Underpaid Taxes – What To Do

penalty notice stamped on paper

If you are like most Americans, you may get a little creative in your efforts to reduce your tax obligations and maximize the percentage of your annual income that stays in your accounts. Unfortunately, if you underpay your taxes because you get a little too aggressive with your attempt to avoid taxes, you may receive a notice of deficiency from…

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Are you a small business owner who can’t afford your tax bill?

young woman cannot afford tax bills

Federal taxes are due on April 17 this year, but those extra two days won’t help small business owners fix a looming tax bill. If you haven’t set aside enough to pay your business’s income taxes, what can you do? Don’t panic. Realize that you’re not the first business owner to make this mistake. There are reliable ways of dealing…

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Delinquent taxes could affect your ability to travel

US travel documents and map

Tax debts can affect more than just your finances—they can also affect your ability to travel. If you have outstanding tax payments, you may find that they can have a significant effect on your passport. The IRS has released a new notice that details how your tax debts may impede your future travels. The IRS and State Department have recently…

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Owe the IRS? Here are a few things you should know

Notepad with sign Owe Taxes on a wooden background.

Owe back taxes to the IRS? You may feel as if the sword of Damocles is constantly hanging over your head. If you have a delinquent tax return, you are eventually going to have to face it down and pay the required amount. The Internal Revenue Service can be an intimidating entity, but you are not powerless against it. When…

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Can interest on federal tax debt be reduced?

Closeup of a check to IRS for All My Money.

There are many reasons why leaving a federal tax debt unaddressed for a long period of time can be very problematic for a taxpayer. One is that unpaid federal tax debts gather interest. This interest generally gathers daily. It applies to the underlying debt and the penalties and past interest connected to such debt. One thing a person who has…

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Do Americans hate taxes?

american flag overlaid on american currency

Taxes can put burdens on a person. This is among the things that might lead some to assume that Americans, generally, hate taxes. However, data and research paint a different picture on how Americans view taxes. For one, it appears that a large majority of Americans see paying taxes as a key part of their civic responsibility, particularly when they…

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Are IRS-hired private debt collectors crossing the line?

Handheld Magnifying glass inspects paper documents

What might be worse than having the Internal Revenue Service come after you over a tax debt? Having a party other than the IRS come after you over such a debt, suggests a recent letter issued by four U.S. senators. There are certain individuals that could end up dealing with private debt collectors in connection to a federal tax debt.…

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Analysis looks at state income taxes and pro sports team competitiveness

State and local income tax written in a note

Might state income taxes impact how competitive a state’s sports teams are? A recent informal analysis by an economist looked into this issue. The economist compared the state income tax rates and winning percentages of teams in the National Football League, the National Basketball Association, Major League Baseball and the National Hockey League. In making these comparisons, the economist took…

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How does Missouri’s tax rate compare to other states?

State and local income tax written in a note

In addition to their federal tax liability, another thing that can have major financial implications for a person is what kind of state and local tax liability they have. States vary considerably in what level of taxes they place on their residents. A recent WalletHub report compared the tax rates of the different states. The study looked at the state…

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The upcoming credit report change and tax liens

IRS Building in Washington

Among the things an unpaid tax debt can expose a person to are tax liens. A tax lien can have many impacts on a taxpayer, including credit ramifications. Tax liens can show up on a person’s credit report, potentially significantly harming their credit score. As our readers may have heard, some upcoming changes were recently announced regarding what the three…

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