The Federal Disaster Tax Relief Act is a legislative measure proposed by the U.S. Congress to provide tax relief and assistance to individuals and businesses affected by natural disasters. This Act is part of a broader effort by the federal government to alleviate the financial burden on those impacted by disasters such as hurricanes, wildfires, […]
Ask Phil: What is an OIC Mill?
Today, Optima Tax Relief Lead Tax Attorney, Phil, discusses OIC mills, including what they are and how to avoid being victimized by them. What is an OIC? An Offer in Compromise (OIC) is a program offered by the IRS that allows taxpayers to settle their tax debt for less than the full amount owed. This […]
What Is an IRS Administrative Appeal?
If you’ve been hit with an assessment from the IRS and you disagree with the results, you are entitled to present your case in Tax Court. However, an IRS administrative appeal may produce desirable results without the need to go to court. As a taxpayer, you are entitled to dispute the results of an IRS […]
What Happens if I Default on My IRS Installment Agreement?
Entering into an installment agreement with the IRS can provide taxpayers with a manageable way to pay off their tax liability over time. However, defaulting on an IRS installment agreement can lead to serious consequences. Here, we’ll review the potential repercussions and the steps you can take to mitigate them. What Does it Mean to […]
Can I Amend My Tax Return?
Did you make a mistake on your tax return? Whether it’s to correct errors, claim overlooked deductions, or address changes in filing status, it may be best to amend your tax return. CEO David King and Lead Tax Attorney Philip Hwang provide helpful tips on what important facts you need to know before amending your […]
Am I Responsible for My Spouse’s Back Taxes?
When you marry, you often share many aspects of your life with your spouse: your home, your finances, and perhaps even your dreams. However, what happens when it comes to tax liabilities? Specifically, are you responsible for your spouse’s back taxes? This question can cause significant stress and confusion. To navigate this issue, it is […]
What is the Work Opportunity Tax Credit?
The Work Opportunity Tax Credit (WOTC) is a valuable federal tax credit available to employers who hire individuals from certain targeted groups that have consistently faced significant barriers to employment. Established as part of the Small Business Job Protection Act of 1996, the WOTC aims to incentivize businesses to diversify their workforce and provide job […]
Ask Phil: What is Tax Identity Theft?
Today, Optima Tax Relief Lead Tax Attorney, Phil, talks about tax identity theft, breaking down his top tips on how to avoid being a scam victim. Get an IP PIN An Identity Protection PIN (IP PIN) from the IRS is a six-digit number assigned to eligible taxpayers to help prevent the misuse of their Social […]
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 if unpaid taxes can affect their creditworthiness, especially given how credit scores play a significant role in various financial decisions, from obtaining loans to securing housing. Here’s a comprehensive look at how back taxes interact […]
What is Schedule E?
Taxes are difficult to understand as they are. Adding in the complexities of tax forms can add to the confusion, especially when it comes to reporting rental income and expenses. Schedule E is an essential form for property owners and investors who need to report income and losses from rental real estate, royalties, partnerships, S […]