If your Offer in Compromise (OIC) was denied, you might feel like the IRS just closed the door on your best shot at resolving your tax debt for less than you owe. But here’s the good news: a denial doesn’t always mean it’s over. You can reapply for an OIC, and in some cases, you […]
Do Back Taxes Affect Credit Scores?
When managing personal finances, understanding the impact of back taxes on your credit score is crucial. Many people may wonder whether owing money to the IRS or a state tax agency could damage their credit. After all, credit scores play a pivotal role in securing loans, renting an apartment, buying a home, or even landing […]
Does the IRS Really Show Up at Your Door? What Field Visits Are (and Aren’t)
If you’re a taxpayer, few things sound more terrifying than hearing a knock at your door, only to find someone claiming to be from the IRS. But does the IRS really show up at your door? In recent years, the Internal Revenue Service has changed its procedures to reduce confusion and increase taxpayer safety. That […]
What You Need to Know About State Tax Audits
We often discuss IRS tax audits, but you can just as easily be audited by your state. Like an IRS audit, state tax audits can be stressful and intimidating for taxpayers. But what triggers a state tax audit? Is it less severe than an IRS audit? Would a state tax audit result in an automatic […]
How the IRS Calculates Interest on Tax Debt
Understanding how the IRS calculates interest on tax debt can help you avoid financial surprises and make better decisions if you owe money to the government. Unlike penalties, IRS interest compounds daily and is tied to market-based rates that adjust quarterly. This means your balance can grow faster than you expect, especially if you wait […]
Can You Get a Car Loan With IRS Debt or a Tax Lien?
If you’re struggling with IRS debt or have a federal tax lien on your record, you may be wondering how it will affect your ability to finance a vehicle. The short answer? It’s still possible to get a car loan. However, it won’t be as straightforward. Lenders take a close look at your creditworthiness, and […]