I was recently appointed a Federal Appeals Officer for the IRS. As such, it would be a conflict of interest to give private advice on tax matters. So I'm shutting the blog down.If you need any tax help please visit the sponsors on this site. They all provide tax relief and many give free consultations.Take care and good luck to all!Attorney Jack Manhire is an 11-year veteran tax attorney who has helped individual, corporate, and government clients save over $127,000,000 in back IRS taxes. ... Read Full Story

WRONG! BUZZZZZZZ! Thanks for playing.Many people don't realize this but when you file for an automatic extension to file your annual Form 1040 with the IRS you only get an extension on the filing of the return. You do not get an extension on paying any tax due. For those who are wondering what IRS form allows you an extension to pay, there is none. There exists no extension to pay program with the IRS.So you filed your extension and didn't pay. Now what?Well, write a check ASAP ... Read Full Story

Tomorrow is April 15th. To every American that means your annual IRS 1040 form is due. A lot of people get refund checks, but not everyone. Some have a balance due and must write the check by tomorrow to avoid late payment fees and IRS enforced collection.But what if you can't pay it? Then what?First, request an Installment Agreement (a pay plan). You can actually attach this request to your tax return and send them in together. The IRS form is Form 9465. If you owe more than $25,00... Read Full Story

Jimmy T. from Philly said he heard that you can get money for turning in someone to the IRS who didn't pay their taxes. Is this true?Yes it is Jimmy. The IRS Compliance and Enforcement Division has its informants just like the law enforcement officers you see on TV. And the IRS does pay them. . . sometimes.Here's how it works:The IRS Whistleblower Office pays money to people who blow the whistle on persons who fail to pay the tax that they owe. If the IRS uses information provided... Read Full Story

Your stimulus payment from last year should not be included as income when you file your 2008 tax return. Most people received the maximum Economic Stimulus Payment in 2008. However, some people may be eligible for a first time credit or for a larger payment than they were eligible for last year. This amount is called a Recovery Rebate Credit . You'll need to have the amount of your Stimulus Payment from last year so you can figure out whether or not you're eligible to receive this cr... Read Full Story

. . .FILE THEM!Yes, it's that simple. Even if you can't pay them you need to file them. Why?1. Because Willful Failure to File a tax return is technically a federal tax crime punishable up to one year in prison and a $25,000 fine for each year not filed.2. And the IRS will not hear word one about any type of resolution to your tax debt if there are any missing returns.So get your records together and go see your friendly neighborhood tax preparer. If you need to file them on your ... Read Full Story

The IRS announced today that taxpayers who buy a new passenger vehicle this year may be entitled to deduct state and local sales and excise taxes paid on the purchase on their 2009 tax returns next year. “For those thinking about buying a new car this year, this deduction may give them a little more drive to make their purchase this year,” said IRS Commissioner Doug Shulman. “This deduction enables taxpayers to buy now and get cash back later on their tax returns.” The deduction is limited t... Read Full Story

The IRS uses many different form letters to correspond with taxpayers. Because these letters need to be "one size fits all" formats to apply to many different situations, they can be hard to read and understand when they are addressing your specific case. Many times you'll read an IRS notice over and over again and still not be sure exactly what's happened or what you should do about it.One such IRS Notice is the one that says they've adjusted or corrected your tax ret... Read Full Story

This blog is primarily about resolving back IRS tax issues, but I've had a few questions about the mysterious AMT (Alternative Minimum Tax) so I thought I'd give you a "101" on it.Actually, I'm going to let someone else give you the 101. The following is an excerpt from an article by Kaye A. Thomas of Fairmark.com. You can read the entire article here.A brief overview of the alternative minimum tax (AMT).The alternative minimum tax (or AMT) is an extra tax some people ... Read Full Story

Alright, I'm giving you a 2fer today since I've been gone so long.Lois M. of Lovonia, MI asked me a great question: "I just lost my job. Wouldn't this be the perfect time to file an Offer in Compromise with the IRS since my income is $0?"I love this question because at first blush you'd think Lois was right. I mean, after all, Offers in Compromise are usually based on your ability to prove a Doubt as to Collectibility with the IRS settlement unit. And that Doubt as... Read Full Story