Do Not Ignore Letters from the IRS!
When you receive a letter in the mail from the IRS, there's no need to panic. However, you should not ignore it either.
Movie star Terrence Howard was in the news lately because reports state he owes the IRS approximately $1 million in back taxes. The original amount was $578,000 but factor in penalties and interest, he's at about $1 million for failing to pay between 2010 and 2019.
Terrence thinks it's immoral to tax descendants of the enslaved. Whether you agree or disagree, there is no tax law stating such. No matter what he thinks, he is evading taxes.
Tax evasion is the intentional non-payment or under-payment of taxes through false representations. It is a criminal offense.
Examples of tax evasion include:
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Tax avoidance is using the tax code to legally minimize the amount of income taxes owed.
Some letters you can call the IRS to resolve yourself. If you can't, contact a professional to ensure you resolve the issue in a timely manner.
There are over 70,000 pages in the tax code that includes regulations and official tax guidelines. You need a tax strategist to help you apply the code to pay the least amount in taxes.
Karitsa Kerns is an Enrolled Agent and Tax Strategist who specializes in reducing tax liabilities through proactive tax planning tailored for each unique individual. As an Enrolled Agent licensed through the Internal Revenue Service, Karitsa can represent taxpayers in all 50 states. As the owner of KNK Tax and Accounting Services, she provides services ranging from Tax Advisory, Fractional CFO, Tax Planning, Tax Preparation, and Tax Resolution.
If you are a H.E.N.R.Y (High Earner, Not Rich Yet), working with an expert who specializes in Tax Strategy makes all the difference in your bank account. At KNK Tax and Accounting Services we provide quality services, and educate our clients to contribute to the success of their business. Please visit us at knktaxaccounting.com for more information or to schedule a consultation.