Partnerships are a popular business structure for entrepreneurs looking to combine resources, expertise, and share profits. However, the taxation of partnerships can be complex, as the partnership itself isn’t taxed like a corporation. Instead, partnerships are subject to “pass-through” taxation, where the profits and losses pass through to individual partners. This guide explores how partnerships […]
How Worker Classification Affects Taxes
Understanding worker classification is crucial for both employers and workers, as it directly affects tax obligations and benefits. The way a worker is classified—whether as an employee or an independent contractor—determines who is responsible for various tax payments, what deductions are available, and how the worker must report income to the IRS. This article will […]
What To Do If You Receive IRS Notice CP71C
Receiving a notice from the IRS can be unsettling, and if you’ve received IRS Notice CP71C, it’s important to understand what it means and how to respond appropriately. This notice is a reminder from the IRS regarding an outstanding tax debt and offers information about what actions you can take to address the issue. Here’s […]
What is an Enrolled Agent?
We often hear that the tax professionals qualified to represent you before the IRS are CPAs, tax attorneys, and enrolled agents. While the first two roles are more well-known, many are still confused about what exactly an enrolled agent is. An Enrolled Agent (EA) is a federally authorized tax practitioner who has technical expertise in […]
What is the Gift Tax Exclusion?
When it comes to transferring wealth, the gift tax exclusion is a valuable tool for individuals looking to pass on assets without incurring significant tax liabilities. The gift tax is a federal tax on the transfer of money or property from one person to another without receiving something of equal value in return. However, the […]
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 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, how it can be avoided, and the steps to take […]
Optima Tax Relief Named to 2024 Forbes Advisor ‘Best Of’ List for Tax Relief Services
The national tax firm was recognized for outstanding customer service, transparency, and industry leadership Optima Tax Relief is proud to announce that it has been named to the 2024 Forbes Advisor ‘Best Of’ list for Tax Relief Services. This prestigious recognition highlights Optima’s unwavering commitment to providing exceptional tax relief services to individuals and businesses […]
Can The IRS Really Take Everything I Own?
The IRS can seize your assets if you owe back taxes and fail to resolve your tax debt. This includes bank accounts, wages, and even physical property like cars or homes. Optima Tax Relief CEO, David King, and Lead Tax Attorney, Philip Hwang, provide helpful insight on how you can resolve your tax burden and […]
Q3 2024 Estimated Taxes Are Due. Are You Prepared?
As the third quarter of 2024 comes to a close, taxpayers must remember a crucial deadline: Q3 estimated taxes are due. Whether you’re self-employed, an investor, or someone with substantial income not subject to withholding, making timely estimated tax payments is essential to avoid penalties and stay on the good side of the IRS. Here’s […]
Can the IRS Seize Your State Tax Refund?
The IRS, as the federal tax collection agency, has broad powers to collect unpaid taxes. While it can garnish wages, seize assets, and levy bank accounts to satisfy federal tax debts, the question arises: Can the IRS seize your state tax refund to pay off federal tax liabilities? The answer is yes — under the […]