10 Warning Signs of Tax Identity Theft You Shouldn’t Ignore Tax identity theft is one of the fastest-growing forms of fraud, and most victims don’t realize anything is wrong until the IRS rejects their tax return or sends a notice about income they never earned. Because scammers often strike early in the filing season, your […]
What is IRS Form 1040?
IRS Form 1040 is the standard U.S. individual income tax return used by taxpayers to report income, claim credits and deductions, and calculate their tax liability or refund. It is the primary document the Internal Revenue Service (IRS) uses to determine whether a taxpayer owes taxes or qualifies for a refund. For most taxpayers, whether you are […]
What is the Foreign Earned Income Exclusion?
The Foreign Earned Income Exclusion (FEIE) is a provision in the U.S. tax code that allows eligible taxpayers to exclude a portion of their income earned abroad from U.S. taxation. This exclusion is particularly beneficial for Americans working and living overseas, as it helps reduce the potential burden of double taxation. Below, we explore how […]
Ask Phil: Can I Skip Paying My Taxes This Year?
Today, Optima Tax Relief’s Chief Tax Officer and Lead Tax Attorney, Phil, answers a common Reddit question: “Can I skip paying my taxes this year?” Technically, paying your taxes is a completely voluntary act. However, skipping your taxes is never a good idea. Penalty and Interest Risks The IRS can assess penalties for both failing to file your tax return and failing to pay taxes owed by the […]
Tax Deductions for Small Businesses
Small businesses are the backbone of any economy, and entrepreneurs often face numerous challenges in managing their finances. One area where small business owners can find relief is through strategic tax planning and taking advantage of available tax deductions. These deductions can significantly reduce taxable income and free up capital for reinvestment or expansion. In this guide, we’ll explore the most […]
Why Was My Offer in Compromise Rejected?
Facing tax debt can be overwhelming, and the IRS offers several programs to help taxpayers settle their liabilities. One of the most effective tools is an Offer in Compromise (OIC), a legal agreement that allows taxpayers to pay less than the full amount owed. But not every OIC gets accepted. If your offer in compromise was rejected, it’s crucial to […]
How to File Back Taxes with Missing W-2s or 1099s
Filing back taxes can already be stressful but doing it when you’re missing W-2s or 1099s adds another layer of complexity. The IRS still requires an accurate return even if documents are late, lost, or never provided. Fortunately, there is a clear process to follow. This guide explains what to do step-by-step, how to request missing forms, what your filing options are, and […]
What is a Section 179 Deduction?
When it comes to running a business, one of the key goals is to minimize expenses and maximize profits. One often overlooked avenue for achieving this is by taking advantage of tax deductions. Section 179 of the Internal Revenue Code offers a powerful tool for business owners to significantly reduce their tax liability while investing […]
IRS Revenue Officer vs Revenue Agent: What’s the Difference?
The IRS plays a critical role in ensuring that taxpayers comply with U.S. tax laws. Within the IRS, various professionals are tasked with different responsibilities, including revenue officers and revenue agents. While these roles may sound similar, they have distinct functions and purposes within the IRS. Understanding the difference between an IRS revenue officer and […]
What is Audit Reconsideration?
When the IRS completes an audit and assesses additional tax, penalties, or interest, many taxpayers feel trapped by the results, especially if they missed deadlines or didn’t have the documents needed during the audit. Fortunately, the IRS offers a remedy called audit reconsideration, which allows taxpayers to challenge the outcome of a completed audit without going through Appeals or Tax […]