tax resolution: The Procrastinator’s Guide to Surviving Tax Day - 03/02/21 02:39 PM
If you are a procrastinator, tax filing season is probably the worst time of year. With deadlines looming, filling out all those complicated forms and making sense of an increasingly complex tax code that changes almost every year can seem like an overwhelming task. But no matter how long you put it off, the April 15 tax filing deadline will arrive, and what you do to get ready will make all the difference.
 
Most Americans voluntarily file their tax returns and pay their taxes. Most people explain it by saying they want to pay their fair share. Others file to get a … (0 comments)

tax resolution: How to Amend a Tax Return for a Prior Year - 03/02/21 12:31 PM
Tax returns can often be filed with incomplete or incorrect information, leading you to more tax trouble than you bargained for. If you filed early, you might have overlooked income from a temporary job or a side gig, only to get a 1099 or late W2 for the income earned.
 
Other filers may eventually realize that they were entitled to an extra deduction or exemption. The Internal Revenue Service routinely processes a significant number of amended returns each year and provides a specific form for changing the status of an earlier tax return.
 
Individual income tax returns filed with the IRS can … (2 comments)

tax resolution: 7 Tips to Reduce Your Chances of Falling Victim to Tax Identity Theft - 01/05/21 09:50 AM
Tax identity theft occurs when identity thieves obtain your Social Security number and file a fraudulent tax return on your behalf. According to the Federal Trade Commission, tax identity theft is the most common form of identity theft. The FTC estimates that it costs taxpayers over $5 billion a year.
Consumer advocates believe that since Social Security numbers are so readily available on the dark web, a majority of Americans are at risk. Unfortunately, most tax identity fraud victims don't realize that they have fallen victim until they try to file their return. Luckily, there are some important tips that you … (2 comments)

tax resolution: 3 Essential Steps to Prepare for Tax Season and Avoid Tax Trouble - 01/05/21 09:28 AM
Taxes are one of those topics people hate to talk about or even think about, especially if they end up owing money in back taxes every year. That's why many taxpayers wait until the very last moment to prepare for tax season. It’s also why nearly 14 million Americans find themselves receiving threatening letters from the IRS and in some sort of collection proceedings.   With the new Biden administration taking office this month, more tax changes are almost certain. COVID relief is another factor to account for, and things are changing almost daily. So it's never too early to start … (0 comments)

tax resolution: Do You Need A Tax Attorney if You Owe Back Taxes? - 12/01/20 02:59 PM
 
If you owe back taxes you might think you need a tax attorney, but that’s not necessarily always the case. Just like hiring a traditional accountant to try to resolve your tax debt might not be the best choice, hiring a tax attorney, who doesn’t specialize in tax resolution might be the same thing.
 
When you owe the IRS back taxes, it’s best to have the right tax relief firm representing you so you can get the best result possible. Don’t try to face the most brutal collection agency on the planet alone. You’ll be sorry you did.
 
In this article we … (0 comments)

tax resolution: Did You Know You Might Owe Taxes On Debt That's Forgiven? Here’s How It Works. - 11/05/20 01:28 PM

 
When you owe creditors money that you can't afford to repay, sometimes you may be able to get the debt forgiven or otherwise canceled. When this happens, you no longer owe your creditors the money that you used to owe them.
 
The IRS, however, usually treats such canceled debt as income that you've received. Income that you could owe taxes on. If you fail to report it or fail to pay your taxes on the cancelled debt, you’ll end up owing penalties and interest and over time, that could be just as big of a hassle as your original debt.
 
Note: … (0 comments)

tax resolution: Did You Make Money with Cryptocurrency? How to Get Right with the IRS - 11/05/20 01:24 PM

 
For early adopters of Bitcoin, Ethereum and other popular cryptocurrencies, the profit potential has been simply stunning. While there have been some heart stopping moments and frightening ups and downs, the clear long-term trajectory has been upward.
 
If you are one of those early adopters who profited from the rise in cryptocurrency values, you are probably feeling pretty good about your decision. But your good fortune could soon take a dark turn, one that could leave you in hot water with the IRS.
 
After many years of taking a hands-off approach to cryptocurrency investments, the IRS is now making up for lost time. … (0 comments)

tax resolution: If You Don't Have Money to Pay Your Taxes, You Have Legitimate Options - 10/29/20 11:06 AM

If you don't have money to pay what you owe the IRS, you have a few options to work with. Whatever you do, don’t ignore the letters from the IRS and don’t let your back tax problem go unattended. The IRS has a great deal of power when it comes to recovering money they think is theirs.
 
When you owe the IRS money, they can garnish your wages, levy your bank accounts, put a lien on your home and seize other assets.
 
Here's what you can do if you find yourself not being able to pay your taxes. Note, we always … (0 comments)

tax resolution: Bankruptcy FAQ for Individuals - 10/29/20 10:54 AM

 
Filing for bankruptcy is a difficult and draining process. People often feel ashamed, scared, or confused. If you find yourself with no other options, bankruptcy can be a good way to clear out old debts, change financial patterns, and most importantly get a fresh start. Here is everything you need to know about filing for bankruptcy.
 
Note: Depending on what type of taxes you owe, you might not be able to wipe out your back taxes in bankruptcy proceedings. Our firm specializes in tax resolution and back tax debt settlements with the IRS. So if you’re considering bankruptcy in part because of … (0 comments)

tax resolution: The IRS is getting ready to take your paycheck again - 10/29/20 10:24 AM

 
COVID-19 has caused many tax problems, but some taxpayers received a reprieve from the IRS when they released their “People’s First Initiative” back in March. Basically, the IRS realized businesses were shutting down and millions of people were losing their jobs. If people are not working, they don’t have money to pay the IRS. As a result, the IRS decided to step back and hold off on most new collection activities. That means that most people who were on track to have their wages garnished in April or have a lien attached to their home in May did not actually have … (0 comments)

tax resolution: What is a Levy? IRS and Other Asset Levies Explained - 10/27/20 02:20 PM

 
Falling behind on your debts is never a fun place to be. It’s less fun when a levy is placed on your assets. In this article, we look at what an IRS levy is, why it happens, and what you can do about it.
 
Note: If you have any tax trouble or owe more than $10k to the IRS or state but can’t pay in full, contact our firm today. We help people find tax relief. Often, we can resolve your IRS levy without you having to talk to the IRS. Call today. (860) 580-5183
 
What is an IRS Levy?
Simply put, if … (1 comments)

tax resolution: Avoid These 5 Common Tax Filing Mistakes That Can Get You In Tax Trouble - 10/27/20 02:16 PM

 
Whether you file the simple 1040EZ or a complex 1040 and a raft of schedules, making a mistake on your tax form could lead to big tax trouble. Something as simple as a math error or unsigned form could invite extra attention from the IRS.
 
The tax agency sees those mistakes every year, and IRS representatives warn taxpayers to be careful when filling out their forms. Even if you think you have everything filled out perfectly, it never hurts to double-check and look for these common Tax Day errors.
 
#1 - Assuming Your Tax Pro Prepared Your … (3 comments)

tax resolution: What you need to know about the new stimulus proposal - 05/12/20 06:56 AM
Nothing.
 
Many people just assume that I must be some sort of mathematical wizard.  It kind of just goes with the job.  In many ways though that's a misunderstanding of what the tax world is like.  My primary focus is on representing taxpayers in front of the IRS or state taxing authority and resolving tax problems.  I'm also heavily involved in tax preparation.  With both of those areas it is much more about understanding and interpreting the law rather than the underlying math.  
 
I spend much more time than the average person following and tracking proposed legislation.  If the only time you read about legislation is … (1 comments)

tax resolution: No Deductions for PPP Expenses - 04/30/20 03:56 PM
The IRS just released Notice 2020-32 and it contained some disappointing but not surprising news.  Turns out you still can't have your cake and eat it too.  There's been some debate surrounding the deductibility of the covered expenses under the Paycheck Protection Program once the loan has been forgiven.  Based on how it was worded in the law I was inclined to think that there was a chance that the expenses would still be deductible.  The IRS has now officially come out and said...Nope.  
 
This is disappointing, but ultimately not that big of a deal.  There are many references throughout the law about preventing … (3 comments)

tax resolution: Stimulus Checks are coming and it's already a mess - 04/15/20 11:31 AM
The Economic Impact Payments, or stimulus checks, started arriving in people's bank account on Friday.  It's Wednesday and it's already clear that the IRS has made a mess of things.  My main focus is on Taxpayer Representation and Tax Resolution.  I work in Hartford County CT with clients locally and throughout the country to resolve their tax problems.  I've seen plenty of screw ups by the IRS, but I can't think of another one on this scale.  
 
The good news is that most people aren't negatively effected by this.  What should be happening is that everyone who has filed a tax return for … (3 comments)

tax resolution: The IRS just gave people even more time - 04/09/20 04:20 PM
There's been an almost constant flow of changes coming out of Washington DC for the last few weeks.  A few minutes several new things were announced. Most of it doesn’t apply to the average person but there are two main things that I want to highlight that came out of IRS Notice 2020-23. This extends many deadlines that were hanging in suspense.
 
The one that’s going to effect the greatest number of people is the 2nd quarter estimated tax payment. An earlier notice pushed the first quarter payment back to July 15th but left the second quarter payment still due on June 15th. … (3 comments)

tax resolution: Why you should want your stimulus check - 04/01/20 03:19 PM
Most people are going to be confused by this title.  Money is coming, why wouldn't you want it?  Well, I've been fielding alot of questions from people that don't, and I think they're wrong.  Part of it is because of misinformation.  In an earlier post I covered most of the ins and outs of who is getting a check and for how much.  Even though the law was signed less than a week ago, people have been talking about it for much longer than that.  Some people are talking about things that didn't make it into the final bill and others are … (1 comments)

tax resolution: Stimulus checks are now law, here's what you need to know - 04/01/20 02:36 PM
From my office in Hartford County CT I my main focus is working with clients througout the country on Taxpayer representation and resolving tax problems.  I still prepare a few hundred tax returns each year though.  Because of that I'm the trusted source of information for a lot of people and I've beeng getting questions for weeks about it. The bill covered a lot of things including treament of NOLs, charitable donations, employer firnge befits for student loans, and more.  Those are all topics for another day.  The big thing that everyone wants to know about now is the stimulus checks.  Now … (2 comments)

tax resolution: Hartford, CT: COVID-19 and paying your taxes Official Guidance - 03/19/20 11:13 AM
I’ve been telling people over and over again for years that filing an extension for your taxes is an extension of time to file, not an extension to pay. I posted yesterday about proposed action from the IRS for payments this year. Shortly after I posted that IRS Notice 2020-17 was issued making it official, and it is largely what I expected. Now what we have is an extension of time to pay, but not an extension of time to file. Which is the opposite of how it’s always worked in the past. People who owe under $1,000,000 now have up … (3 comments)

tax resolution: Hartford, CT: Has the IRS called you? It may be legit. - 03/18/20 03:05 PM
Calls from the IRS
 
I’d be surprised if someone told me they haven’t gotten a scam call from “The IRS”. Some people found these calls annoying, others found them laughable, but enough people found them convincing for scammers to collect millions of dollars.
While many people made fun of the calls, there were also many news stories about how to protect yourself from scammers. One point I heard many times was that “the IRS never makes phone calls”. The IRS’s favorite method of communication is by mail, but saying that the IRS never makes calls is an oversimplification.
A call will never be their … (1 comments)

 
Joseph Orabona, Your defense against the IRS (Vector Tax & Accounting LLC)

Joseph Orabona

Your defense against the IRS

Windsor Locks, CT

More about me…

Vector Tax & Accounting LLC

Address: 576 Elm St, Second Floor, Windsor Locks, CT, 06096

Office: 860-580-5183

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