Jim Payne's Tax Blog in Gainesville, FL

As April 15, 2025 approaches, many taxpayers face an uncomfortable reality: owing more in taxes than they can immediately pay. The IRS's short-term payment plan offers a practical solution for those needing extra time to settle their tax debt.A short-term payment plan allows taxpayers to spread t...

A few of us had dinner after a community meeting recently. One participant talked about his marketing and sales consulting side business. He was proud of his work but had a concern. What if the IRS claims his business is just a hobby and disallows the losses he’s claimed?His concern is valid. The...

The world of tax resolution can be difficult to navigate. Many taxpayers seeking relief from IRS debts fall victim to unscrupulous firms. These companies often promise the moon but deliver little—or nothing at all. Recently, I spoke with a taxpayer in distress. His story sounded all too familiar....

Falling behind on payroll taxes can feel like a ticking time bomb. The IRS takes unpaid payroll taxes seriously, viewing them as "trust fund taxes" withheld from employees. While the IRS offers resolutions like payment plans, their focus on preventing debt growth can leave your business strugglin...

Understanding the IRS's perspective is key when negotiating a tax debt exceeding $100,000. Using the Reasonable Collection Potential (RCP) formula, they evaluate your ability to pay. Centering your strategy on this formula improves your chances of a favorable resolution.WHAT IS THE RCP?The RCP me...

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 ...