Ask Channika | New Beginnings One Stop Tax Help

Be Thankful.

So often we forget to be Thankful in All Things. We make decisions in life that causes us to be afraid, saddened, happy, and angry. Life happens to us! But when was the last time that you were actually Thankful for being you, for being where you are and for being alive. I want to tell someone today that I am Thankful. I am Thankful to be alive, I am Thankful to be able to help others, I am Thankful for the good, the bad, the happy and the sad. Most of all, I am just Thankful for being loved by an awesome creator!!!

What is an Identity Protection (IP) PIN and When Should You Have One?

An IP PIN is a six-digit number assigned by the IRS to eligible taxpayers. This pin helps prevent the misuse of taxpayers’ SSNs on fraudulent federal income tax returns. The IP PIN was originally established several years ago to aid taxpayers whose SSNs had been used to file a fraudulent return or if a taxpayer’s SSN had been compromised and there was concern it could be used to file a fraudulent return.
When a SSN is Fraudulently Used. Identity theft and refund fraud victims may be unaware that their identity has been used fraudulently, or when they are aware, they may not be fully informed of the outcome of their case. The Taxpayer First Act addresses this situation by requiring that the IRS notify a taxpayer if it determines any of the following: there has been any suspected unauthorized use of a taxpayer’s identity or of that of the taxpayer’s dependents; if an investigation has been initiated and its status; whether the investigation substantiated any unauthorized use of the taxpayer’s identity Furthermore, when an individual is charged with a crime, the IRS must notify the victim as soon as possible, giving the victim the ability to pursue civil action against the perpetrators.
Is an IP PIN right for you? That depends; the process is quite complicated, and you get a new number every year. So, you have to weigh the trouble and inconvenience it creates when your SSN has not been compromised with knowing you can always obtain an IP PIN if your SSN is compromised in the future or if you feel it may have been compromised. The decision is up to you.

What Are the Differences Between an IRS Tax Lien and Tax Levy?

Typically, this is something that occurs when you’re past due on your income taxes and you’ve failed to make proper arrangements to get yourself back up to date again.

An IRS Tax Lien?

A tax lien is essentially the first part in a two-step process. An IRS tax lien is a very specific type of claim that the government (in this case, the Internal Revenue Service) makes on your property. That property can include but is not limited to real estate and other types of assets.

An IRS Tax Levy?

That second step takes the form of a tax levy, which involves the actual seizure of the property in question in an effort to pay the tax money you owe.

Channika Daniels EA, Tax Accountant | (480) 663-7867 | www.onestoptaxhelp.com