The short answer to this question is all the information you have. However, if you’re asking yourself this question, you may really be asking whether the information you have is adequate enough to satisfy the IRS. This is a much tougher question to answer.
The decrease in IRS audits over the past few years has many assuming their chances of being audited have also decreased. Although this is true for most taxpayers…it is not the case for those over-estimating expenses or under-reporting income.
Receiving an IRS audit notice is never something you will look forward to but, not all audits are the same. Most people assume that being audited by the IRS means they will have to sit down with an examiner at an IRS office and go through their entire return line by line. This is typically not the case. In fact, you may not even be required to sit down with anyone at all. In this blog we will go over the four different types of audits and what each entails.
One of the most stressful tax related experiences is receiving a notice from the IRS stating that they want to examine your tax return. Now you’ll need to provide reasoning for why your return was prepared the way it was with supporting documentation for the deductions taken and income reported. The biggest question you may ask yourself upon receiving the notice is, “Why me?”
In a typical collection case, under IRC § 6330(a) the IRS is legally required to provide due process before proceeding with seizures, levies, garnishments, etc. However, if you are a federal contractor, the due process rules are far less protective of your rights. Therefore, it is important to address any collection issues as soon as they arise.
Many people rely on their social security benefits as a way to bridge the gap between their retirement income and their monthly expenses. For others their social security may be their only source of income in retirement. Which ever may be the case, if you owe back taxes to the IRS you may be asking yourself the question, can the IRS garnish my social security? In short: Yes.
The last thing you want to hear from your employer is that they have been ordered by the IRS to withhold money from your paycheck. But, what if you’re self-employed? Can the IRS still collect from you? The answer is: ABSOLUTELY. Just because you don’t have someone regularly paying you a paycheck doesn’t mean the IRS won’t find other ways to collect. They can still file a lien against you and your property (making it difficult to sell or almost impossible to refinance) and they can issue a bank levy (draining your account of however much money is in there at the time).
Going through a divorce can be a complicated process. Dividing up assets, going to custody hearings, and arranging a new living situation for yourself is enough to leave anyone emotionally drained. One thing that should not be lost in the shuffle though is what is going to be done about any income tax debt that may have been incurred while you were married.
APPEALS PROCESS FOR INNOCENT SPOUSE RELIEF
