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The Alternative Minimum Tax: What You Should Know
The Alternative Minimum Tax (AMT) is a somewhat controversial tax. This separate tax was designed to ensure that higher income individuals pay their fair share of taxes. However, for many years, this tax was never adjusted for inflation. This meant that, over the...
Fresh Start Initiative Program: What it is and How to Qualify
Tax debt can be incredibly overwhelming. However, if you’re struggling to get out of tax debt, there’s an IRS initiative called the Fresh Start Initiative that may be able to help. But what exactly is the Fresh Start Initiative Program? And how do you know if you...
Identity Theft: What it Is and How to Stop It
Identity theft is a a serious crime that is, unfortunately, all too common. Every year at tax time, identity thieves file fraudulent tax returns in order to steal the tax refunds of innocent taxpayers. So what can you do to make sure this doesn’t happen to you? What...
Protect Yourself From Tax Return Fraud With These Simple Tips
Every year, criminals invent new ways to commit tax return fraud. Fraudsters look for ways to steal the sensitive data of taxpayers, which can help them commit tax-related identity theft. Identity theft can lead to a whole host of problems, including losing your tax...
IRS Sending Warning Letters to More Than 10,000 Taxpayers About Cryptocurrency Reporting
Though cryptocurrency is designed to be a virtual currency, the IRS does not categorize it as a currency. Instead, the IRS categorizes cryptocurrency as property. For federal tax purposes, this means cryptocurrency must be reported just like physical assets or stock...
Income Tax: Fraud vs. Negligence
Millions of Americans make mistakes on their tax returns each year. The IRS estimates that as many as 17% of all taxpayers fail to completely comply with the tax code in one way or another. Sometime, people do this intentionally, which is tax fraud. In many cases,...
What is Tax Evasion and How Big of a Problem Is It?
Most people know that tax evasion is a crime. But do you know what qualifies as tax evasion? And how it can affect you and the government? Our experts at Tax Defense Partners discuss what tax evasion is, how it affects the government, and how it can affect you. What...
Flat Tax vs. Current Tax
Every election season, you’ll hear politicians laying out their plans to make changes to the tax code. One of the most common proposals is some version of a flat tax. But what is a flat tax and how is it different from the current tax? In this post, our experts at Tax...
Do U.S. Citizens Need to Pay Taxes Once They Leave the USA for Good?
If you’ve moved out of the United States and no longer make money in the United States, you may think that you don’t need to pay U.S. taxes. Unfortunately, this isn’t the case. In this post, we’ll explain why U.S. citizens still need to pay taxes once they leave the...
Deducting State and Local Taxes From Your Federal Taxes: How Does It Work?
Did you know that anyone can deduct their state and local taxes from their federal tax return? This deduction is called the state and local tax deduction, or the SALT deduction, and it can be a very valuable deduction. While the SALT deduction was recently capped due...
How Do Taxes Affect the Economy? Long-Term vs. Short-Term
Do you know how taxes affect the economy? The way taxes affect the economy is fairly complicated, so there’s actually no simple explanation for how these two complex systems intertwine. However, most economic experts agree that large changes to the tax code can change...
Top 6 Ways to Arrange a Payment Plan With the IRS
If you owe taxes but can’t pay your full tax liability in a lump sum, there are a number of IRS payment plans that you may qualify for. Entering into one of these IRS payment plans can be enormously beneficial if you’re struggling with back taxes or a...
Tax Deduction vs. Tax Credit: What’s the Difference?
We’ve all heard of tax credits and tax deductions. And we know that tax credits and tax deductions are good things that can save you money come tax time. But have you ever wondered how they work? And if there’s a difference between them? In this post, we’ll take a...
IRS Gives Passes to Underpayment of Federal Taxes
Every year, those who underpay their estimated tax are subject to penalty fees from the IRS. But this year, the number of Americans who underpaid may have dramatically increased, due to the Tax Cuts and Jobs Act and how that has affected withholding figures. Luckily...
Tax Tips for Side Jobs
In 2019’s gig economy, lots of Americans have side hustles. But do you know how to handle your side job income when you file your taxes? Our experts here at Tax Defense Partners give you our top 3 tax tips for side jobs to help you understand how your second job...
Did the GOP Tax Bill Live Up to Its Promises?
April 15th, 2019 marked the end of the first filing season under the new tax code. Now that taxes have been filed, many people are wondering: did the GOP tax bill live up to its promises? Did the tax bill actually give all the benefits Americans were promised? In this...
Do US Dual Citizens Pay Taxes on Income Earned Abroad?
Every country has different rules regarding taxes on income earned abroad. Some require that citizens pay income tax on all the money they earn, regardless of the country they earned that money in. Other countries have tax exemptions for money earned abroad. But where...
Why Doesn’t the IRS Do My Taxes?
The IRS knows how much most taxpayers owe them. So why doesn’t the IRS do your taxes for you? Why do you have to deal with the stress and confusion of doing your own taxes when the IRS could do them for you? Our experts here at Tax Defense Partners took the time to...
Can the IRS Seize Your Income Tax Refund for Debt? Yes, and Here’s Why
Many Americans have found themselves in a uniquely stressful situation: they thought they’d be receiving a tax refund but found out that the IRS would be keeping it instead. So, why would this happen? If you have certain kinds of debt, the IRS may have the option to...
How to Get Rid of Debt for Your Small Business
If you’re a small business owner, getting into debt can be incredibly overwhelming. Whether you find yourself with credit card debt, loan debt, or tax debt, business debt can feel crushing. However, there are many ways you can get a handle on your small business debt....
Innocent Spouse Relief: What You Need to Know
The IRS provides taxpayers with very few options for complete debt forgiveness. One of these options is something called Innocent Spouse Relief, which can be enormously helpful for those who have a partner who got them into tax debt without their knowledge or consent....
Follow These Tips to Help Boost Your Tax-Free Income in Retirement
Have you thought about what kind of taxes you’ll have to pay in retirement? Taxes are something no one looks forward to, but they can be especially burdensome during retirement when your income is fixed. So, it’s important to plan for your future and think about your...
How Should I Deal With Wage Garnishment From the IRS?
The IRS has a number of late-stage actions they can use to recoup back taxes, including wage garnishment, which is when the IRS takes some of your income from your employer before it reaches you. Wage garnishment is extremely stressful to experience. Not only is it a...
When You Should Hire a Tax Attorney
No one wants to have to talk to the IRS but, unfortunately, we sometimes have to. If you’re being audited or need to negotiate with the IRS, you’ll have to communicate with the IRS. The question is: when should you talk to the IRS yourself and when should you hire an...
How Long Should I Keep Receipts for Tax Purposes?
If you’re self-employed or a small business owner, you probably know that you need to keep receipts that are related to your tax return. After all, it’s important to keep these valuable records in case the IRS asks for copies to prove you’re entitled to claim your...
Tax Tips for Freelance Writers
If you’re a freelance writer, the IRS will probably classify you as a small business owner. This means that doing your taxes can be a little trickier, as you’ll need to file your freelance income as self-employment income. However, being self employed means you’re...
Amended Returns: What You Need to Know
Did you know that you can amend a tax return? If you notice that you made an error on a tax return you already filed, you can (and should) amend your return to make sure you don’t run into trouble with the IRS. If you do need to amend your tax return, there are some...
Is Social Security Income Taxable?
A commonly asked question about taxes is whether or not Social Security income is taxable. The short answer is that, unfortunately, yes it is. However, not everyone has to pay taxes on their Social Security income. Whether or not you pay taxes on social security...
Will Your Tax Refund Be Higher or Lower This Year?
The government shutdown ended a few weeks ago, which meant that IRS employees could get back to work for the start of tax season. But even with IRS agents back at work, this tax season may be a complicated one. Both IRS agents and taxpayers are dealing with a brand...
Traveling? Here’s How to Prevent Identity Theft While Traveling
Traveling puts you at greater risk for identity theft, which is something no one wants to deal with. To help keep your sensitive personal information safe on your travels (whether you’re going on a work trip or a vacation), our expert team at Tax Defense Partners put...