don’t know what the $8,000 is from and believe if inherited it should be tax free. Read More ›

IRS letter CP13 states a miscalculation was made on your tax return and that you do not owe any additional tax, but you will no longer be receiving a refund. Read More ›

Employees cannot deduct dry-cleaning costs on federal taxes until 2026, but self-employed individuals can take the deduction by meeting 3 qualifying tests. Read More ›

Fortunately, the short answer to the original question is yes, Illinois state payroll tax debt can quite possibly be reduced. Read More ›

The IRS has the power to impose some very strong penalties for businesses that fall behind in their obligations to make the scheduled payroll tax deposits. Read More ›

CP11 explains that the IRS has made changes to your return in order to correct a miscalculation made while filing your taxes and additional taxes are due. Read More ›

You cannot claim yourself as a dependent. It can be helpful for you find out who actually can claim you as a dependent and whether or not they intend to do so. Read More ›

CP504 is one of the scariest notices you can receive as it is considered a final notice, warning that the IRS is preparing to levy (or seize) a property. Read More ›

When considering using retirement funds to help pay for a new home, there are generally two common options taxpayers can consider: A 401(k) plan or an IRA. Read More ›

An Offer in Compromise may help certain taxpayers who cannot pay their tax debt to the California Franchise Tax Board in full. Let's review the requirements. Read More ›

Yes, you can deduct your business meals – but there are conditions that must be met. Under normal circumstances, qualifying business meals are 50% deductible. Read More ›

The IRS sends letter 4464C to inform you they have chosen to verify your return accuracy. It's sent after a return has been filed but before a refund is issued. Read More ›

Medical expenses are deductible, but whether or not you can claim this deduction depends entirely on the amount you spent and the amount you earned. Read More ›

The IRS has established payment programs to allow a personal or business debt to be paid off over an agreed period of time. Here's how to set up a payment plan. Read More ›

The length of a tax audit depends on many factors and can go on for months or even years. You don't have to face a tax audit alone though - TaxAudit can help! Read More ›

Not all IRS letters are bad news, and the CP09 is one of them. The IRS noticed you did not claim the Earned Income Credit and believe you might qualify for it. Read More ›

A large tax refund alone will not necessarily generate a tax audit, but if the reason why you received a large refund is questionable the IRS may peek closely. Read More ›

Taxpayers receive an IRS CP503 because they have an unpaid tax debt. This is the 2nd notice the IRS sends taxpayers that they have an outstanding balance due. Read More ›

You can likely deduct your out-of-pocket assisted living expenses on your Form 1040 tax return. But, as always, there are some conditions that have to be met. Read More ›

As with most tax questions, the answer to this question can be a little complicated. Dependent adult children will fall into one of two categories. Read More ›

Is investing in real property, particularly rental property, a good idea for your retirement investments, especially your traditional IRA or Roth IRA? Read More ›

I had a friend do my taxes last year! And she has not contacted me since!! I feel in my gut that she has gotten it and used it and or my identity?? Read More ›

You can indeed arrange IRS payments. You can negotiate a plan with the IRS to pay your debt off in either a short-term or long-term series of installments. Read More ›

Are attorney’s fees deductible on my tax return? The answer, like a lot of answers to tax questions is: Sometimes yes, sometimes no. Let's explore more. Read More ›

The IRS likely sent you a CP14 prematurely. The IRS may have received your payment, but it hasn't been fully processed due to the IRS enormous backlog of work. Read More ›

Accountant fees for a business purpose are generally deductible, but when those fees are incurred for a personal purpose, they are currently not deductible. Read More ›

My wife will be inheriting her father's home. We intend to sell our home and invest the proceeds to remodel this inherited property. What is the tax process? Read More ›

Can you negotiate to avoid a wage garnishment before it starts? Can you negotiate the amount of the wage garnishment? Let's explore the answers. Read More ›

The qualified business income deduction is calculated by taking the income and losses from all your business activities and netting them into one amount. Read More ›

You owe money to the IRS and you can’t pay it all off right now. Let's explore different payment plan options based on your tax situation. Read More ›

The IRS treats payroll tax debt seriously. Any employer or employee whose job it is to collect and pay the taxes, but willfully fails, can be held responsible. Read More ›

The costs of utilities can indeed be deductible under certain circumstances, so let us talk about those occasions when you can deduct your utility expenses. Read More ›

Yes – there are quite a few different personal and business taxes you may be able to deduct. But, as always, it depends on your particular situation. Read More ›

For most taxpayers bank fees are not deductible. However, taxpayers who operate their own business may be able to deduct bank fees. Read More ›

Electing to group properties together into one activity to qualify for real estate professional status comes with some disadvantages. Let's explore more. Read More ›

Now that you have received a notice from the IRS, you want to know if you are still going to get your tax refund. The answer is – maybe. Ler's explore more. Read More ›

Your son does not need to report or pay tax on the $70,000 you gifted him from the inheritance your wife received from her mother’s probate! Let's explore more. Read More ›

There is a very good chance you can get a deduction on your taxes for the State sales taxes that you had to pay on your new car, truck, van, or other vehicle. Read More ›

If the IRS applies your payment to the wrong tax year, they will generally fix the issue once they know the problem. Let's learn more. Read More ›

What can cause a tax audit? Let’s talk about some of the primary triggers that may cause you to receive an audit or other notice. Read More ›

Making sure your tax return is correct, even if that means amending your return, is better than having an incorrect return and hoping the IRS doesn’t notice! Read More ›

Do we actually know what a tax audit is, why they exist, and what we can do to prepare for one? Let's explore the answer to these tax audit questions. Read More ›

The IRS has an Offer in Compromise program to allow qualified taxpayers settle their tax debt for less than the full amount owed. Here's what you should know. Read More ›

The answer to “Can I Deduct Property Taxes?” is not simple. Hopefully, this article will give you a better understanding of when you can deduct property taxes. Read More ›

Yes, you can deduct interest on your business and personal credit cards to the extent that the interest relates to business expenses. Let's explore more. Read More ›

A taxpayer can seek relief from a spouse's tax burden by applying for the Innocent Spouse program or the Injured Spouse program, depending on the circumstances. Read More ›

When someone other than a spouse inherits an IRA, the IRA is considered an inherited IRA and the rules are stricter than when a surviving spouse acquires it. Read More ›

Cryptocurrency is not treated as money for U.S. federal income tax purposes, but rather as property so tax rules that apply to property apply to cryptocurrency. Read More ›

The IRS uses an annually updated wage garnishment table to determine how much the taxpayer needs to live on and then the IRS takes the rest. Read More ›

If you review the CP12 notice and do not believe it is correct, it is vital to contact the IRS within 60 days of the date on the notice to request an abatement. Read More ›

Yes, you can deduct a portion of your home rent for your home office on taxes – but as always , this benefit is only available if certain conditions are met. Read More ›

We sold my wife's parents' house. Do we have to pay taxes on it if we put it in a money market account in our name?  It depends on a taxpayer's circumstances. Read More ›

A tax audit is a formal examination of an income tax return. The IRS conducts tax audits to ensure the information on a tax return and amount paid is correct. Read More ›

Real estate professionals can claim unlimited losses on rental properties they materially participate in but there are many rules involved in qualifying as one. Read More ›

If your rental property is incurring losses, those losses may be limited on your taxes based on other income you receive. Let's explore more. Read More ›

If the IRS notices that you filed an amended return, will that cause them to inspect your tax return more closely and trigger a full-blown tax audit? Read More ›

The IRS offers a series of payment plan options for those individuals and businesses who need more time to pay their tax debt. Read More ›

The good news for other farmers is that, under certain conditions, the tax code allows for the deduction of farm expenses even if they are greater than income. Read More ›

The IRS will always notify you by mail if your tax return is selected for audit. The IRS will not initiate an audit by a phone call, email, or text message. Read More ›

The IRS takes payroll tax debts very seriously and has the power to impose some very strong penalties for businesses who fall behind in this area. Read More ›

"Winning a tax audit,” simply means that you’ve paid the IRS no more than you rightfully owe. This is where the professionals at TaxAudit come in to help! Read More ›

If you have ever gone through an audit with the IRS or are just curious why the IRS audits tax returns in to begin with – you are in the right place. Read More ›

Two payroll tax deferral programs were launched in 2020 in an attempt to relieve the cash flow squeeze that was affecting both businesses and their employees. Read More ›

The surprising answer is yes – you can deduct some of your wedding expenses from your taxes under certain circumstances. Let's take a closer look. Read More ›

Certain categories of employees can claim the deduction for unreimbursed employee business expenses, but not all. Let's explore some examples. Read More ›

The IRS has a fixed amount of time to try to get you to pay your tax debt. This fixed period is known as the “statute of limitations,” which generally 10 years. Read More ›

The gap between what taxpayers owe versus what they actually pay looms large. IRS audits are an attempt to collect the funds required to close this gap. Read More ›

If you owe the IRS money for taxes and have not been able to pay or make other arrangements, the IRS has the legal right to seize some of your possessions. Read More ›

State agencies who collect income tax can audit your tax return. One of the most common reasons for a state audit is the audit of your federal tax return. Read More ›

Insurance policies may cover part of nursing home costs and the unreimbursed expenses can often be deducted on a Form 1040 individual tax return. Read More ›

Rent can be deductible, but it depends on what is rented, the purpose of the rental, who receives the rental payments, and the terms of the rental agreement. Read More ›

Yes, the IRS does offer payment plans to those taxpayers who owe taxes. The IRS offers a series of payment plan options for those who need more time to pay.  Read More ›

Since the government considers your vehicle to be just another piece of property, so is there a tax deduction for the theft of your car? Let's find out. Read More ›

There are some parts of the tax code that, in fact, can allow tuition fees to be fully deductible. However, in most cases you cannot deduct private tuition. Read More ›

If you suffered economic losses, you may have a net operating loss (NOL) on your taxes. Getting audited by the IRS for an NOL can be complicated. Read More ›

You received an IRS notice CP162 in the mail. You are probably wondering why you received this notice and what it means – we are here to answer your questions. Read More ›

We had a water leak in our home. The clean up used chemicals which caused us to get rid of our clothing, bedding, and furniture. Is this deductible? Read More ›

If you’ve been lucky enough to never receive a love letter from the IRS, you’ve probably wondered: What is it like to go through a tax audit? Read More ›

The IRS sends out lots of different types of letters to taxpayers and one such letter is the CP21B. If you have received a CP21B letter, what do you need to do? Read More ›

If you volunteer for an organization, do you get a tax deduction for your time or talent? Let's also look at volunteering use of property and other expenses. Read More ›

With TurboTax Audit Defense if you receive a letter from the IRS or state tax agency, simply contact TaxAudit that you’ve received IRS correspondence for help. Read More ›

If you have audit protection, you don’t have to panic when you get a letter from the IRS. Instead, you can call TaxAudit right away, so we can step in to help! Read More ›

First, the essential concept to understand is that cryptocurrency is not treated as money for U.S. federal income tax purposes but is treated as property. Read More ›

What is Audit Defense? And is it worth it? Let's provide some clarity about exactly what you are getting when you purchase Audit Defense from TurboTax! Read More ›

You’d like to know if you can file an amended tax return to claim the Recovery Rebate Credit if you did not receive the economic stimulus payment. Read More ›

I received 3 1099 forms - 1 for interest and two from houses which were sold in the months after his passing. Is the estate required to file a return? Read More ›

If the IRS is taking your refund, sometimes you need a qualified tax professional who understands IRS collection procedures to intercede on your behalf. Read More ›

As the person wrapping up your loved one’s financial affairs, you know at the very least you will need to file their final individual income tax return. Read More ›

When you owe money to the IRS, they can take a variety of actions against you to collect the balance due. You can repay the IRS debt using unemployment checks. Read More ›

Communicating with the IRS to work out a payment plan, put a hold on your account, or even negotiate a lesser amount due may help delay or avoid the IRS levy. Read More ›

Whether an amount paid for taxes as the result of an IRS or state tax audit is deductible depends on the type of taxes involved. Let's explore more… Read More ›

Father died 30 years ago. Stepmother just sold house and children split father's portion of sale (after filing of an affidavit of heirship). Do we owe taxes? Read More ›

TaxAudit specializes in tax relief help, and we are so confident in our ability to help taxpayers navigate tax debt - we believe we have it down to a science. Read More ›

The 2021 expense limit for this credit is $8,000 for one qualifying child, and $16,000 for two or more qualifying children. The credit is a % of those expenses. Read More ›

Is there relief from the government in the form of a tax break? Like many things in taxes, this can depend on different things, such as what caused the fire. Read More ›

You received an IRS Notice CP12 because the IRS corrected one or more mistakes they believe were made on your tax return. What do you need to do? Read More ›

For many taxpayers who operate small businesses, the qualified business income deduction can be an excellent way to reduce your income taxes. Read More ›

TaxAudit provides Tax Debt Relief services that make dealing with the IRS or state less stressful. We know the the laws regarding taxes and tax debt collection. Read More ›

You asked if you could deduct tuition expenses for enrollment in a graduate degree program as a job-related education expense on federal and NY state taxes. Read More ›

You asked whether the mortgage payments that your ex paid on the house you received in the divorce are taxable. This answer depends on your specific situation. Read More ›

To know if your home inheritance is taxable income you will need to start by figuring out what your step up in basis is - the property value when someone dies. Read More ›

Now that you have your Letter 6475, what should you do with it? The letter will inform you of the amount that the IRS paid to you for the third EIP payment. Read More ›

My fiancé has recently been incarcerated. Prior to arrest he filled on pandemic unemployment, but I did not. How should I file taxes this year? Read More ›

There are many options for managing your small business tax debt. A tax resolution specialist from TaxAudit can guide you in choosing the best approach. Read More ›

Trade or business property is considered section 1231 property. For taxation purposes, section 1245 or 1250 applies depending on the property’s characteristics. Read More ›

To claim a child for this credit, the child has to meet several tests. Biology isn’t a disqualifier in claiming dependents, but other factors must be met. Read More ›

One of the best ways to check the status of your refund is on the IRS website. Your tax professional may also be able to give you a timeframe for your refund. Read More ›

Yes! Audit Defense is worth it. Not only do audit defense members get help with IRS and state correspondences – there are a variety of other benefits. Read More ›

If you are one of the millions of taxpayers who use TurboTax to file their taxes, you may have asked: Can I deduct my TurboTax purchase? In short: it depends! Read More ›

The IRS will issue Letter 6419 to provide the total amount of advance credit that was paid to the taxpayer -  keep this letter for your 2021 tax return! Read More ›

If you find yourself with tax debt due to unpaid payroll taxes, you may have options to help settle the debt. Let’s review some payroll tax debt relief options. Read More ›

If you have a large tax bill, figuring out your options for getting out of tax debt can be stressful. Thankfully, there’s a proven approach you can follow. Read More ›

Many taxpayers who owe back taxes look for a way to get their tax debt forgiven. The availability of tax debt forgiveness depends on a variety of factors. Read More ›

You open your mail and see IRS Letter 5071C. What on earth does this letter mean? Are you being audited? Why did you receive this letter in the mail? Read More ›

The IRS has several courses of actions they can take to collect funds owed to them. The three most common are liens, levies, and garnishments. Read More ›

You received an IRS Letter 5071C for a tax year in which you never filed a tax return. It is likely that someone might have filed a tax return in your name. Read More ›

If you’re struggling with back taxes, you may be able to qualify for assistance under an IRS initiative called Fresh Start. Here are 3 ways to be eligible. Read More ›

Yes, the length of time the IRS is allowed to collect a tax debt is generally limited to 10 years. Is waiting out this period a strategy for resolving tax debt? Read More ›

When a taxpayer fails to file their return, the IRS will come knocking usually in the form of a notice of tax due for back taxes. Back tax help is available. Read More ›

If you qualify, Innocent Spouse Relief can help remove or particialy remove a tax burden from an innocent spouse. Read More ›

Estimated tax payments are additional payments that taxpayers may make on a quarterly basis to cover any additional taxes that may be due. Read More ›

Generally, the IRS can take up to 3 years from the date you filed to review your return. In certain situations the statute of limitations can be extended. Read More ›

A taxpayer with a sole proprietorship and reports business income and expenses on a Schedule C may claim a prorated amount of the Audit Defense Membership. Read More ›

As a military member do you have the same tax filing deadline as U.S. citizens? Are there tax filing extensions available for deployed members of the services? Read More ›

Taxpayers who are behind on their federal taxes may be surprised to know that their Social Security benefits are ripe for the picking by the IRS. Read More ›

Yes, TurboTax Audit Defense It is absolutely worth it. Those who have audit defense do not have to panic or make frantic calls upon receipt of IRS tax notices. Read More ›

The most important thing about having audit defense, in my opinion, is peace of mind. Your tax professional will help you navigate the waters of a tax audit. Read More ›

If you are a small business owner, you may have heard about net operating losses. If you have one, it may create a reduction in your taxes in other years. Read More ›

The first thing to do when you get audited by the IRS is to not panic! It be scary but with the right tools and resources you will be able to get through it. Read More ›

Absolutely! Now’s let’s chat about how and why audit defense works. Any taxpayer may be subject to receiving an audit or notice in the mail. Read More ›

Recently, the IRS sent many taxpayers  a confusing set of letters. The follow-up notice, Letter 6470, notifies the taxpayer of their legal rights to appeal. Read More ›

Rest assured the IRS has no advance knowledge that you have elected to have representation in the case of an audit through Audit Defense. Read More ›

You might be questioning if TurboTax Audit Defense is any good as you file your tax return through TurboTax. Yes, you want audit defense and it is worth it! Read More ›

Back taxes are defined as taxes that were not paid in the year they were due. Penalties and interest may also get tacked onto back taxes if they remain unpaid. Read More ›

One way to find out how much money you owe the IRS is to use the IRS Online Account tool, which allows you to view helpful information about how much you owe. Read More ›

Audit Defense means you will have professional representation in the case of receiving an audit notice from the IRS or any state income taxing agency. Read More ›

With over 1,700 years of combined Tax Professional experience, TaxAudit's Tax Pros have expert knowledge when dealing with the IRS and State tax agencies. Read More ›

If you haven’t received a notice from the IRS, but think you might owe money to the IRS, you can also utilize the IRS' Online Account tool. Read More ›

One of the frequently asked questions we get from our customers is, “Can I buy audit defense for tax returns filed in previous years?” The short answer is: Yes! Read More ›

Under certain circumstances you can indeed claim a tax benefit for preschool tuition - called the Child and Dependent Care Expenses tax credit. Read More ›

New Jersey, NJ imposes a tax on the beneficiaries of estates. The tax return requires the tax be paid by the estate on behalf of all the estate’s beneficiaries. Read More ›

The terms ‘audit support’ and ‘audit defense’ may sound like the same thing for the average taxpayer.  But in the world of taxes, they can be very different. Read More ›

My Aunt died and the bank sold her house. The bank sent me a check for "excess proceeds" from the house sale. Do I owe any tax on this money? Read More ›

As long as you used the home as your main residence for at least 730 days during the last 5 years, you may be allowed to exclude up to $500,000 of capital gain. Read More ›

It seems like a simple idea: convert that account to a Roth and you can withdraw the money tax-free in future years. But is it a good idea for you? Read More ›

I could not have been more pleased with TaxAudit services. I highly recommend this service for anyone who does their own taxes. Read More ›

Whether you will be taxed on the money received from a trust will depend on the type of trust and the instructions laid out, the assets titled, and more. Read More ›

You are responsible for paying the taxes on the amount realized in the sale. The buyer is generally not required to withhold income taxes on the proceeds. Read More ›

As taxpayers, we are personally responsible for filing our returns both on time and accurately. Failure to do one or both can result in significant penalties. Read More ›

Generally, the IRS has ten years from the date tax is assessed to collect a delinquent tax liability. However, the answer is not that straight forward. Read More ›

Can you inherit an IRA and not pay tax? Individual retirement accounts can transfer to a beneficiary without immediate tax consequences if no money is withdrawn Read More ›

An RMD is a required minimum distribution from a retirement account such as a Traditional IRA or defined contribution plan (like a 401k). Read More ›

Yes, TaxAudit is a good company that has been providing clients with A+ rated tax representation services since 1988. TaxAudit truly cares for its clients. Read More ›

There are hundreds of different types of letters and notices you can receive from the IRS. Let's focus on a few of the more common IRS notice types we see. Read More ›

A lien is when the IRS makes a legal claim to property as security for the payment of tax debt. There are many methods to resolve an IRS tax lien. Read More ›

The fastest answer is how far back do you need to file? How deep do you want or need to dig into your records to get your taxes up-to-date with the IRS? Read More ›

The results of the Tax Cuts and Jobs Act have made brokerage fees non-deductible for any returns filed between 2018 to 2025. Read More ›

You are ready to begin the process of preparing your back taxes – but you realize your records are lost. Never fear. There are ways to rebuild your records. Read More ›

There are several tax benefits which you might want to anticipate before you file your 2021 tax return next year. Here is a summary of some of the tax changes. Read More ›

If you are under audit, it is acceptable to submit your current tax return. Just be mindful that you may have to amend it once the previous year's audit closes. Read More ›

An incarcerated person can actually e-file for themselves online if they have internet access in prison. If they are unable to do so, you can do it for them. Read More ›

Put simply, your audit defense membership is valid as long as your tax return is eligible to be selected for audit or review by the IRS or State! Read More ›

If you operate a business from inside your home, the home office deduction can be one of the largest deductions you can take as a tax write-off. Read More ›

My wife drives to transport our granddaughter to our house to watch for the day. Is this to-and-from mileage deductible as a job-related expense? Read More ›

When you prepare your federal income tax return, your business may incur a loss. Here are the tax implications if you have suffered a net operating loss. Read More ›

As a self-employed taxpayer, you can deduct your business-related parking fees as an expense on Schedule C, Profit and Loss from Business. Read More ›

I had investment capital losses of over 17,000 dollars, yet my Schedule D is only allowing a $3,000 loss. Can I take the additional losses in future tax years? Read More ›

I inherited a property located in foreign country from non-US relative, do I need to file 1099-S? I did not receive 1099-S since the property is not in USA. Read More ›

The IRS encourages electronic filing to avoid processing delays. However, you may mail your IRS and state returns in. You can find the address required here. Read More ›

Well, the truth of the matter is that an attorney is not always needed but, in some cases, one is absolutely required. So, how do you know when that might be? Read More ›

The IRS takes payroll tax delinquency seriously – so seriously that IRS Revenue Officers have closed down businesses for not paying them. Tax help is available. Read More ›

When you filed your tax returns through TurboTax, you decided to opt in and purchase Audit Defense. If you get a future IRS letter, how does Audit Defense work? Read More ›

The thought of owing the IRS money can be a scary thought – especially if you’re not sure you do! The IRS has provided tools to help taxpayers like you! Read More ›

Your audit defense membership with TaxAudit provides expert representation for each tax return year for which you have a membership. Read More ›

The IRS denied your request, so what now? What if you do not have resources to pay the additional tax that may not have been yours to begin with? Read More ›

There are several different tax breaks available for solar panels used either in the home or in a business. Let’s look at a couple of examples. Read More ›

For IRA contribution purposes, certain third-party sick pay does qualify as compensation. But, there are instances where it is not considered compensation. Read More ›

Why doesn't my IRS account show I owe money if I received a Notice of Deficiency? A Notice of Deficiency represents an estimated amount due and isn't finalized. Read More ›

When you inherit real property, like a home, then for tax purposes the beneficiaries receive what is called a “stepped-up” basis. Read More ›

When you are relieved of debt through the cancellation of debt, that amount is considered to be income to you, even though you did not receive cash. Read More ›

The IRS has not issued guidance on whether an EIP distribution will be placed on hold if a taxpayer’s 2020 return is audited to question dependents. Read More ›

You can "deduct" real estate taxes paid over the course of owning a piece of land in the year the land is sold, if the land was vacant, but there is a catch. Read More ›

Under the CARES Act, you can receive a “qualified coronavirus-related distribution” from your retirement plan and avoid the 10% penalty on early distributions. Read More ›

Generally, as long as the incarcerated person is a US citizen (or resident alien), has a valid SSN, and is not claimed as a dependent, they may qualify. Read More ›

What should I do if I receive a notice for overpayment from work benefits with the workforce commission, and I have already filed my taxes? Read More ›

For 2020 taxes, the CARES Act allows individual taxpayers who do not itemize to claim a deduction up to $300 ($150 for MFS) for cash charitable contributions. Read More ›

If I haven't worked in a couple of years and didn't file taxes or get the first stimulus check, then where do I start or how do I file? Read More ›

My grandson is in my custody and his mom allowed another person to carry him on taxes..my taxes were rejected. What should I do next? Read More ›

It is not uncommon for state wages to be higher than their federal wages. This alone generally should not trigger a return to be rejected for e-filing. Read More ›

If the income items on the Schedule K-1 are sufficiently large, they will generate additional taxes due on your return. You will need to amend your tax return. Read More ›

Yes, you can purchase audit defense a la carte on TaxAudit's website (www.taxaudit.com). TaxAudit is the leading audit defense company in the nation. Read More ›

Overall, two things are important when determining if you can deduct your zoo membership. The first is what type of organization is the zoo? Is it a non-profit? Read More ›

What a satisfaction it is saying goodbye to old debts. There are several options available to taxpayers who want to make a payment for back taxes to the IRS. Read More ›

Retirees should be aware that, for calendar year 2020, the required minimum distribution (RMD) requirements have been temporarily suspended. Read More ›

Having custody does not determine who can claim a child as a dependent. The IRS will look to who can prove the child lived with them most of the year. Read More ›

If you didn't receive an Economic Impact Payment and meet the requirements, you can still receive the payment when you file your 2020 federal income tax return. Read More ›

When you purchase Audit Defense from TaxAudit, you’re purchasing more than just assistance with your IRS or state notice. You are choosing peace of mind. Read More ›

When you can't make your tax due payment without impacting your ability to pay for living expenses, the IRS can put you in Currently Not Collectible status. Read More ›

There are several federal and state agencies that may have an interest in questioning a business’ operations, income, and expenses after it is closed. Read More ›

There are a bevy of options available to taxpayers who want to make a payment to the IRS online. The IRS even has an app for that! Read More ›

Replacing an entire roof will increase the cost basis of the home. However, any costs paid or reimbursed by an insurance are not added to the home's basis. Read More ›

Most CP05 letters will not require immediate action on your part. Generally, the IRS does their review within the timeframe noted, and the refund is released. Read More ›

When a taxpayer does not file their income tax return or ignores an audit notice, the IRS makes tax assessments based on info received from third parties. Read More ›

If you are buckling under the weight of an IRS wage garnishment, it is time to get yourself free! We have seven practical ways to stop an IRS wage garnishment. Read More ›

Depending on the nature of the education, there may be an avenue to account for work related education expenses on one's tax return. Read More ›

Funeral and burial expenses can be deducted if they were paid out by the estate of the deceased person. However, most estates never use this deduction. Read More ›

Real Estate taxes might be deductible on your personal or business taxes, it depends on your situation. Let's start by looking at the tax assessor’s bill. Read More ›

The general rule is that you can deduct the costs of vitamins as a medical deduction only if your doctor prescribed them to treat a specific medical condition. Read More ›

When people ask me for advice on how they should deal with filing unfiled tax returns, I usually tell them to file the most recent year first. Read More ›

You can deduct certain state and local taxes (SALT) if you choose to itemize deductions on your tax return rather than claiming the standard deduction. Read More ›

There is a very good chance that you can indeed deduct the cost of your oil changes if you use your car or truck for business purposes. Let's look closer at it. Read More ›

In general, only mortgage interest and property taxes are deductible in the transaction year, while some expenses and fees can be added to the cost basis. Read More ›

Avoid the temptation to ignore the notice. In most cases, the IRS or a state agency may only need additional information to finish processing your return. Read More ›

Knowing whether you are liable for back taxes owed by your spouse depends upon a variety of factors. Let's discuss the various aspects of spouse liability. Read More ›

Yes, of course – well, maybe. Like many tax deductions, the student loan interest deduction for parents comes with a list of conditions that must be met. Read More ›

We know our senior citizen population can be particularly vulnerable to being targeted by scammers looking for free money or personal information.  Read More ›

When a taxpayer receives a collection notice from the Internal Revenue Service, their typical first reaction is one of panic but it doesn't have to be scary. Read More ›

The length of an audit depends heavily on the issues being addressed, the level of documentation required, and the Examination Division doing the audit. Read More ›

The cost of baby formula for your own infant is generally not considered something you can write off on your taxes. However, there are exceptions. Read More ›

CNC status is for taxpayers who cannot make any tax debt payments without seriously jeopardizing their ability to pay for their basic living expenses. Read More ›

The IRS can attempt to collect unpaid taxes for ten years from the time the tax was assessed. The IRS can try to collect the tax in a variety of ways. Read More ›

A tax deduction for qualified tuition expenses has generally been available for many years. However, it has never been a permanent part of the tax code. Read More ›

Generally, a “regular” limited partnership does not throw off any income that would make it currently taxable while it is inside an IRA. Read More ›

Consider the potential risks and benefits before adding an adult child or caregiver as an owner of your home, bank account, credit card, or any other asset. Read More ›

If you choose to mail in your tax payment to the IRS or state, I recommend mailing it via certified return receipt or priority mail so that you can track it. Read More ›

When operating a business, the last thing you want to worry about is being audited by the IRS or a state agency. Record keeping should be a high of a priority. Read More ›

The IRS generally considers your primary residence to be the home where you spend the most time, but also looks at numerous other factors. Read More ›

The tax gap is the difference between what the government actually collects in taxes versus what they should have collected to cover the real tax liability. Read More ›

If you owe the IRS back taxes, don’t start spending your refund before it arrives. The IRS can levy or take your refund and apply it to your tax debt. Read More ›

For individual taxpayers, the cost of driving your vehicle for work is not an allowable deduction for tax years 2018 - 2025. This rule does not apply… Read More ›

With innocent spouse relief, you can request the IRS remove your liability for taxes, penalties, and interest owed on income your spouse did not report. Read More ›

First, it is essential to make sure you actually owe the tax due. The next step is to figure out how to pay the tax as quickly and painlessly as possible. Read More ›

First and foremost, audit defense works by protecting you from the hazards and stress of facing off against the IRS (or a state tax agency) on your own. Read More ›

A person may be relieved of paying some or even all of the tax, penalties, and interest on a tax debt if they meet the conditions for Innocent Spouse Relief. Read More ›

The interest rate charged by the IRS on back taxes is the federal short-term rate plus 3%. The rate is set every 3 months. Read More ›

Yes, TaxAudit, the exclusive provider of TurboTax Audit Defense, represents members through the completion of any state or federal income tax audit. Read More ›

Yes, there are legitimate tax relief companies that can help you reduce your tax debt. However, there are scam companies as well. Learn what to look out for. Read More ›

Costs for home improvements, such as a new roof, add to the cost basis of your property and will reduce your taxable gain when you sell your home. Read More ›

TaxAudit is the exclusive provider of TurboTax® Audit Defense. The phone number for TaxAudit’s customer service department is 877.829.9695. Read More ›

The employer has the job of gathering the information needed from the affected employee to determine the correct wage garnishment amount from the IRS tables. Read More ›

The first step in preparing for that audit is reading the letter carefully. Audits rarely examine everything on the return, but only ask about specific items. Read More ›

If you need some time to pay, the IRS has payment plan options available. (1) Short-term payment plan (2) Long-term payment plan (paying in more than 120 days) Read More ›

The answer for most states is no. However, 6 states allow some form of this tax break (AL, IA, LA, MO, MT, OR), but only AL, IA, and LA allow a full deduction. Read More ›

With the July 15th tax deadline approaching, here’s what you need to know. (1) If You Need More Time, You Can Still File for an Extension (2) Pay What You Owe Read More ›

The reality is you can sell your house to your child, grandchild, or anyone else for that matter, for $1. But just because you can doesn’t mean you should. Read More ›

Yes, it is possible to make a deal to keep the IRS from garnishing your paycheck. Making payment arrangements with the IRS maybe all that is needed. Read More ›

Audit defense gets you access to a dedicated tax professional who will develop a strategy and handle all communications with the IRS or state agency. Read More ›

When you enter into a payment plan with the IRS, known as an Installment Agreement, the IRS will release an active wage garnish order. Read More ›

Before your audit defense certificate can be sent via email, TurboTax must first notify TaxAudit of the audit defense purchase. This usually takes 1 to 6 days. Read More ›

While there are several ways to save on your tax bill, one of the easiest ways is to put money away for retirement. Read More ›

For 2018 taxes I did not add my 1099. The IRS is saying I owe. How can I remedy this? I have the 1099 ready to add. Read More ›

I am a mobile notary Signing Agent. When doing quarterly payments, would I claim pay on the month I do appt. or when I get paid? Read More ›

In 2011, the IRS launched the Fresh Start program and has since expanded the program in the hopes of assisting more taxpayers who carry federal tax debt. Read More ›

It all depends on your babysitting gig. Are you employed by an agency to work as a babysitter? Or are you self-employed with your own babysitting business? Read More ›

Credit card interest for personal expenses is generally not deductible. However, credit card interest connected to trade or business expenses can be deductible. Read More ›

Generally, when you inherit money it is tax-free to you as a beneficiary. However, like so much in tax law, the answer to this question is “it depends.” Read More ›

The IRS has published a “Dirty Dozen” list to warn taxpayers to beware of joining the thousands of people who lose millions of dollars to scammers each year. Read More ›

If you are currently under audit with IRS, you will still receive a stimulus check if your income falls within the eligibility limits. Read More ›

If you are the sole proprietor, the chance of being selected for audit by the IRS is 4.5 to 12 times higher than it is individuals without a business. Read More ›

If you received a CP2000 notice from the IRS, it helps to understand what it is and how to handle it. Here are a few essential things to know about a CP2000. Read More ›

Taxpayers must constantly be on the lookout to avoid getting caught up in the many scams and schemes that try to separate us from our hard-earned dollars. Read More ›

Generally, yes. If you owe back taxes or have a payment agreement with the IRS, you will still receive a stimulus check if you are eligible to received one. Read More ›

Thankfully, for those who owe federal income taxes on their 2019 individual income tax return or are on the hook for prior tax years, help has arrived. Read More ›

Under current federal law, union dues are generally not deductible. However, there are a few exceptions, and if your union dues meet one of them you are in luck Read More ›

Generally, Married Filing Jointly is more beneficial as some deductions are not allowed if you file Married Filing Separate. You can use tax software to compare Read More ›

For some of us, retirement seems like an eternity away; for others, it is just around the corner. It is never too early to start saving for the future. Read More ›

The IRS may collect federal taxes that are due by garnishing (levying) a taxpayer’s wages. The IRS will notify your employer to begin garnishing the wages. Read More ›

Many people try to guess the amount of their closing costs and use that for their taxes. If they are ever audited, this would not likely work out well for them. Read More ›

President Trump signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The bill includes tax-related provisions for individuals and businesses. Read More ›

The Fresh Start program is designed so that taxpayers pay their debt in full within six years, and without a serious financial burden being placed upon them. Read More ›

If you owe back taxes, there are options to resolve your back taxes, and TaxAudit can help. Here are a few possible options: Read More ›

On March 20, 2020, U.S. Treasury Secretary Steven Mnuchin announced that the Treasury Department is extending the filing deadline for 2019 tax returns. Read More ›

Audits happen for many reasons, and while you may think a disgruntled neighbor ratted you out, the reality is most IRS audits are initiated for other reasons. Read More ›

There is a growing number of criminals and fraudsters that are constantly trying to gain access to our bank accounts through clever scams and schemes. Read More ›

The CP2501 notice is just one way IRS asks you about the income you reported on your return and where they feel you may have omitted something. Read More ›

Yes, it is possible to pay taxes in installments. For many people, the process of applying for an installment plan with the IRS may not be difficult. Read More ›

For federal tax purposes, there is no deduction available at this time. However, the loss may or may not be deductible on your state tax return. Read More ›

Two words: almost anything. Wages, retirement accounts, bank accounts, vehicles, houses, furniture, and even passports are all fair game. Read More ›

Tax Topic 151 means the Department of Treasury will be taking your refund or part of your refund to pay for something that has been reported that you owe. Read More ›

 Whether it’s an audit or a notice, receiving a letter in the mail from the IRS is most taxpayers’ worst nightmare. What can you do that will lower your risk? Read More ›

Paying for college tuition is an expensive endeavor. Fortunately for those who qualify, there are some tax breaks available. Read More ›

No matter the cause of each person’s tax debt, there are a number of different programs offered by the IRS to help taxpayers get back into the good books. Read More ›

From a tax standpoint, a relationship that is established by marriage, such as your relationship with your mother-in-law, does not end with divorce. Read More ›

Options are available to those who cannot pay their taxes in full by the deadline. A good line of communication with the CA Franchise Tax Board is critical. Read More ›

Having a tax bill is not a situation anyone wants to be in. Fortunately, there are ways to deal with tax debt owed to the IRS. Let's explore a few solutions. Read More ›

If you have unreimbursed business expenses as an employee, then those expenses are generally no longer deductible on your 2019 federal tax return. Read More ›

The answer to this depends on your particular financial circumstances, how much you owe the IRS, and why you owe them money in the first place. Read More ›

A tax professional spends four to ten or more hours per audit - think of the time and stress you could save yourself if you purchase pre-paid audit defense. Read More ›

If certified by the IRS to have seriously delinquent tax debt, the U.S. State Department can deny passport applications or revoke currently active passports. Read More ›

Full Audit Representation through an Audit Defense Membership, is included at no additional cost. Other tax experts charge roughly $150/hour for representation. Read More ›

The most likely answer for most people would be no, as the general rule is that you cannot deduct the cost of the gym membership. However, there are exceptions. Read More ›

With Full Audit Representation, also known as Audit Defense, a Tax Professional will defend your tax return through the entire audit process if you are audited. Read More ›

Generally, amending an already filed tax return will not extend the time the IRS has to audit the return, which is normally three years. Read More ›

The good news is that you can deduct car insurance from income when preparing your taxes – but the bad news is that you must first meet certain conditions. Read More ›

Even if you cannot deduct your unreimbursed business expenses for your federal return, you may still be able to deduct them for your state return. Read More ›

If the taxpayer has costs for after school care of a qualifying dependent, those costs may provide some tax benefits. Let's explore these tax benefits. Read More ›

With excellent customer service and well-trained tax professionals, TaxAudit is set up to be the best tax debt relief program in the industry. Here's why: Read More ›

Sales tax on a car or automobile purchase might be deductible. It depends on the taxpayer’s circumstances. Generally, the following conditions must all be met. Read More ›

The IRS generally has three years from the date the returns were filed to audit. However, in certain circumstances a return can be audited within six years. Read More ›

Just like there are hundreds of poses in yoga, the tax law is not so simple - and there are subtle variations that determine whether the answer is yes or no. Read More ›

Yes, under certain conditions, health insurance premiums are tax-deductible. Generally, the health insurance premiums can be deducted in one of two ways. Read More ›

On the IRS’s website is a list of Audit Technique Guides (or ATGs) that IRS examiners use as a roadmap when auditing various types of income tax returns. Read More ›

Simply stated, child support is not deductible. However, it is worth noting that identifying child support payments may not be so simple. Read More ›

Real estate closing costs can be pesky things. And since you are paying for them, can you at least deduct them from your taxes? Read More ›

Tax deductions and credits serve the same purpose − to reduce the amount of a taxpayer's tax owed. The way that each serves this purpose is different. Read More ›

In 2019 self-employed taxpayers can deduct their car expenses at the standard rate of 54.5 cents per mile driven for business. However, most employees cannot. Read More ›

Millions of individuals and business owners in America currently have unpaid IRS tax liabilities. Here are a few items to consider for tax debt relief options. Read More ›

You can call the IRS to see if your refund has been flagged for garnishment. Then you can reach out to set up a payment plan − if warranted. Read More ›

Yes, kids may have to pay taxes. No matter a person's age, if they have income that exceed certain IRS thresholds, the income should be reported. Read More ›

In regard to the personal home mortgage interest deduction on the Schedule A, the answer is yes, but only if certain criteria are met. Read More ›

One way to offset the rising costs of health care is by claiming an itemized deduction for qualified medical expenses paid during the year on your income taxes. Read More ›

The PMI deduction was not permanent. This expiration date was extended twice, eventually to 12/31/17, and any PMI paid after that date is not deductible. Read More ›

If you paid someone to care for your child so that you could work or look for work, you may be able to take the credit for child and dependent care expenses. Read More ›

The fact is that there is no standard answer to how long it will take for the IRS to finish up your audit and tell you what, if anything, you owe. Read More ›

Audit defense is a service offered through TaxAudit to support our members in the event that their state or federal tax return is selected for review or audit. Read More ›

Responding to an IRS audit is not the easiest thing to do. Surviving an audit is much easier with professional representation. Read More ›

The IRS declared that any cryptocurrency with an equivalent cash value is to be treated as property for tax purposes, and transactions are therefore taxable. Read More ›

This seems a simple question, and it has a simple answer, which is probably. First, all the usual requirements of deducting mortgage interest must be met. Read More ›

Prescription eyeglasses for correcting your vision are deductible as a medical expense, but you may not be able to deduct them based on other factors. Read More ›

Generally, the IRS has three years form the date the return is filed to conduct an audit. However, there are exceptions to this three-year rule. Read More ›

If you paid off a prior year state or local tax obligation to your state, you can include these payments as a state tax deduction, subject to the $10,000 cap. Read More ›

Most taxpayers are familiar with the terms standard deduction and itemized deductions, but many are unaware of the differences between the two. Read More ›

The moving expenses deduction was eliminated for all tax years from 2018 through to 2025 for all taxpayers except those who are members of the Armed Forces. Read More ›

Yes! Losses on bitcoin and other virtual currencies are deductible but be aware that in an audit the IRS can and will disallow any improperly claimed losses. Read More ›

Besides official IRS examinations, the IRS also conducts other types of tax reviews that are not classified as official audits, and these are far more common. Read More ›

Non-refundable credits can reduce your tax liability to zero. Refundable credits can give you money back if the amount of the credit is more than you owe. Read More ›

When it comes to the deductibility of business expenses the answer is likely to be “Yes, No, Maybe So, or Not Now.” Here are a few examples to consider. Read More ›

401k loans aren't reported on your federal tax return unless you default on them. Then it becomes a distribution and subject to the rules of early withdrawal. Read More ›

If you need to amend your federal tax return, this is done on Form 1040X. Here are some dos and don'ts when filing an amended tax return. Read More ›

Yes, you can deduct student loan interest on your tax return if you meet the specific requirements to claim this deduction. The amount you can claim will vary. Read More ›

Before signing on the dotted line, it’s important to understand the potential tax, liability, and equity issues of transferring your house deed to your child. Read More ›

Inmates are responsible for filing taxes. While you can certainly help your boyfriend file his taxes, you can’t sign and submit the return on his behalf. Read More ›

As part of the tax reform laws, the home office deduction was eliminated for all tax years from 2018 through to 2025 for taxpayers who are employees. Read More ›

The fact is that running your own business increases your chances of being audited by the IRS or your state tax agency. Read More ›

A Notice of Deficiency (aka Statutory Notice of Deficiency, Stat Notice, 90-day letter) is the last letter the IRS sends before making its assessment of tax due Read More ›

Life insurance premiums are generally not deductible on your tax return. However, there are few exceptions, such as life insurance premiums paid by a business. Read More ›

Some people can, and some people can’t. It depends on the date your divorce was finalized whether you fall under the new TCJA tax law. Read More ›

The IRS’s  “Where’s My Refund” app should be your first your first destination to find out the status of your refund. Read More ›

A bonus is considered a supplemental wage payment and is therefore subject to slightly different withholding guidelines under federal rules.   Read More ›

Choosing the right tax preparer is serious. Picking the wrong tax professional may have a severe impact on the health of your finances. So choose wisely! Read More ›

The first thing to do is to check every name and Social Security number listed on the return with what is listed on their Social Security cards. Read More ›

Not all taxpayers are required to file a federal income tax return. Determining if you have a filing requirement starts by evaluating your gross income. Read More ›

While increasing allowances leaves you with more available funds throughout the year, it will have a rippling effect and your tax refund will decrease. Read More ›

Returns are being processed, and refunds are being issued. Things seem back to normal. Read More ›

If you are facing an unexpected tax bill, here are some things to keep in mind. The IRS offers multiple payment options. Read More ›

Below is a list of misconceptions and examples of misinformation taxpayers may encounter during the upcoming tax season. Read More ›

IRS Commissioner Chuck Rettig made it clear that the agency would be processing returns and providing refunds as scheduled, despite the government shutdown. Read More ›

Here is a list of some of the taxpayers who will generally benefit from the new tax law. Read More ›

When sitting down to prepare taxes, password security may be the last thing on our minds. But realistically, it should be one of the first. Read More ›

Many people will likely owe extra money as a result of inadequate withholding because the new withholding tables were not accurate. Read More ›

Taking these few steps today will save you time and hassle come time to file your 2018 tax returns in 2019. Read More ›

Deductions for expenses considered to be entertainment, amusement or recreation have basically been eliminated except for the deductibility of business meals. Read More ›

TCJA (The Tax Cuts and Jobs Act). Not since the Tax Reform Act of 1986 has there been a more sweeping reform of the tax code. Read More ›

When it comes to taxes, there is no shortage of situations to prepare for. One of the most overlooked areas relates to natural disasters. Read More ›

Divorces finalized after 1/1/19 no longer required the spouse receiving alimony to report the income, and in turn, did away with the deduction for the payer.   Read More ›

The Tax Cuts and Job Act presents many substantial changes to filing requirements; however, the reporting of healthcare coverage remains consistent.  Read More ›

So, what happens if you miss an Installment Agreement payment and/or can no longer make the agreed upon payments? Read More ›

Taxpayers who filed for an extension to file their 2017 tax returns should keep in mind that the extension deadline is October 15th, 2018. Read More ›

Of all the types of Installment Agreement requests, Streamlined Installment Agreements are the most varied and provide a bit of flexibility for the taxpayer. Read More ›

The Tax Cuts and Job Act of 2017 introduces some perks for small business owners that you won't want to miss. Read More ›

You can reduce your risk of falling victim to scammer's schemes by developing a basic understanding of what the IRS can and cannot do. Read More ›

In order to avoid a failure-to-pay penalty, it’s important to file your tax return by the filing deadline − even if you can’t pay what you owe in full. Read More ›

For the American Opportunity Credit, a student is required to be in pursuit of a degree or recognized education credential and be enrolled at least half-time Read More ›

When more than one person wants to claim a child on their tax return, sorting it out becomes complicated. Not only are there five tests to meet for a child... Read More ›

Lottery earnings are generally reported on Form W-2G, taxed as ordinary income, and expected to be reported as “other income” on the federal tax return. Read More ›

This may seem like a strange question, but with over 1.1 billion dollars of unclaimed money at stake, it's a question worth asking. Read More ›

​"Unreal audits" often require the same verification principles as traditional audits and incite the same level of discomfort as a real examination. Read More ›

This blog post discusses the rules and fees regarding Guaranteed Installment Agreements for taxpayers whose tax debt is $10,000 or less. Read More ›

The new bill lowers some current tax rates, which changes the income thresholds at which the rates apply. Below is a comparison chart outlining the differences. Read More ›

Sometimes it only takes six little letters to strike fear in the bravest of taxpayers: IRS IOU (technically, it's not an IOU, but rather a bill). Read More ›

With the holiday season upon us, fake charities are on the rise. Below are some factors to take into consideration before making a donation. Read More ›

If you are in a domestic abuse type situation, it is important to understand your rights as a taxpayer so that you can safeguard your finances for the future. Read More ›

The IRS is searching for volunteers to lend a helping hand and to share some wisdom in their communities. Read More ›