The Internal Revenue Service (IRS) uses various tools to collect back taxes, including liens and levies. If you haven’t paid your tax balance yet, and you haven’t made any arrangements regarding that balance with the IRS, you will likely get a series of notices from the IRS as they try to collect those back taxes. The IRS may start enforcing collection actions that include tax liens and levies. In this post, we will be discussing what tax levies and tax liens in Birmingham, AL, are and how you can avoid them: How Levies Are Issued by the IRS The IRS can issue a levy if there’s a need to take y ..read more

A statute of limitations is a law that specifies the maximum time after an event that a person can take legal action or be punished for a crime. This period is set so that evidence, witness accounts, and other aspects of the incident do not become outdated.  With that said, there is a statute of limitations for IRS collections, but it is important to note that certain conditions and circumstances can alter the terms of this regulation. To make sure you understand how this affects your tax situation, you should speak with an expert on the matter. Timeline of IRS Collection of Due Balance&n ..read more

An IRS tax audit is a process in which the Internal Revenue Service (IRS) reviews the financial records of a taxpayer to verify the accuracy of their tax return. During an audit, the IRS will review records such as receipts, bank statements, and other financial documents during an audit.  If the IRS discovers discrepancies, the taxpayer may be liable for unpaid taxes or penalties. Preparing for an IRS tax audit is vital to ensure that you can present all the necessary documentation to the IRS in a timely and organized manner. Here are five steps you can take to prepare for an IRS tax audi ..read more

When it comes to taxes, no one likes to be audited. An audit can be a time-consuming and often costly process, and it can also be stressful and embarrassing. That’s why it’s important to be aware of the red flags that could trigger an audit from the IRS. To help you avoid any complications, here are five of the most notable red flags that can trigger a tax audit.  1. High Income One of the biggest red flags for the IRS is having a high income. If you make more than $200,000 a year, you’re more likely to be audited than someone who earns less. This is because the IRS is more likely to beli ..read more

Payroll management is a cost-saving option for small business owners. Although processing payroll might seem like a straightforward process, there are a lot of potential risks. Employee payroll procedures can be challenging and time-consuming.  As business owners handle shifting payroll laws and tax regulations, staff turnover, and shifting consumer demands in addition to the many other duties of running a business, there is a risk of making payroll errors and having payroll discrepancies that can result in violations and fines that may be detrimental to a small business. Read on to learn ..read more

Wage garnishment can be an intimidating process for both employers and employees, and it is important for both parties to understand the legal requirements and implications of wage garnishment.  To help you out, here’s everything you need to know about wage garnishment. What Is Wage Garnishment?  Wage garnishment is a legal process by which a portion of an individual’s wages are withheld from their paycheck and sent directly to the creditor to pay off a debt. It is a common form of debt collection in the United States and can be used for a variety of debts, including child support, u ..read more

Small businesses are often faced with a variety of payroll tax problems. Payroll taxes are often one of the most complicated and confusing areas of taxation for small businesses. Small business owners should be mindful of the potential issues that can arise regarding payroll taxes and how to manage them best. Here are seven payroll tax problems that small businesses commonly face and how to perform a tax resolution immediately. 1. Unfamiliarity With Tax Laws Small business owners must understand payroll tax laws, regulations, and filing requirements. Please properly understand these laws to av ..read more

Tax season can be a difficult time for businesses, especially for small businesses that may not have the resources to do thorough tax planning. And, if one does not know how to go about handling their taxes properly, not only may they end up paying more tax than they need to, but they can also miss out on several ways to save on it. Plus, any mistakes made with taxes can lead to financial consequences, which is never a fun thing to deal with as a business. Thankfully, there are several ways to reduce your business’s tax liability. By taking advantage of certain tax incentives and deductions, y ..read more

Tax liens are a common occurrence for many taxpayers. It can be a hassle for taxpayers, as they can prevent them from selling or refinancing a property until the lien is paid off. Fortunately, there are ways to prevent a tax lien from being placed on your property, as well as ways to deal with an existing lien. What Is a Tax Lien Tax liens are a type of lien imposed by the government on a property due to unpaid taxes. When a tax lien is placed on a property, the owner of the property is not allowed to sell, borrow against, or transfer the property until the taxes have been paid off in full. If ..read more

Tax liens are a common problem for taxpayers, but many people don’t understand what they are or how they work.   When a taxpayer doesn’t pay their taxes, the IRS or another taxing authority may legally claim ownership of the taxpayer’s property as a tax lien. The lien entitles the government to seize and sell the assets to pay off the debt. Tax liens can significantly harm a person’s financial condition by limiting their access to credit and other financial services. For instance, it might be challenging for someone to get approved for loans or mortgages if they have a tax lien on th ..read more