Divorce often accompanies financial complications, and one of the most overlooked but critical issues is back taxes. Many divorcing couples are surprised to learn how complex and persistent IRS debt can be, especially when it’s tied to years of joint tax filings. The question of who pays what isn’t always as simple as looking at […]
What You Need to Know About Underpayment of Tax Penalties
Taxes are an essential part of a functioning society, providing the government with the necessary funds to provide public services and support various programs. However, when it comes to paying taxes, many individuals and businesses may find themselves making mistakes or underestimating their obligations. This can lead to tax underpayment, a situation that often incurs […]
How Long Can My State Collect Back Taxes?
Owing back taxes is never a pleasant situation, but it’s even more stressful when you’re unsure how long the state has to collect those taxes. While the IRS has fairly standardized time limits, the rules for state-level tax collection vary widely—and in some cases, the clock might never stop ticking. Understanding how long your state […]
State Tax Liens vs. IRS Tax Liens: What’s the Difference?
Understanding tax liens is essential for anyone who owes taxes, whether to the federal government or a state taxing authority. A lien can have serious implications for your finances and even your ability to sell or refinance property. While the term “tax lien” is often used broadly, not all tax liens are the same. There […]
When Does the IRS Pursue Criminal Charges?
Tax evasion and tax fraud are federal crimes. Both involve the willful attempt to either evade the assessment or the payment of taxes. But at what point does the IRS pursue criminal charges for these actions? What consequences are included in the criminal charges? How does one prevent these charges from being brought upon them? […]
How to Spot a Fake IRS Letter or Phone Call
Each year, thousands of taxpayers fall victim to scams impersonating the IRS. These scams come in the form of letters, phone calls, emails, and even text messages, and they’re designed to exploit fear and confusion, especially during tax season. Knowing how the IRS actually communicates with taxpayers is your best defense against fraud. This guide […]