Owing the IRS can be one of the most stressful situations a taxpayer can face. Recent data shows that American taxpayers owed over $316 billion in back taxes, penalties, and interest as of the end of 2022. Much of this debt can be attributed to late filing, mathematical errors, and underreported income. Whatever the reason […] The post How Tax Relief Works appeared first on Optima Tax Relief ..read more

Failing to pay your state taxes can lead to a range of consequences, depending on the state you live in and how long the debt remains unpaid. While many are familiar with the penalties for not paying federal taxes, state tax authorities also have enforcement mechanisms to ensure individuals meet their tax obligations. Here’s a […] The post What Happens If I Don’t Pay State Taxes?  appeared first on Optima Tax Relief ..read more

Today, Optima Tax Relief Lead Tax Attorney, Phil, discusses the October tax extension deadline, including his top 3 things to keep in mind.   It’s Never Too Late to File  This year’s tax extension deadline falls on Tuesday, October 15th. If you haven’t got around to filing, remember it’s never too late. The failure to […] The post Ask Phil: Tax Extension Deadline: 3 Things to Know  appeared first on Optima Tax Relief ..read more

When taxpayers struggle with large amounts of tax debt, an Offer in Compromise (OIC) can offer a much-needed lifeline. This program, administered by the IRS, allows taxpayers to settle their tax debt for less than the full amount they owe. But a common question arises: Is canceled debt through an OIC taxable income? The simple […] The post Is Debt Canceled Through an OIC Taxable?  appeared first on Optima Tax Relief ..read more

The IRS uses a variety of letters to communicate with taxpayers about their tax obligations. One such letter is IRS Letter 3219N. This letter, often referred to as a Notice of Deficiency, informs taxpayers that the IRS has made adjustments to their tax return. These adjustments resulted in additional taxes owed. If you receive this […] The post What is IRS Letter 3219N?  appeared first on Optima Tax Relief ..read more

A cafeteria plan, also known as a Section 125 plan, is an employee benefit program that allows workers to choose from a variety of pre-tax benefit options. The name comes from the idea of a “cafeteria” where you can pick and choose what suits you best. They offer flexibility in creating a benefits package tailored […] The post What is a Cafeteria Plan?  appeared first on Optima Tax Relief ..read more

Buying a house is an exciting milestone in life, representing stability, investment, and the fulfillment of a dream. However, for individuals who owe back taxes, the path to homeownership can seem uncertain. It’s essential to understand the implications and challenges associated with buying a house while having outstanding tax debt. In this article, we will […] The post Can I Buy a House if I Owe Back Taxes? appeared first on Optima Tax Relief ..read more

Filing your tax return late, or not filing at all, can result in IRS penalties and interest in addition to your unpaid tax burden. CEO David King and Lead Tax Attorney Philip Hwang provide helpful insight on important tax deadlines you should know about – and how you can resolve your tax liability with the […] The post What if I Miss a Tax Deadline? IRS Penalties and Interest? appeared first on Optima Tax Relief ..read more

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 […] The post How are Partnerships Taxed?  appeared first on Optima Tax Relief ..read more

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 […] The post How Worker Classification Affects Taxes  appeared first on Optima Tax Relief ..read more