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Optima Newsletter-December

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10 Warning Signs of Tax Identity Theft You Shouldn’t Ignore

Tax identity theft is one of the fastest-growing forms of fraud, and most victims don’t realize anything is wrong until the IRS rejects their tax return or sends a notice about income they never earned. Because scammers often strike early in the filing season, your best defense is being able to spot the early signs of tax identity theft before major damage occurs. This in-depth guide breaks down the most common warning signs, what criminals do with stolen tax information, and the steps you should take immediately if you think your tax identity has been compromised. 

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Stay Ahead of the IRS in 2026: Estimated Taxes, Recordkeeping, and New Child Account Rules

Looking to finish 2025 strong and stay on track for 2026? CEO David King and Chief Tax Officer & Lead Tax Attorney Philip Hwang share essential end-of-year tax tips, including how to manage estimated payments, keep accurate records, avoid penalties, and navigate potential IRS enforcement like levies.

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Why Was My Offer in Compromise Rejected? 

Facing tax debt can be overwhelming, and the IRS offers several programs to help taxpayers settle their liabilities. One of the most effective tools is an Offer in Compromise (OIC), a legal agreement that allows taxpayers to pay less than the full amount owed. But not every OIC gets accepted. If your offer in compromise was rejected, it’s crucial to understand why and what steps you can take next. 

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Can You Use Your 401(k) to Pay Off Tax Debt Without Penalty? 

Owing the IRS can create intense financial pressure. Notices, levies, and wage garnishments can make even disciplined taxpayers consider drastic measures. One question that often comes up is “can I use my 401(k) to pay off tax debt?” Technically, yes, you can access your 401(k) funds, but doing so without triggering penalties and additional taxes is far more complicated.

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