Tax Q & A – I Currently Can’t Pay the IRS because of an Economic Hardship

In IRS Tax Help by Daniel Friedel

QUESTION:  What happens if I owe the IRS money but after paying my living expenses/bills, I currently can’t afford to pay my tax liability? ANSWER:  Depending on your particular situation, there are several options.  If you are going through a financial hardship, the IRS may be willing to suspend collection activity to allow you the opportunity to get back on …

Tax Q & A – 2010 Filing Deadline

In IRS Tax Help, Tax Planning, Uncategorized by Daniel Friedel

QUESTION:  Did the IRS really change the filing deadline from April 15th to April 18th? ANSWER: Yes! Taxpayers will have until Monday, April 18 to file their 2010 tax returns and pay any tax due because Emancipation Day, a holiday observed in the District of Columbia, falls this year on Friday, April 15.   By law, District of Columbia holidays impact …

Tax Day Countdown Q & A

In IRS Tax Help, Tax Planning by Daniel Friedel

QUESTION: I Know My Tax Return is Due, but I Cannot Pay the Taxes…Should I Still File on Time? ANSWER: YES, YES, and YES! Even though you will not be able to pay the full amount of your taxes when you file your Income Tax Return, you should still file on time to prevent the 5% per month Late Filing …

Common IRS Letters and Notices

In IRS Tax Help by Daniel Friedel

IRS Letter 525: General 30 Day Letter. This is a notice from the IRS informing you of potential mistakes concerning items on your tax return. These errors may be mathematical or clerical errors in preparing your tax return. This letter is accompanied by a report including the computations of their proposed adjustments. If you agree with the proposed adjustments, then …

IRS Audits and Letters…AUGH, what does this mean?!

In IRS Tax Help by Daniel Friedel

If you just received a letter from the IRS, you may be freaking out and envisioning the IRS breaking down your door – swat team in tow – to raid your house for valuables to satisfy your tax debt.  Before you shred the letter in hopes it will magically disappear forever, take a moment to educate yourself on what’s going …