Social Security benefits provide a crucial lifeline to millions of Americans, especially retirees and disabled individuals. Owing back taxes does not prevent you from applying for or receiving these benefits. However, once payments begin, the IRS has the legal authority to seize up to 15% of your monthly Social Security retirement. They can also levy […]
What You Need to Know About IRS Bank Levies
When dealing with unpaid taxes, one of the most significant and immediate consequences can be an IRS bank levy. This powerful enforcement action allows the IRS to legally seize funds directly from your bank account to satisfy outstanding tax debts. Understanding how an IRS bank levy works, the accounts it can affect, your rights, and […]
Can You Reapply for an Offer in Compromise After It’s Denied?
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 […]