Forms
What is the purpose of Form 1040?
Used for individual income tax returns.
What is a common deduction for homeowners?
Mortgage interest deduction.
What is an Offer in Compromise?
A program that allows taxpayers to settle tax debt for less than the full amount owed.
What is a CP2000 Notice?
A notice indicating a discrepancy between reported income and IRS records.
"I can't afford to pay my tax debt." What is one solution?
Installment Agreement or Offer in Compromise.
Which form is used to apply for an Offer in Compromise?
Form 656.
Which deduction is available for student loan interest?
Student loan interest deduction (up to $2,500).
What are the three types of Offer in Compromise qualifications?
Doubt as to Collectibility, Doubt as to Liability, and Effective Tax Administration.
What should a taxpayer do upon receiving an IRS audit letter?
Respond promptly, provide requested documentation, and consider professional representation.
"I don’t trust tax resolution companies." What can you say?
Explain Clear Path Advisors' expertise, Enrolled Agents' qualifications, and success stories.
What is the purpose of Form 9465?
Used to request an IRS installment agreement.
What business expense deduction is available for self-employed individuals who work from home?
Home office deduction.
What is the IRS Fresh Start Program?
An initiative to help taxpayers settle tax debt through installment agreements and Offers in Compromise.
What is the IRS hardship program?
A status where a taxpayer is deemed Currently Not Collectible (CNC) due to financial hardship
I already have a CPA handling my taxes." How do you respond?
CPAs focus on tax filing, but Enrolled Agents specialize in tax resolution and negotiating with the IRS.
What form is used to request a Collection Due Process hearing?
Form 12153.
What medical expense threshold must taxpayers exceed to deduct expenses?
7.5% of Adjusted Gross Income (AGI).
What happens if a taxpayer does not respond to an IRS Notice of Intent to Levy?
The IRS may seize assets such as wages, bank accounts, and property.
What is the difference between a federal tax lien and a tax levy?
A lien is a legal claim on assets, while a levy is the actual seizure of assets.
"The IRS won’t actually take my wages or assets." What is the truth?
The IRS can garnish wages, seize bank accounts, and place liens on property.
What is the purpose of Form 433-A?
Used to provide financial information for individuals seeking tax relief (Collection Information Statement)
What retirement account contributions are tax-deductible?
Traditional IRA and 401(k) contributions (subject to limits).
What is the Statute of Limitations on IRS collections?
Generally 10 years from the date of assessment
What is an IRS wage garnishment?
A legal process where the IRS takes a portion of a taxpayer’s paycheck to satisfy tax debt
"I think I can handle this on my own." What are the risks?
Taxpayers without professional help often make mistakes, overpay, or fail to qualify for relief programs.