Paying taxes Feed

"Dear IRS, …" — If you have a question about how a tax law or regulation affects your particular set of circumstances, you can ask, in writing, for the Internal Revenue Service to weigh in. But be prepared to pay for the advice and, effective Aug. 15, pay electronically. Taxes are complex. That’s why it’s often wise to get professional help. In some cases, however, even tax pros need some guidance. This is particularly true when taxpayer circumstances are such that the individuals and their advisers feel the need for further interpretation as to how tax laws or administrative rules... Read more →


Undefeated boxing champ Floyd Mayweather Jr. is trying to avoid a knockout from the Internal Revenue Service. Mayweather still owes the federal tax collector a reported $22.s million for his 2015 taxes. That year, Mayweather reportedly earned as much as $230 million for besting Manny Pacquiao in the heavily promoted Fight of the Century. Floyd Mayweather's official weigh-in before his 2015 fight with Manny Pacquiao in Las Vegas. Money earned on that match is at the center of an unpaid tax bill battle Mayweather's waging with the IRS. (Photo courtesy Pixabay via Wikimedia Commons) Rich, but tax cash poor: Mayweather... Read more →


Happy Mother's Day! What a perfect day to talk about tax audits. You don't see the connection? Then you missed the season finale last week of the CBS show "Mom." I'm not really a fan, but it was on in the background as we were fixing dinner. Scene from the May 11 season finale of CBS sitcom "Mom," where the characters portrayed by Anna Faris and Allison Janney consult an attorney, played by Leonard Roberts, about some tax trouble. (Photo courtesy CBS) But as I was chopping veggies I heard "the IRS put a lien on my account." So naturally... Read more →


In an exclusive NBC News interview with Lester Holt, the president mentioned the letter, released today, that discusses what his attorneys say show only tangential connections to Russian money. Click image to watch the full NBC news interview. Still no Donald J. Trump tax returns, but today we got another letter from his lawyers regarding his taxes, specifically whether there was any Russian-sourced income on his filings over the last 10 years. The letter, from partners Sheri Dillon and William Nelson of the Washington, D.C., branch of international law firm Morgan Lewis, was addressed to Trump and "hereby confirm[ed] the... Read more →


If you've waited until now to finish your taxes (or are going to delay until the very last minute on April 18), then your best filing, and paying if you owe, bet is to go electronic. As the Internal Revenue Service has been saying for years, filing and paying your taxes is easier and more accurate than going the old fashioned paper route. In case you haven't made your e-filing and, if needed, e-payment choices yet, here are your options. E-filing choices: Tax e-filing actually covers two things, using software to prepare your 1040 and associated schedules and forms and... Read more →


Every journalist, regardless of his or her beat, follows a time-honored template in crafting stories. Each article should tell readers the who, what, when, where, why and how of the selected topic. Answers to those six questions are perfect for detailing the intricacies of estimated taxes. The first estimated tax payment for the current tax year is due every April on the same day that our annual tax returns must be filed. Yep, that means next Tuesday, April 18. With that tax double due date looming for some, here are the answers to the 5 Ws and 1 H of... Read more →


Tax filing must keep evolving. That's the word from Internal Revenue Service Commissioner John Koskinen, who today made his fourth and final appearance as head of the U.S. tax agency before the National Press Club. IRS Commissioner John Koskinen holds a paper Form 1040 during his speech to the National Press Club in Washington, D.C. Each event attendee got a souvenir form, complete with a personal "thanks for filing" note penned by the commish. That means, Koskinen told the assembled group of media in Washington, D.C., more digital solutions to taxes. And if tax reform can help achieve that, then... Read more →


Sure, you're happy to tell your friends about the online bargains you get, but not so much your state's tax officials. That essentially will happen in Colorado this summer. But it won't be shoppers revealing their internet purchases. It will be the companies that sold them the stuff. Colorado online shoppers oppose the state's new sales tax reporting law because it violates their privacy. And oh yeah, now they'll have to pay more tax. The online purchase info is part of a creative way Colorado lawmakers devised to try to collect the almost $173 million in tax revenue they say... Read more →


If you have an old federal tax debt, you might be getting a call from a private debt collection agency next year. Under provisions of the transportation bill enacted last year, the Internal Revenue Service is once again to turn over some delinquent tax accounts to private debt collectors. That process will begin in 2017. And today, the IRS announced the a private collection agencies, or PCAs, that it has selected to do the job. They are: CBE Group 1309 Technology Parkway Cedar Falls, Iowa 50613 Conserve 200 CrossKeys Office Park Fairport, New York 14450 Performant 333 North Canyons Parkway... Read more →


This post was updated July 12, 2017. Need time to pay off a big tax bill? It's going to cost you more, thanks to Internal Revenue Service installment plan fee hikes — some substantial — that took effect in 2017. The IRS on Aug. 19, 2016, announced the plans to add a couple of new installment plan options and increase existing payment arrangement fees. After a public comment period, the increases took effect Jan. 1, 2017. Some taxpayers could see an 87.5 percent price hike, which would produce a top fee of $225 instead of the previous maximum fee of... Read more →


Last week I signed onto the Electronic Federal Tax Payment System, known in acronym-speak as EFTPS (eff-tips), and authorized our third quarter estimated tax payment to be made by our bank on Sept. 15. Click image to download full 1040-ES package. I've used EFTPS for eight years and although there were some early bumps, I'm pretty happy with the system. A lot of folks, though, are put off by EFTPS. One of the biggest complaints is that it takes some time for the account to be operational. The IRS has speeded up the process, but if you are thinking today... Read more →


The Motor City is getting a lot of attention today. Unfortunately, it's because Detroit has filed for bankruptcy. Detroit, Mich., viewed from Windsor, Ontario, Canada, across the Detroit River; photo by Andrea_44 via Flickr The process is different for a municipality that files bankruptcy than when a company or an individual goes broke. But the bottom line is that all entities have determined that this last-ditch effort is the only way to get their finances back in any kind of workable shape. Taxes obviously are a part of the equation. In Detroit's case, the falling individual and corporate population has... Read more →


If you're still working on your tax return, chances are you owe Uncle Sam. Your payment deadline is Monday, April 15. That's also the day you must send in either your completed Form 1040, 1040A or 1040EZ. Failure to do either (or both) will cost you more in penalties (although the IRS says it will cut some folks some penalty slack this screwy filing season) and interest. In general, though, the penalty for not filing or sending in a Form 4868 to get a six-month extension is larger than for not paying. But you'll still be slapped with some extra... Read more →


Did you put off filing your tax return until the last minute because you knew you'd owe Uncle Sam? You, my friend, are not alone. Although the vast majority of taxpayers get refunds, there are those of us for whom Tax Day is pay-up day. But if we're short of the cash on April 15 -- or this year, April 17 -- the Internal Revenue Service does offer us, as today's penultimate filing season 2012 Daily Tax Tip notes, some tax payment options. Short-term installment agreement: While it's true that on Tax Day both your tax return and any tax... Read more →


It's no secret that celebrities get into tax trouble as often, if not more so, that we regular folks. And it's definitely true that when famous folk run afoul of the IRS or state revenue offices, the unpaid tax amounts are pretty impressive. So it make sense that the famous and, after their tax troubles, formerly rich also take advantage of a remedy available to everyone: installment payment plans. That's the case for a couple of celebrities in recent days. Tax lien trouble, dahling: The Hungarian bombshell of the 1950s and 1960s, Zsa Zsa Gabor, is dealing with a tax... Read more →