Is there a fee to set up an Installment Agreement with the IRS?
- David Greene
- Comments Off on Is there a fee to set up an Installment Agreement with the IRS?
Yes, there is an application fee for an Installment Agreement. The IRS used to charge a user fee of $43.00 to set up the account for the Installment Agreement. However, several years ago, this fee was increased to $105.00. Unlike…
Does the IRS ever forgive interest and penalties?
- David Greene
- Comments Off on Does the IRS ever forgive interest and penalties?
Many people who owe taxes more than five or six years old find that the interest and penalties are more than the original tax. This is because penalties keep being added for several years. In fact, there are more than…
Can one who withdrew funds from his retirement account in 2020 due to COVID pay the money back without paying taxes?
- David Greene
- Comments Off on Can one who withdrew funds from his retirement account in 2020 due to COVID pay the money back without paying taxes?
Section 2202 of the CARES Act, enacted on March 27, 2020, provided for some special rules for paying back distributions from retirement plans and IRAs if the withdrawal was related to COVID. One new provision is that the amount withdrawn…
What is an “injured spouse” in terms of tax relief?
- David Greene
- Comments Off on What is an “injured spouse” in terms of tax relief?
An injured spouse is a taxpayer who is entitled to recover his refund that was kept by the IRS. Any time a married couple files a joint return and the refund is kept due to only one spouse owing prior…
Here are some tips to help lower next year’s taxes.
- David Greene
- Comments Off on Here are some tips to help lower next year’s taxes.
Here are a few suggestions I can give you: (1) The standard dedction has been raised very high, so most people will benefit more by taking the standard deduction. However, itemizing will stil benefit some taxpayers so, if you decide…
How can I protect my information from Identity Theft?
- David Greene
- Comments Off on How can I protect my information from Identity Theft?
This is a very good question. Here are some tips to help you. (1) If asked to go to a web site, check to see if it is a “spoofed” site, i.e. one that purports to be an official site…
Is a mistake on a tax return criminal?
- David Greene
- Comments Off on Is a mistake on a tax return criminal?
If you make a mistake on your tax return, that is not criminal. However, filing a wilfully fraudulent return is criminal and can land you in jail. Here are some things you do not want to do that, if done,…
Can a spouse change his spouse’s will after he/she dies?
- David Greene
- Comments Off on Can a spouse change his spouse’s will after he/she dies?
First let me remind everyone that each person must have his or her own will. A husband and wife cannot have a joint will. In short, a will cannot be changed or altered by anyone after the maker of the…
What is the “Effective Tax Administration” doctrine?
- David Greene
- Comments Off on What is the “Effective Tax Administration” doctrine?
There are three methods under which an Offer In Compromise is considered. The first two are Doubt as to Collectability and Doubt as to Liability. The third (and newest) method under which you can submit an Offer is Effective Tax…
Is a Durable Power of Attorney important?
- David Greene
- Comments Off on Is a Durable Power of Attorney important?
It is very important! A durable Power of Attorney (POA) is simply legal authorization for someone else to act on one’s behalf. This usually only occurs if the grantor of the POA is incapacitated, but it can be useful in…