What Is the LT11? A taxpayer receives the LT11 after the IRS has sent a progression of increasingly threatening notices. It is the IRS’s declaration that the taxpayer is about to be levied. This could be done by seizing assets, freezing account funds, or garnishing income. The IRS is legally obligated to send the LT11…
What is the LT36? The LT36 is an IRS Notice sent to current and retired Federal employees who have been deemed non-compliant with their tax obligations. According to the notice, there are 525,000 employees that fit this description. Part 2635 in the United States Code of Federal Regulation details standards of ethical conduct for employees…
What is a CP504? The CP504 is a statutory notice that warns the taxpayer that the IRS intends to levy them. It’s a legal requirement that the IRS sends this letter 30 days before a levy action. It’s typically sent via a certified letter. If the IRS levies you and you didn’t receive a CP504,…
When you owe more to tax agencies than you can pay off, settling a tax debt with an Offer in Compromise sounds like a dream come true. Who wouldn’t want the IRS or state tax agencies to agree to reduce their debt? It’s no surprise that every day we speak with people who are hoping…
2023 Tax Credit Updates When it comes to managing your taxes, tax credits can be a powerful tool in reducing your overall tax burden. By qualifying for one or more tax credits, you can lower the amount of taxes you owe or even receive a refund. It’s important to note that in order to claim…
The IRS conducts examinations of certain tax returns in order to ascertain compliance with tax laws. Usually, only a small percentage of tax returns are audited. In 2022, the agency audited 3.8 out of every 1,000 income returns, which is a rate of 0.38%. Even though most taxpayers are unlikely to get audited, it helps…
When it comes to taxes, one thing is certain: income matters. From the money you earn through hard work to the unexpected sources that come your way, understanding what income is taxable is essential. Whether it’s your wages, salaries, royalties, commissions, rent, fees, or tips, these familiar sources of income all fall under the watchful…
Every year, when taxpayers get ready to file their taxes, one of the first things they should do is understand all the ways they can lower their tax bills, such as tax deductions and tax credits. There are widely known tax deductions, such as business travel and vehicle expenses, as well as lesser-known deductions you…
Did you know the IRS has the authority to seize Social Security checks to satisfy outstanding tax liabilities? If you’re facing back tax debt, protecting your Social Security benefits from IRS seizure is a crucial step in tax debt resolution. But don’t panic – the IRS follows a specific process before taking action. Understanding the…
Introduction to IRS Collection Standards Updated information to reflect 2023 IRS standards. Did you know the IRS utilizes Collection Financial Standards to determine the financial capability of a taxpayer? These standards help determine the suitable collection method to recover the tax debt. The Collection Financial Standards are applied to various collection methods, including Installment Agreements,…
