Jim Payne's Tax Blog in Gainesville, FL

Owe the IRS more than you can afford? An Offer in Compromise (OIC) might let you settle for less than the full amount. Sounds great, right? Well, the IRS doesn’t make it easy. Most OICs get rejected because people don’t understand the process or submit unrealistic offers. Here’s how to do it righ...

Here’s one of my predictions for the next few years—thanks to recent IRS layoffs and ongoing staffing shortages, more Offers in Compromise (OICs) are going to slip through the cracks. And when that happens, some taxpayers might see their tax debt automatically settled without the IRS ever reviewi...

No one wants to deal with an IRS audit, but here’s the good news: the chances of facing one are shrinking. Traditional IRS audits will become rarer due to recent layoffs and a shift toward automation. And with the right strategy, you can make tax season even easier for yourself.Why Field and Offi...

If you’ve received an IRS Final Notice of Intent to Levy (Letter 1058 or LT11), you might be wondering just how "final" it actually is. The short answer? It’s pretty serious, but you still have options—if you act fast.Let’s break it down.What Is the Final Notice of Intent to Levy?This letter mean...

Many taxpayers assume cryptocurrency is hard for the IRS to track. That assumption is flat-out wrong. The IRS has been aggressively gathering information on crypto users for years. If you lie about your holdings on Form 1040 (your tax return) or Form 433 (used when negotiating tax debts), you’re ...

Tax season can be stressful, and nothing makes it worse than getting a Form 1099-K that’s incorrect. Whether the amount reported is too high, too low, or just completely wrong, it’s important to address the issue quickly to avoid headaches with the IRS. Here’s what you need to know if you receive...

Keeping track of your basis is essential if you own an S corporation. It affects whether you can deduct losses, whether your distributions are tax-free, and how much tax you’ll owe when you sell your stock. Unlike C corporations, where stock basis doesn’t change much, S corp owners see their basi...

The IRS is losing workers fast. Buyouts and layoffs gut the agency, leaving fewer employees to handle an already messy tax system. Instead of hiring more staff, why not simplify the tax code so a smaller IRS can manage it? Here are some tax changes that could make life easier for everyone.1. Elim...

If getting the IRS on the phone felt impossible before, just wait. The agency is losing workers quickly due to a federal buyout program and mid-tax-season layoffs.Here’s the deal. The government offered IRS employees a buyout—quit by early February, get paid through September, and don’t work in b...

Filing a joint tax return with your spouse has its perks—like better tax rates and deductions—but it also means both of you are responsible for any taxes owed. That’s all fine and dandy when everything is on the up and up. But what if your spouse (or ex-spouse) messes up the taxes or straight-up ...