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Showing posts from March, 2023

IRS Publishes Warning on Offer in Compromise Mills

 The Internal Revenue Service (IRS) recently issued a warning to taxpayers to watch out for so-called "Offer in Compromise mills," which are companies or promoters that claim to be able to help taxpayers settle their IRS debts through an Offer in Compromise (OIC) but often engage in unethical and illegal practices. In a news release, the IRS included OIC mills in its annual "Dirty Dozen" list of tax scams, which highlights the most common and dangerous tax-related scams that taxpayers should watch out for. Here's what you need to know about OIC mills and how to protect yourself. What is an Offer in Compromise? An Offer in Compromise is a program offered by the IRS that allows taxpayers to settle their tax debts for less than the full amount owed. To qualify for an OIC, the taxpayer must demonstrate that they are unable to pay the full amount of their tax debt, either through a lump sum payment or a payment plan. The IRS will consider the taxpayer's income,

Social Media Influencers - Yes, You Have to Pay Taxes on That!

  The rise of social media has opened doors for countless individuals to gain popularity, influence, and even financial success. However, with great opportunities come great responsibilities, including paying taxes on the income earned. The recent New York Times article Lora Kelley, " They Went Viral and Made Money. Now They Owe Taxes," sheds light on a growing problem for many social media influencers who are struggling to keep up with their tax obligations.   According to the article, many social media influencers have found themselves in a precarious situation where they have earned significant income from brand partnerships, sponsorships, and ad revenue, but have failed to properly report or pay taxes on that income. Some influencers have even admitted to intentionally avoiding taxes, thinking they were too small for the IRS to notice or that they could get away with it.   However, as the article notes, the IRS is now cracking down on influencers who are not payi