The IRS plays a critical role in maintaining the U.S. tax system, collecting trillions of dollars in revenue and enforcing tax laws. In recent years, the agency has gone through significant changes. After a period of revitalization under the Biden administration, the Trump administration is now pushing for major reforms that are reshaping how the […]
How Inherited Property is Taxed: Capital Gains & Step-Up in Basis Explained
Inheriting property can be a financial reward, but it can also come with confusing tax implications. If you’ve recently inherited a home, land, or another piece of real estate, you may be wondering: How is inherited property taxed? The good news is that while you don’t pay income tax simply for inheriting, you might face […]
Top 5 Tips to Avoid an IRS Audit in 2025
In 2025, the IRS is facing a shifting landscape. Although enforcement funding surged in 2022, recent federal budget negotiations, specifically the Department of Government Efficiency (DOGE) Act cuts, have reduced that long-term funding outlook. But don’t let that fool you into thinking audits are going away. Instead of scaling back, the IRS is getting more […]
Optima Tax Relief Rallies Employees to Provide Over One Ton of Assistance During Annual Donation Drive
Company-wide effort delivers over one ton of essential goods to local nonprofits serving Orange County’s most vulnerable Optima Tax Relief proudly concluded its annual community donation drive on June 11th and 12th, reaffirming the company’s commitment to serving not only its clients but also the greater community. The two-day event, held from 8:30 a.m. to 3:30 […]
Can You Deduct Therapy? A Guide to Mental Health and Medical Tax Deductions
Understanding how the IRS treats mental health expenses is essential if you’re trying to reduce your tax bill while investing in your well-being. With therapy costs rising and more people prioritizing mental health, it’s a fair question to ask: Can you deduct therapy? The answer is yes, but only under certain conditions. This guide explains […]
Can the IRS Take My 401(k)?
Owing back taxes is a stressful situation for many Americans. With it comes fear over what the IRS can do to collect. One common concern is whether your hard-earned retirement savings, specifically your 401(k), are at risk. The short answer: yes, the IRS can take your 401(k) under certain conditions. But it’s not their first […]
How AI Tools Are Changing Tax Prep and What to Watch Out For
AI tools are revolutionizing tax preparation by automating tedious tasks, improving accuracy, and helping both individuals and professionals file taxes faster. However, these tools still have limits—and taxpayers should understand the risks before relying entirely on artificial intelligence. The Rise of AI in Tax Preparation AI is changing how taxes are prepared by automating data […]
Why Did I Get a Refund from the IRS but Owe My State?
It’s a situation many taxpayers find themselves in every year: they receive a refund from the IRS after filing their federal tax return, only to discover that they owe money to their state. This outcome can be both confusing and frustrating. After all, if you overpaid your taxes to the federal government, how is it […]
Can the IRS Levy a Joint Bank Account?
When it comes to IRS collection efforts, few actions feel more intrusive than a bank account levy. If you share a bank account with a spouse who owes tax debt, it’s only natural to worry: Can the IRS levy a joint bank account? The answer is more complex than a simple yes or no. While […]
Ask Phil: Missed Your Tax Deadline?
Today, Optima Tax Relief’s Chief Tax Officer and Lead Tax Attorney, Phil, shares what to do if you missed the tax deadline and how to avoid making things worse. Step One: Pay What You Can If you missed the deadline but have the funds available, the best thing you can do is pay your tax […]