CANDACE STEVENS's (numbercruncherllc) Blog

Receiving a notice about a Federal Tax Lien from the IRS can be deeply unsettling. Many people confuse a lien with a levy, or assume their financial life is over. The truth is, a tax lien is a serious legal tool, but understanding exactly what it is and what it isn't is the critical first step in...

A tax lien is one of the most serious actions the IRS can take when you owe back taxes. It’s the government’s legal claim against your property as security for the debt. Once filed, a lien can affect nearly every part of your financial life.After filing a Notice of Federal Tax Lien, the IRS alert...

When selling your home, the basis plays a crucial role in determining your capital gains tax liability. A higher basis means lower taxable gains, helping you keep more profit. But what exactly is basis, and how can you increase it? Let’s break it down.  What Is the Basis of Your Home?The basis of...

As a homeowner, you might worry about capital gains taxes when selling your home. Fortunately, there's a tax provision called the "Section 121 Exclusion" that could help you reduce or avoid taxes on the sale of your primary residence.In simple terms, the Section 121 Exclusion allows homeowners to...

When seeking assistance from tax professionals for your federal tax return, it's crucial to choose your preparer wisely. Remember, you are ultimately responsible for all the information included on your federal income tax return, no matter who prepares it.Resources for Finding the Right Tax Prepa...

When it comes to filing taxes, the decision between using tax software or hiring a tax professional largely hinges on the complexity of your financial situation.Tax Software: A Good Fit for SimplicityTax-preparation software is ideal for individuals with straightforward financial situations. If y...

A client came to me with a big IRS problem.  The Client had received letters showing an estimated $64,324 in Federal and State taxes were owed for the years 2013, 2014, 2015, 2016, 2017, 2018 & 2019.  In visiting with the client it was discovered returns were not filed because of the spouce's dea...

The Internal Revenue Service (IRS) plays a crucial role in ensuring taxpayers' compliance with tax laws, and one way it achieves this is through audits. Understanding the red flags that may catch the IRS's attention is vital for taxpayers aiming to stay on the right side of tax regulations. In th...

The dreaded IRS audit – a prospect that can send shivers down the spine of even the most diligent taxpayer. One common method employed by the IRS is the mail audit. In this blog post, we'll take a closer look at what a mail audit involves and how you can navigate this process with confidence.Unde...

An IRS audit is an examination of a taxpayer's financial records and tax returns by the Internal Revenue Service (IRS) to determine if the amount of taxes reported and paid is accurate. Some key things to know about IRS audits: Selection Process - Tax returns are selected for audit either randoml...