Jim Payne's Tax Blog in Gainesville, FL

If you’ve received a Final Notice of Intent to Levy or a Notice of Federal Tax Lien, you may have the right to request a Collection Due Process (CDP) hearing. This formal process allows you to challenge the IRS’s proposed collection actions and explore alternatives to resolve your tax debt. Here’...

Receiving an IRS Final Notice of Intent to Levy (Letter 11) can be alarming. This letter indicates that the IRS plans to seize your assets—like bank accounts, wages, or even property—to satisfy a tax debt. But don’t panic! You have options to protect yourself and avoid a levy if you act quickly a...

The IRS is at the center of several important updates that could impact taxpayers and businesses in the coming months. Here’s a breakdown of the most relevant news to keep on your radar:1. Tax Season Deadlines Are ApproachingAs we gear up for the 2024 tax filing season, it’s time to get your pape...

Debt forgiveness can feel like a relief but often comes with an unexpected tax bill. The IRS treats canceled debt as taxable income, which means you may owe taxes on the forgiven amount. Understanding how this works can help you avoid surprises at tax time if you've had debt forgiven.What Is Canc...

Divorce can be a challenging process, but for many, the financial aftermath can be just as difficult—especially when it comes to dealing with the IRS. Divorce settlements often involve splitting assets, debts, and obligations, which can lead to unexpected tax consequences. These issues sometimes ...

Falling behind on payroll tax deposits stems from inadequate profitability, not neglect. When cash flow is tight, business owners may prioritize immediate expenses over payroll taxes, hoping things will improve. However, the IRS doesn’t see it that way. Failing to deposit payroll taxes can result...

Some business owners "borrow" from payroll tax deposits when cash flow gets tight, hoping for a turnaround. But this is a dangerous gamble. Payroll taxes aren’t optional—they’re trust fund taxes. Failing to deposit them is viewed as theft by the IRS, and the consequences are severe.The Danger of ...

The IRS uses specific guidelines based on custody arrangements to determine who can claim a child as a dependent for tax purposes. One key factor that often arises in disputes is where the child spent the majority of nights during the tax year. Understanding these rules is essential for family la...

The U.S. tax code has become a maze of regulations that overwhelms taxpayers and consumes billions of hours annually. The National Taxpayers Union Foundation estimates Americans spend 6.5 billion hours on tax compliance, costing over $280 billion per year. Simplifying the code isn’t just about sa...

Receiving an IRS audit notice can feel overwhelming, but your steps will depend on the type of audit: correspondence, office, or field. Each requires a tailored approach, and professional representation is especially helpful in avoiding common missteps, like saying too much during in-person meeti...