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 […]
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 […]
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 […]
Gross Income vs. Net Income
Understanding the differences between gross income and net income is essential for managing personal finances and comprehending tax obligations. Both terms are instrumental when it comes to earnings. However, they do serve different purposes and are used in various financial contexts. This article explores what gross income and net income entail, how to calculate them, […]
What is an IRS Appeal?
Dealing with the IRS can be tough, and disputes with them can add significant stress to taxpayers. However, the IRS Appeals process offers a structured pathway for resolving disagreements without taking it to court. Here are the essentials of IRS Appeals, including its purpose, the steps involved, and how taxpayers can effectively navigate this process. […]
Optima Newsletter – July 2024
How IRS Installment Agreements Work When most people first examine tax relief options, they might have their hopes set on an offer in compromise – or their tax debt settled for less than what they owe. Unfortunately, OICs are more often denied by the IRS than they are accepted. When tax debt becomes too much […]
IRS Interest Rates Remain the Same for Q3 of 2024
As we officially move into the third quarter of 2024, the IRS has announced that interest rates will remain unchanged. This decision continues the trend of stability in interest rates, providing predictability for taxpayers and financial planners alike. Here’s a breakdown of the recent IRS announcement. Current Interest Rates For the third quarter of 2024, […]
IRS Form 1099-LTC Explained
As the landscape of health care and financial planning evolves, it becomes increasingly crucial to understand the various tax forms that can impact both. One such form is the IRS Form 1099-LTC. This article aims to provide a comprehensive overview of what Form 1099-LTC is, its purpose, and how it affects taxpayers. What is IRS […]