Notice CP14 is among the most common tax notices you can receive from the government. While it is not a last warning letter from the Internal Revenue Service (IRS), the letter offers critical information about your outstanding taxes and what you can do to resolve them. Sometimes, you may receive incorrect information, so reviewing the document and taking action is essential. If this is your first time receiving an IRS CP14 notice, this guide will explain in detail what this notice is, the different actions you can take after receiving it and what to do if the IRS made a mistake. What Is a CP1 ..read more

Staying compliant with the Internal Revenue Service (IRS) means paying all your taxes on time. If you delay or fail to pay your taxes, the IRS will take measures to collect the taxes due, including accessing your bank accounts. Before they take these measures, the IRS will send you a CP504 notice. This letter reminds you of your tax balances and informs you of the actions the IRS will take. This guide explores more about IRS letter CP504 and how you can respond to it. What Is IRS Notice CP504? The CP504 letter is an IRS final Notice of Intent to Levy. This means you have a balance due, a ..read more

What Is IRS Notice CP2000 and How Should You Respond? Have you received an IRS notice CP2000? Do you want to know what it means and how to respond? If yes, then you’ve come to the right place. The Internal Revenue Service (IRS) has many ways of determining a taxpayer’s tax liability. A typical example is obtaining information from third parties like employers. If the information received conflicts with the numbers on the IRS file, the IRS may send a notice CP2000. Read on to learn more about this notice and how to respond. What Is IRS Notice CP2000? CP2000 is a notice of underreported in ..read more

When grappling with tax debt, you may be considering multiple scenarios, including the impact of tax on credit scores. Your credit score represents your creditworthiness. In other words, it suggests how likely you are to repay any borrowed money. But how does tax debt affect your credit score? Should you be worried about potential tax liens or levies being placed on your property? Low credit scores could result in challenges in obtaining credit cards, loans and even landing job opportunities. While your credit score and tax debt are indirectly linked, tax debt alone leaves no negative marks o ..read more

Handling tax debt can sometimes feel like a complex matter to resolve. Fortunately, tax resolution specialists can guide you through basic and more complex tax concerns like tax audits, unpaid tax penalties and unfiled tax returns. Tax resolution specialists aim to understand your unique situation, determine an effective solution and communicate with tax authorities on your behalf. They’re essentially the intermediaries between taxpayers and authorities like the Internal Revenue Service (IRS). Enrolled agents (EAs), certified public accountants (CPAs) and tax attorneys are all tax specialists ..read more

Taxes help your government pay for necessities and amenities you may not even consider. For example, taxes generally pay for maintaining infrastructure and running the public school system. Failing to pay taxes is illegal and can have severe consequences for you as an individual or for your business. If you don’t understand how different taxes work or aren’t aware you’re liable for certain taxes, you might not pay your taxes unintentionally. An expert, like BC Tax, can help you understand the ins and outs of taxes. This article covers the differences between sales tax and use tax. Learn their ..read more

  As tax season 2024 approaches, it’s essential to get a head start on the recent tax updates from the IRS to ensure you meet all the correct requirements and, most importantly, minimize your tax bill as much as possible. Since our last tax season, there have been many updates, from adjusted tax brackets and 1099-K changes to increased deductions and retirement plan limit changes. In this guide, we provide all the important adjustments and rules, when to file your taxes and effective tax-saving tips for a successful 2024 tax season. When to File Taxes for 2024 The specific date to file t ..read more

Tax write-offs are a method of reducing your taxable income or increasing the expenses you can subtract from your taxable income. Both individuals and businesses can claim tax write-offs on various expenses. For example, as a small business owner, you need to report your income through a system of revenue and losses or write-offs — the money you spend on specific expenses over the tax year. Those losses reduce your taxable income for the year. Though a tax deduction and tax write-off are the same, some experts may speak of write-offs for businesses and tax deductions for individuals. Either w ..read more

When you are self-employed, you have to play a more active role in paying your taxes since they aren’t withheld automatically. You must ensure you pay the correct taxes in the right amount at the appropriate time. Paying taxes is your responsibility as an employer as part of running your business. Do your research to understand what your responsibilities are. Whether you are already self-employed or still considering it, you must be aware of various tax considerations and obligations. This guide gives you the rundown of all the essential information you need when it comes to filing and paying ..read more

Whether you’re self-employed, a freelancer or a salaried employee, you must pay taxes on your income. When you can’t or don’t pay your taxes, you risk receiving a tax underpayment penalty from the IRS. So, what is an underpayment penalty, and what are your options when you receive one? This guide explores everything you need to know about the underpayment of estimated tax, what you can do about it and how to avoid it in the future. What Happens When You Underpay on Taxes The IRS has a pay-as-you-earn (PAYE) policy, meaning taxpayers should pay their taxes throughout the year as they earn an i ..read more