IRS Tax Settlement Firms

The Truth About IRS Tax Settlement Firms

They sound good, but a qualified tax attorney is probably a safer bet

By

MARK P. CUSSEN

 

Updated December 06, 2022

Reviewed by

LEA D. URADU

Individuals and businesses with outstanding tax balances due can face severe penalties from the Internal Revenue Services (IRS), including the eventual seizure of personal or business assets in some cases. To handle this dilemma—which can trigger a significant financial crisis—a new type of business has sprung up to help delinquent taxpayers cope with their tax debts.

Known as tax settlement firms, these entities claim they can drastically reduce or eliminate whatever the client owes the IRS. But can these firms really deliver what they promise, or is it buyer beware?

KEY TAKEAWAYS

  • Tax settlement firms claim to have a litany of experts such as former IRS employees who can go to bat for their clients.
  • Promises
… Read More

College Financial Aid

College Financial Aid

College in the United States is expensive. In the 21st century alone the cost has doubled and only continues to rise (6.8% in 2021). The average cost is 35,331 per year and for most Americans, this is impossible to pay without financial aid. So, let’s say you are in college, have a student loan, a few grants, and scholarships, and a work-study job through your college. These all affect your tax return and future financial liabilities, especially with student loans. Then it’s time to complete your tax return, you may find yourself asking what payments are considered income, what can be deducted, and how can I make sure I’m planning my taxes to minimize financial responsibilities in the future. 

Grants and Scholarships

First, let’s look at the effects scholarships and grants have on your tax liability. Financial aid in the form of grants and scholarships doesn’t need to … Read More

Home Office Deductions

Home Office Deductions

You’re eligible to claim deductions related to their home office if you’re self-employed and working from home, even if it’s only part-time. Unfortunately, If you are an employee who is working from home, you aren’t eligible to deduct any expenses. Although you cant claim tax deductions many employers are currently helping cover the cost of working at home for their employees. If your employer currently isn’t covering these costs, I would recommend reaching out to your HR department or manager to see if they would be able to help cover the costs or reimburse you for any related expenses.

What is a Home Office?

You are eligible to deduct qualified home office expenses if you are self-employed and work from home. you must use an area regularly and exclusively for your self-employed business for an area in your home to be considered a home office. Also, the area … Read More