What is a tax lien?
A tax lien is a legal claim by the government on a person's property due to unpaid taxes. It gives the government the right to seize the property to pay off the unpaid taxes. Tax liens may be filed by the Internal Revenue Service (IRS) or by state and local governments.
How long can the IRS collect back taxes?
The IRS can generally collect back taxes for up to 10 years from the date the taxes were assessed. This is known as the Collection Statute Expiration Date (CSED). However, there are certain circumstances that can extend the CSED, such as if the taxpayer agrees to an extension or if the IRS takes legal action to collect the taxes.
Can I deduct my home office expenses?
If you are a self-employed taxpayer, you may be able to deduct some of your home office expenses on your tax return. To qualify, the home office must be used regularly and exclusively for your business. The deduction is calculated based on the percentage of your home that is used for business purposes.
How do I appeal a tax audit?
If you disagree with the results of a tax audit, you can appeal the decision through the IRS Appeals Office. To start the process, you will need to request an appeal within the specified timeframe and provide a written explanation of why you disagree with the audit findings. The appeal will be reviewed by an independent officer who will make a determination based on the facts of the case.
What are the penalties for tax fraud?
The penalties for tax fraud can be severe, including fines, interest, and even criminal prosecution. The specific penalties depend on the nature and severity of the fraud, but may include additional taxes owed, civil penalties, or even imprisonment. It is important to seek the advice of a qualified tax professional if you are under investigation for tax fraud.
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