Category Archives: IRS Problems
Breaking Down the Innocent Spouse Rule
Back in his heyday, left-wing folk singer Pete Seeger didn’t like to know how much money he made, and he certainly didn’t like to know how much income tax he paid. So, his wife, who was also his business manager, covered the completed tax forms with a blank sheet of paper. When he picked… Read More »
FAQs About IRS Installment Agreements
According to the IRS, about 85 percent of Americans voluntarily pay their taxes in full and on time. That figure, although high, creates a tax gap of over $400 billion per year. Recent budget cuts have reduced the size of this federal agency, but it’s still the world’s largest collection agency. Furthermore, it has… Read More »
Bankruptcy and Past-Due State Taxes
Mostly because of its recent and well-chronicled budget problems, the Golden State has one of the highest state income tax burdens in the country. Most of that burden falls on self-employed people. When their incomes drop, they often suspend estimated tax payments. That suspension comes back to haunt them in the spring, when they… Read More »