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# Dick Norton, EA, FATP

IRS and FTB audit, collection, and appeals tax help.

## Sitemaps

- [XML Sitemap](https://dicknortontaxes.com/sitemap.xml): Contains all public & indexable URLs for this website.

## Posts

- [Blog](https://dicknortontaxes.com/blog/) - Tax Tips, Tricks, & News There has been a lot of attention given to the new FinCEN Beneficial Ownership Information (BOI) reporting and the horrific penalties for failing to comply. The entities with the filing requirement (discussed below) are those that were in existence on January 1, 2024, as well as those created in 2024
- [Flipping Your First House](https://dicknortontaxes.com/flipping-your-first-house/) - Individuals who opt to pursue house flipping in the hope of making some quick money need to exercise care to avoid an unplesant tax consequence.
- [Agentforce - IRS's New "AI" Resource](https://dicknortontaxes.com/agentforce-irss-new-ai-resource/) - Artificial Intelligence (AI) is rapidly changing the way businesses and government agencies operate. Now, the Internal Revenue Service has joined that movement by implementing Salesforce's AI platform known as Agentforce. The IRS "AI" deployment will impact how practitioners prepare and advocate for clients in audits and appeals. For taxpayers, tax professionals, and IRS employees alike,
- [Do I Lose My Refund for Not Filing My Return?](https://dicknortontaxes.com/loss-of-refund-for-2022/) - Many taxpayers don’t realize that simply failing to file a tax return can mean permanently losing money that is rightfully theirs. Over the years—first during my time working at the IRS and now in private practice—I’ve seen this happen far too often. People assume that if they’re owed a refund, there’s no urgency to file.
- [Can I Deduct Business Gifts?](https://dicknortontaxes.com/deducting-business-gifts-2/) - Providing holiday and special-occasion gifts to customers, vendors, etc., is a good business practice. Be aware of cost limitations and record-keeping rules.
- [Can Your Tax Debt Threaten Your Passport?](https://dicknortontaxes.com/when-tax-debt-threatens-your-passport/) - The IRS has a new enforcement tool. They can use the Department of State to deny a new passport or a passport renewal, or revoke an existing passport.
- [Are Gambling Losses Deductible?](https://dicknortontaxes.com/determining-gambling-losses-against-gambling-winnings/) - One of the most misunderstood areas of federal income taxation involves the treatment of gambling winnings and losses. Many taxpayers assume that if they win $20,000 during the year but lose $19,500 overall, they simply report a net gambling profit of $500. Others believe every spin of a slot machine is a separate taxable event.
- [Is My Foreign Income Tax Free?](https://dicknortontaxes.com/is-my-foreign-income-tax-free/) - Excluding foreign income from U.S. taxation requires careful planning to ensure compliance with the legal requirements.
- [Starting a New Business](https://dicknortontaxes.com/starting-a-new-business/) - Starting or buying a business often requires significant spending before the business officially opens. Fortunately, the tax law allows you to deduct at least some of these costs instead of waiting until you sell the business to receive a tax benefit. In general, you may deduct up to $5,000 in qualifying start-up expenses during your
- [IRS Late Filing or Payment Penalties](https://dicknortontaxes.com/irs-late-filing-or-payment-penalties/) - I am going to address personal income tax returns, but the following is applicable to most types of tax liabilities. Generally, filing and payment of individual taxes (Form 1040) are due April 15th of every year. You can file Form 4868, postmarked before midnight on April 15th, for an extension of time to file your
- [Property Donations over $5,000](https://dicknortontaxes.com/large-property-donations/) - Donating non-cash property to charity can provide a valuable charitable tax deduction. In many cases, you may deduct the property’s fair market value on the date of the donation. However, the IRS closely scrutinizes these deductions because of past abuses involving inflated valuations. If you claim a charitable deduction of more than $5,000 for a
- [Why Staying Tax Compliant Matters](https://dicknortontaxes.com/why-staying-tax-compliant-matters/) - Introduction Federal taxes play a critical role in funding public services, infrastructure, national defense, healthcare programs, and other essential government functions. While tax obligations can sometimes feel overwhelming, maintaining compliance with federal tax filing and payment requirements is one of the most important financial responsibilities for both individuals and businesses. Beyond fulfilling a legal obligation,
- [Tax Tips When Converting a Long-Term Rental to Short-Term](https://dicknortontaxes.com/tax-tips-when-converting-a-long-term-rental-to-short-term/) - Converting a long-term rental to a short-term rental (such as an Airbnb) can require significant changes to depreciation and other rental reporting.
- [Inherited HSA (Health Savings Account)](https://dicknortontaxes.com/inherited-hsa-health-savings-account/) - A Health Savings Account (HSA) can be a good savings device. However, if the beneficiary is other than your spouse, the balance in that account is taxable.
- [LLC Ownership of Rental Property](https://dicknortontaxes.com/llc-ownership-of-rental-property/) - Many married couples form an LLC to own rental property to obtain liability protection. After they create the LLC, they often ask an important tax question: Does the LLC force them to file a partnership return? The answer depends largely on where they live and how they own the property. Federal tax rules treat any
- [State Income Tax Extensions](https://dicknortontaxes.com/state-income-tax-extensions/) - Executive Summary Many taxpayers (and even some practitioners) assume that filing a federal extension automatically extends their state income tax return. That assumption can be costly. While some states accept the federal extension, others grant automatic extensions, and a few require a separate state filing. Failing to follow the correct procedure can result in late
- [Tax Consequences of Insurance Proceeds After a House Fire](https://dicknortontaxes.com/tax-consequences-of-insurance-proceeds-after-a-house-fire/) - When a property is damaged or destroyed, and insurance proceeds exceed the basis, a taxable gain is realized. However, it can be deferred.
- [Late-Filed Tax Returns: A Costly California Trap to Avoid](https://dicknortontaxes.com/late-filed-tax-returns-a-costly-california-trap-to-avoid/) - The IRS and many state tax agencies assert a late filing penalty when returns are delinquent. The CA FTB has a punishing penalty to be concerned about.
- [Overtime Tax Relief Under the OBBBA](https://dicknortontaxes.com/overtime-tax-relief-under-the-obbba/) - The OBBBA provides for a new deduction based on qualified overtime pay as required and received by a worker under the federal FLSA rules and regulations.
- [Marriage Mid-Year and Community Property Law](https://dicknortontaxes.com/marriage-mid-year-and-community-property-law/) - A mid-year marriage in a community property state involves a number of considerations that must be discussed and evaluated before filing.
- [Avoid a Late Filing Penalty This Tax Season!!](https://dicknortontaxes.com/avoid-a-late-filing-penalty-this-tax-season/) - The United States Postal Service (USPS) has changed its practice regarding postmarking. Last-minute drop-off of returns and payments may be considered late.
- [California’s New Foster Care Tax Credit](https://dicknortontaxes.com/californias-new-foster-care-tax-credit/) - California as a valuable tax credit for foster children between 18 and 25 who are transitioning to adulthood. This credit can help them meet basic needs.
- [No More IRS Refund Checks!](https://dicknortontaxes.com/no-more-irs-refund-checks/) - Your tax refund will no longer arrive by paper check. The IRS recently announced that it will stop issuing refund checks, with limited exceptions. It will require taxpayers to receive refunds electronically. The transition process for federal agencies actually began last September. Why the Change? Paper checks cost more, create security risks, and take much
- [Update on the New Tip Deduction](https://dicknortontaxes.com/update-on-the-new-tip-deduction/) - Congress created a valuable new tax break for tipped workers under the One Big Beautiful Bill Act. The No Tax on Tips deduction applies retroactively beginning January 1, 2025, and the IRS has designated 2025 as a transition year. As a result, the deduction operates differently for 2025 than for later years. You, your child,
- [New IRS Form 1099-DA for 2025 Returns](https://dicknortontaxes.com/new-irs-form-1099-da-for-2025-returns/) - Taxpayers who have crypto (virtual currency) transactions during 2025 will receive a new IRS Form 1099-DA by March 31, 2026.
- [Deducting Business Gifts](https://dicknortontaxes.com/deducting-business-gifts/) - The IRS Tax Code limits business gift deductions to a total of $25 a year for all recipients. Keep good records of who got the gift, and why.
- [CA FTB Enforcement  - License Suspension or Denial](https://dicknortontaxes.com/ca-ftb-enforcement-license-suspension-or-denial/) - The FTB and the California Department of Fee and Tax Administration (CDFTA) can deny/suspend state-issued licenses for taxpayers with significant tax balances.
- [OBBBA and New 1099 Requirements](https://dicknortontaxes.com/obbba-and-new-1099-requirements/) - The OBBBA significantly changed the reporting requirements concerning the issuange of 1099-K, 1099-NEC, and 1099-MICS forms.
- [Educational Tax Benefits for Taxpayers: A Focus on 2026](https://dicknortontaxes.com/educational-tax-benefits-for-taxpayers-a-focus-on-2026/) - Understanding the tax benefits available for higher education expenses can help offset the financial burden for college classes and degrees.
- [OBBBA Change to Casualty Losses](https://dicknortontaxes.com/obbba-change-to-casualty-losses/) - OBBBA made permanent the TCJA changes from 2017 and allows a deduction for personal casualty losses from State-Declared disasters in 2026 and later.
- [IRS Using AI in Return Selection](https://dicknortontaxes.com/irs-using-ai-in-return-selection/) - The IRS is implementing artificial intelligence (AI) in its return selection process to increase its ability to identify returns with potential errors.
- [Trump Savings Accounts](https://dicknortontaxes.com/trump-savings-accounts/) - Tax-deferred Trump Accounts are a great way to build a savings account for your children under the age of 18, at which time they convert to a traditional IRA.
- [Tax Issues at the Time of Death](https://dicknortontaxes.com/tax-issues-at-the-time-of-death/) - The death of a taxpayer can raise complex tax considerations. Federal and state laws govern the tax treatment of income, deductions, and estate assets.
- [IRS OICs and State Tax Liability](https://dicknortontaxes.com/irs-oics-and-state-tax-liability/) - The IRS may consider a negotiated state tax monthly payment plan in determining allowable expenses for an Offer in Compromise (OIC).
- [Tax Issues & Benefits for Military Households](https://dicknortontaxes.com/tax-issues-benefits-for-military-households/) - Tax Issues and Benefits Affecting Military Households, Including Active-Duty Personnel, Reservists, Veterans, and Their Families.
- [OBBBA Limits IRS Gambling  Losses](https://dicknortontaxes.com/new-rule-for-deducting-gambling-losses/) - Discover how the 2026 tax law change limits gambling loss deductions to 90%, potentially increasing taxable income for gamblers.
- [1099 Filing Requirements Post OBBBA](https://dicknortontaxes.com/1099-filing-requirements-post-obbba/) - IRS Forms 1099-NEC and 1099-MISC - important changes in the filing requirements after the passage of OBBBA
- [Business Meals and Entertainment](https://dicknortontaxes.com/business-meals-and-entertainment/) - The Tax Cuts and Jobs Act (TCJA) significantly changed the rules on business meal and entertainment deductions. Most entertainment expenses became non-deductible, though the law continued to allow deductions for certain business meals and meals provided to employees. From 2018 through 2025, the IRS treats meals provided to employees either as a de minimis fringe
- [California's Proposition 19](https://dicknortontaxes.com/californias-proposition-19/) - The most significant recent change to California property tax law is Proposition 19, approved by voters in November 2020 and implemented in phases beginning in February and April 2021. It was this law that enabled my family to relocate from Burbank to Santa Clarita and take our Burbank property tax base with us. This resulted
- [California Nonconformity with the One Big Beautiful Bill Act (OBBBA)](https://dicknortontaxes.com/california-nonconformity-with-the-one-big-beautiful-bill-act-obbba/) - In July 2025, Congress passed, and the President signed the One Big Beautiful Bill Act (OBBBA), introducing a number of significant changes to the federal tax code. As is often the case, currently, California has chosen not to conform to a number of key provisions of the Act. State Legislation is in the works that
- [New Senior Tax Deduction](https://dicknortontaxes.com/new-senior-tax-deduction/) - Seniors age 65 or older may qualify for a new tax deduction beginning with the 2025 tax return
- [OBBBA and Mortgage Interest Deduction](https://dicknortontaxes.com/obbba-and-mortgage-interest-deduction/) - OBBBA made changes to the mortgage interest deduction, including restoring the private mortgage insurance (PMI) deduction, but with AGI limitations.
- [Deducting Auto Loan Interest](https://dicknortontaxes.com/deducting-auto-loan-interest/) - Beginning with the 2025 tax year and extending through 2028, eligible buyers can deduct up to $10,000 per year in auto loan interest paid on new, personal-use vehicles assembled in the U.S. This is an above-the-line deduction, meaning it can reduce your adjusted gross income (AGI) whether you itemize or take the standard deduction.
- [How the OBBBA Changes Contribution Deductions](https://dicknortontaxes.com/how-the-obbba-changes-contribution-deductions/) - Congress passed the One Big Beautiful Bill Act (OBBBA) in July 2025, enacting sweeping changes to the Internal Revenue Code. Most of the change significantly impact 2025 tax returns filed in 2026. Some changes take effect for the tax year 2026 (return filed in 2027). Among the many provisions of the Act taking effect for
- [State and Local Tax (SALT) Limit Increases](https://dicknortontaxes.com/state-and-local-tax-limit-increases/) - The deduction for state and local taxes (referred to as the SALT deduction) was a big part of the One Big Beautiful Bill Act (OBBBA). The Tax Cuts and Jobs Act (TCJA), passed in 2017, imposed a cap of $10,000 on the total deduction. For the higher-income states with significant state income taxes, it created
- [Life Insurance - collecting before you check out!](https://dicknortontaxes.com/life-insurance-collecting-before-you-check-out/) - Could you use a quick infusion of tax-free cash? Your life insurance policy may provide one. Here's the really good thing: you don't actually have to die to collect! To access money from your life insurance policy without dying, you must have the correct type of policy. That would be a permanent life insurance policy
- [Deducting theft (fraud) loses](https://dicknortontaxes.com/deducting-theft-fraud-loses/) - Scams are incredibly common. I have written about them in many newsletters. According to recent data from the Federal Trade Commission, consumers reported losing more than $12.5 billion to fraud in 2024. They reported losing more money to investment scams—$5.7 billion—than any other category. Older individuals are particularly vulnerable to scams. We need to ensure
- [Inherited IRAs - New 2025 RMD Rules](https://dicknortontaxes.com/inherited-iras-new-2025-rmd-rules/) - For 2025, there are new rules regarding the RMD requirements for owners and beneficiaries of inherited IRAs
- [IRAs and Tax Benefits of QCDs](https://dicknortontaxes.com/iras-and-tax-benefits-of-qcds/) - Qualified Charitable Distributions (QCDs) offer a significant tax benefit by avoiding or minimizing the taxability of required minimum distributions (RMDs).
- [IRS Launches New "Simple" Payment Plan](https://dicknortontaxes.com/irs-launches-new-simple-payment-plan/) - The IRS recently introduced a new Simple Payment Plan designed to be more straightforward and accessible for individual taxpayers. This plan can be set up either online (at www.irs.gov) or with the assistance of an IRS employee. More than 90% of individuals with a tax balance due are expected to qualify. Best of all, if
- [Understanding your Form 1099-K](https://dicknortontaxes.com/understanding-your-form-1099-k/) - I mentioned in an earlier Blog that many taxpayers will be receiving a new form in the mail for the first time this year. Form 1099-K is a report of payments you received for goods or services during the year from: Credit, debit, or stored value cards such as gift cards (payment cards) Payment apps
- [Property Tax Relief for Firestorm Victims: What You Need to Know](https://dicknortontaxes.com/property-tax-relief-for-firestorm-victims-what-you-need-to-know/) - Governor Newsom’s January 16, 2025, executive order provides two key property tax relief measures for those affected by recent firestorms: 1. Automatic Property Tax Payment Extension Property owners in designated areas receive an automatic extension for their April 10, 2025, and December 10, 2025, property tax payments. These are now due April 10, 2026, with
- [Sale or Casualty Loss of Personal Residence](https://dicknortontaxes.com/sale-or-casualty-loss-of-personal-residence/) - You’re probably aware that when you sell your home, you may exclude up to $250,000 of your gain from tax if you’re unmarried (or married, filing separately) and $500,000 if you are married and file jointly. To claim the whole exclusion, you must have owned and lived in your home as your principal residence for
- [Tax Relief for Fire Victims](https://dicknortontaxes.com/tax-relief-for-fire-victims/) - IRS Announces Tax Relief for Individuals and Businesses in California Affected by Wildfires and Straight-Line Winds The Internal Revenue Service (IRS) announced in January that individuals and businesses in parts of California affected by wildfires and straight-line winds beginning on January 7, 2025, will receive tax relief. Affected taxpayers now have until October 15, 2025,
- [Form 1099-K Update](https://dicknortontaxes.com/form-1099-k-update/) - The IRS has expanded its reporting requirements for payments made through third-party settlement organizations (TPSOs). The common ones are Venmo, PayPal, eBay, Etsy, StubHub, Airbnb, and similar platforms. The American Rescue Plan Act of 2021 lowered the reporting threshold from $20,000 and 200 transactions per year to $600. The IRS introduced this change to address
- [Home Office Deduction](https://dicknortontaxes.com/home-office-deduction/) - When the COVID pandemic hit, many employers set up their employees to work from home. Many of those same employers realized that by taking that action, they lowered their business expenses by minimizing or eliminating renting commercial office space. Consequently, those employees have continued to work from home. I frequently get asked about the rules
- [Qualifying for an IRS Innocent Spouse Determination](https://dicknortontaxes.com/qualifying-for-an-irs-innocent-spouse-determination/) - The IRS Innocent Spouse Relief program is a legal provision designed to protect taxpayers who have filed joint tax returns. In some situations, one spouse should not be held fully responsible for tax liabilities incurred due to the actions or omissions of their spouse or former spouse. This relief is available under certain conditions and
- [Property Donations](https://dicknortontaxes.com/property-donations/) - As the year ends, many clients consider donating clothing and household items to give back while potentially maximizing charitable tax deductions. These items must be in good condition (or working order for electronics and appliances). I recommend that clients take pictures (or videos to show an old TV or appliance still works). Recent cases, like
- [Personal Property Rentals](https://dicknortontaxes.com/personal-property-rentals/) - A number of taxpayers own personal property which they rent to their own business. The rental property typically includes equipment, vehicles, and furniture. As an example, a photographer may own various types of cameras and other photographic equipment that he used in his self-employment business as a photographer. He decides to incorporate and allow
- [IRS Collection Notices](https://dicknortontaxes.com/irs-collection-notices/) - The Internal Revenue Service (IRS) plays a crucial role in the U.S. government's functioning, responsible for collecting taxes and enforcing tax laws. One significant aspect of its operations is issuing collection notices to taxpayers who owe taxes. These notices serve as official communications from the IRS, informing taxpayers of their outstanding tax liabilities and the
- [Notices of Tax Case Assigned to Private Collection Agency](https://dicknortontaxes.com/notices-of-tax-case-assigned-to-private-collection-agency/) - I've noticed a rise in the number of notices where my clients with outstanding tax liabilities are having their cases assigned to private collection agencies. This process has been around for several years and helps the IRS manage its limited resources. Collection Agency Powers These private collection agencies do not have enforcement powers. This means

## Pages

- [Home](https://dicknortontaxes.com/) - Providing IRS tax help through representation, personal income tax preparation, & consulting services nationwide and to U.S. citizens internationally.
- [Burbank IRS Tax Resolution Services](https://dicknortontaxes.com/burbank-ca-irs-ftb-ea-tax-resolution-audit-collection-appeal-oic-help/) - #Providing IRS tax help through representation, personal income tax preparation, & consulting services nationwide and internationally.
- [Santa Clarita IRS Tax Resolution Services](https://dicknortontaxes.com/santa-clarita-ca-irs-ftb-ea-tax-resolution-audit-collection-appeal-oic-help/) - Providing IRS tax help through representation, personal income tax preparation, & consulting services nationwide and to U.S. citizens internationally.
- [FAQ 15 - Case Types](https://dicknortontaxes.com/faq-15-case-types/) - Case Types for Tax Controversy Resolutions I assist with IRS Audits, IRS Collections, IRS Appeals, Installment Agreements, Offers in Compromise, Penalty Abatement, Wage Garnishments, Bank Levies, Federal Tax Liens, Passport Revocation, TFRP, California FTB Matters, Multi-State Tax Problems, Delinquent Tax Returns, Innocent Spouse Relief, Currently Not Collectible Status, Payroll Tax Problems, IRS Revenue Officer Cases,
- [FAQ's](https://dicknortontaxes.com/faqs/) - This page offers a list of Frequently Asked Questions (FAQ's). You may also reach out to me with any other questions. See my Contact page.
- [FAQ 01 - Consultation](https://dicknortontaxes.com/faq-01-consultation/) - Consultation – What You Need to Provide The most helpful thing you can bring to a tax resolution consultation is a general understanding of your situation and any documents you already have available. Don't worry if you don't have every record or if your paperwork is incomplete. Helping you identify what is needed is part
- [FAQ 02 - Delinquent Tax Returns](https://dicknortontaxes.com/faq-02-delinquent-tax-returns/) - Delinquent Tax Returns – How I Can Help If you've fallen behind on filing your tax returns, you're not alone—and it's never too late to get back into compliance. People fall behind for many reasons. A major life event, illness, financial hardship, loss of records, divorce, or simply feeling overwhelmed can make it difficult to
- [FAQ 03 - Enrolled Agents](https://dicknortontaxes.com/faq-03-enrolled-agents/) - Enrolled Agents – How They Can Help with IRS/State Tax Problems If you're dealing with the IRS or State tax controversy, you don't have to figure it out on your own. I will focus mostly on the IRS in the FAQ, but many of the same processed and procedures apply to State tax agencies. I'm
- [FAQ 04 - FTB Tax Issues](https://dicknortontaxes.com/faq-04-ftb-tax-issues/) - FTB Tax Issues – How I Can Help I can assist taxpayers with many types of California Franchise Tax Board (FTB) tax issues, including state tax audit and collection notices, delinquent returns, tax balances, collection enforcement actions, and other controversies with the FTB. Many taxpayers are familiar with the IRS but may not realize that
- [FAQ 05 - Hiring A Tax Professional](https://dicknortontaxes.com/faq-05-hiring-a-tax-professional/) - Hiring a Tax Professional – Local vs Remote When dealing with the IRS, the most important factor is usually not where your tax professional is located, but whether they have the experience and qualifications to effectively handle your specific tax issue. The IRS is a federal agency, and Enrolled Agents are authorized to represent taxpayers
- [FAQ 06 - IRS Audit Notice](https://dicknortontaxes.com/faq-06-irs-audit-notice/) - IRS Audit Notice – What Happens After Receiving the Letter Receiving an IRS audit notice can be unsettling, but it doesn't mean you've done anything wrong. In many cases, the IRS simply needs additional information to verify items reported on your tax return. The most important thing is not to ignore the notice. Every IRS
- [FAQ 07 - IRS Audits](https://dicknortontaxes.com/faq-07-irs-audits/) - IRS Audits – The Various Types and Procedures Receiving an IRS audit notice can be stressful, but an audit does not automatically mean you made a mistake or that you will owe additional taxes. An audit is the IRS process of reviewing information reported on a tax return to determine whether it is accurate and
- [FAQ 08 - IRS Bank Account Levy](https://dicknortontaxes.com/faq-08-irs-bank-account-levy/) - IRS Bank Account Levy – How to Get It Released If the IRS has levied your bank account, it is understandable to feel overwhelmed. A bank levy allows the IRS to take funds directly from your account to satisfy an unpaid tax liability. However, a levy does not always mean that you have no options.
- [FAQ 09 - IRS Collection Notice](https://dicknortontaxes.com/faq-09-irs-collection-notice/) - IRS Collection Notice – What You Quickly Need to Do Receiving an IRS collection notice can be alarming, but it's important to remember that a notice is not the end of the road. In most cases, the IRS is notifying you of a balance due and giving you an opportunity to respond before taking more
- [FAQ 10 - IRS Notices](https://dicknortontaxes.com/faq-10-irs-notices/) - IRS Notices – The Most Common Ones Explained CP 504 – Urgent!! We Intend to Levy on Certain Assets. Please respond NOW.Do not ignore this notice. A CP 504 is usually issued before the Letter 11 or the Letter 1058. You still have time to respond. However, if you ignore this notice you will soon receive one of
- [FAQ 14 - Tax Resolution](https://dicknortontaxes.com/faq-14-tax-resolution/) - Tax Resolution – The Length of the Process The time required to resolve a tax problem depends on the specific facts of your situation. Some matters can be resolved relatively quickly, while others may take several months or longer, especially when they involve complex tax issues, multiple years of unpaid taxes, audits, or IRS collection
- [FAQ 13 - IRS Wage Garnishment](https://dicknortontaxes.com/faq-13-irs-wage-garnishment/) - IRS Wage Garnishment – A Serious Enforcement Action The IRS has legal authority to garnish your wages through a wage levy if you have an unpaid tax debt and do not respond to its collection efforts. However, wage garnishment is generally not the first step in the collection process. Before the IRS can levy your
- [FAQ 12 - IRS/State Representation](https://dicknortontaxes.com/faq-12-irs-state-representation/) - IRS/State Representation – Taxpayers Located Outside of California As an Enrolled Agent, I am authorized to represent taxpayers before the IRS throughout the United States. My authority to practice before the IRS is federal, which means I can assist clients regardless of where they live. As a side point, I am authorized to represent taxpayers
- [FAQ 11 - Offer In Compromise](https://dicknortontaxes.com/faq-11-offer-in-compromise/) - IRS Offer In Compromise – How to Qualify An Offer in Compromise (OIC) allows some taxpayers to settle their tax debt for less than the full amount owed. While you've probably seen advertisements suggesting that "everyone qualifies," the reality is that the IRS approves Offers in Compromise only when specific eligibility requirements are met. The
- [Research Data](https://dicknortontaxes.com/research-data/) - Research Data provides links to three in depth topics: Specific Topics, Self-Help Resources, and Frequently Asked Questions (FAQ).
- [IRS & State Representation](https://dicknortontaxes.com/irs-audit-representation/) - Having a representative communicate for you with tax agencies can help avoid miscommunication and potential financial consequences.
- [Currently Not Collectible](https://dicknortontaxes.com/currently-not-collectible/) - Information regarding 'Currently Not Collectible' status: The IRS’s conclusion that a taxpayer has no current ability to pay their delinquent income taxes.
- [About](https://dicknortontaxes.com/about/) - Dick Norton was with the IRS for over 30 years. He currently provides IRS and State representation, consultation, and individual return preparation services.
- [Installment (Payment) Agreements](https://dicknortontaxes.com/installment-payment-agreements/) - The IRS offers options for paying your tax bill such as setting up an installment agreement to help manage tax debts if you face financial challenges.
- [Individual Return Preparation](https://dicknortontaxes.com/individual-return-preparation/) - I utilize top-of-the-line software (LaCerte) to ensure your returns are accurate, minimize your tax liability, and increase refunds.
- [ST_MealsBusinessEntertainment](https://dicknortontaxes.com/st_mealsbusinessentertainment/) - The deductibility of meal and entertainment expenses is a significant consideration for businesses seeking to manage their tax liabilities effectively.
- [Services](https://dicknortontaxes.com/services/) - My services include tax return preparation, tax controversy resolution, consultation, and expert witness and litigation support.
- [IRS & State Tax Resolution](https://dicknortontaxes.com/irs-state-tax-resolution/) - Understanding guidelines used by the tax agencies is crucial, empowering you to protect your income and assets, and even avoid prosecution in serious cases.
- [ST_HomeOffice](https://dicknortontaxes.com/st_homeoffice/) - Home office deductions are available for taxpayers who use their home for business. Beginning this year, there is a simpler option to calculate this use.
- [ST_EducationalCredits](https://dicknortontaxes.com/st_educationalcredits/) - Use Form 8863 to figure and claim education credits based on adjusted qualified education expenses paid to an eligible educational institution (postsecondary).
- [ST_Gifts&Inheritances](https://dicknortontaxes.com/st_giftsinheritances/) - Estate and Gift Tax are unified (integrated into one tax system). The federal Estate and Gift Tax laws and regulations impose taxes on transferring assets.
- [ST_KiddieTax](https://dicknortontaxes.com/st_kiddietax/) - The "Kiddie Tax" aims to prevent wealthy families from avoiding taxes by transferring investment income to their children, typically in lower tax brackets.
- [ST_ClaimsForRefund](https://dicknortontaxes.com/st_claimsforrefund/) - The rules for filing a refund claim with the IRS (Form 1040X or 843 for employment and other taxes) and State tax agencies (540X for CA) are straight-forward.
- [Fees](https://dicknortontaxes.com/our-fees/) - My fee schedule is broken down into four categories: Tax Return Preparation, Consultation, Representation, and Expert Witness (litigation).
- [ST_Bankruptcy](https://dicknortontaxes.com/st_bankruptcy/) - Two common types of bankruptcy for individuals are Chapters 7 (liquidation) and 13. Chapter 7 is the most common. Chapter 13 is essentially a payment plan.
- [Unfiled Tax Returns](https://dicknortontaxes.com/unfiled-tax-returns/) - This page gives you information regarding unfiled tax returns. It's a brief summary. For more information, contact me directly.
- [Tax Matters Consulting](https://dicknortontaxes.com/tax-matters-consulting/) - Contact me if you would like to speak with a Tax Resolution Specialist regarding an audit, collection notice, IRS appeal, or any other tax controversy.
- [ST_TuitionAndFeesDeduction](https://dicknortontaxes.com/st_tuitionandfeesdeduction/) - The Higher Education Tuition and Fees Tax Deduction can aid taxpayers whose income is too high for the American Opportunity or lifetime learning credit.
- [ST_TrustFundRecoveryPenalty](https://dicknortontaxes.com/st_trustfundrecoverypenalty/) - If a Corporation doesn't pay income tax withholding & withheld Social Security taxes the IRS can collect from anyone liable for the Trust Fund Recovery Penalty.
- [ST_TaxableVsNontaxableIncome](https://dicknortontaxes.com/st_taxablevsnontaxableincome/) - Taxable Income is any income that is subject to tax and must be reported. Nontaxable Income is income that is exempt from tax.
- [ST_SubstituteReturns](https://dicknortontaxes.com/st_substitutereturns/) - When a taxpayer fails to file their returns, the IRS has authority under Section 6020(b) of the Internal Revenue Code to prepare a tax return on their behalf.
- [ST_StatutoryNoticeOfDeficiency](https://dicknortontaxes.com/st_statutorynoticeofdeficiency/) - The Notice of Deficiency, often referred to as the "90-day Letter", provides taxpayers with up to 90 days to file a petition to contest a proposed deficiency.
- [ST_StatuteOfLimitations](https://dicknortontaxes.com/st_statuteoflimitations/) - The statute of limitations provides a definitive time frame within which the IRS can take actions involving assessments, issue refunds, and enforce collection.
- [ST_RetirementSaversCredit](https://dicknortontaxes.com/st_retirementsaverscredit/) - The Retirement Savers' Credit is a tax credit provided by the U.S. government to incentivize low- and moderate-income individuals to save for retirement.
- [ST_RetirementPlanFAQs](https://dicknortontaxes.com/st_retirementplanfaqs/) - Tax issues related to retirement can be confusing. I answer a number of these questions on this page. Feel free to contact me for further information.
- [ST_ResidenceSale-GainExclusion](https://dicknortontaxes.com/st_residencesale-gainexclusion/) - When homeowners sell their principal home, they can exclude up to $500,000 in capital gains. Rules by the Housing Assistance Tax Act of 2008 must be understood.
- [ST_RentalIncome&Expenses](https://dicknortontaxes.com/st_rentalincomeexpenses/) - Investing in rental properties can provide a steady stream of income and potential long-term appreciation. However, there are tax ramifications to understand.
- [ST_RecordKeepingRequirements](https://dicknortontaxes.com/st_recordkeepingrequirements/) - The IRS has guidelines and regulations for record keeping to ensure individuals and businesses maintain accurate records of their financial activities.
- [ST_Penalties](https://dicknortontaxes.com/st_penalties/) - The IRS imposes a variety of penalties on taxpayers who fail to comply with tax laws. These penalties can apply to individuals, businesses, and other entities.
- [ST_MilitaryMatters](https://dicknortontaxes.com/st_militarymatters/) - Military personnel have unique duties, expenses, and transitions. Special benefits may apply when moving to a new base, traveling to a duty station, and more.
- [ST_Liens](https://dicknortontaxes.com/st_liens/) - If you owe money to the government due to certain delinquent debts, the tax agencies can file liens that will encumber your real and personal property.
- [ST_Levies](https://dicknortontaxes.com/st_levies/) - The IRS and most state tax agencies possess the authority to levy, attach, or garnish a taxpayer’s property for failing to pay a tax liability.
- [ST_InnocentSpouse](https://dicknortontaxes.com/st_innocentspouse/) - Innocent Spouse Relief frees individuals from paying tax, interest, and penalties if their spouse improperly reported items on their joint tax return.
- [ST_HouseholdEmployeeTaxes](https://dicknortontaxes.com/st_householdemployeetaxes/) - Hiring household employees, such as nannies, housekeepers, or gardeners, comes with a set of responsibilities for the employer, particularly regarding taxes.
- [ST_HomeBasedBusinesses](https://dicknortontaxes.com/st_homebasedbusinesses/) - Running a home-based business can offer significant flexibility and potential tax benefits, but it also comes with a set of tax-related challenges.
- [ST_HobbyLosses](https://dicknortontaxes.com/st_hobbylosses/) - The IRS makes a distinction between business and hobby in order to prevent taxpayers from deducting hobby expenses to reduce their taxable income.
- [ST_HealthSavingsAccounts](https://dicknortontaxes.com/st_healthsavingsaccounts/) - The IRS issued guidance on Health Savings Accounts. Notice 2004-2 explains what HSA's are, who can establish them, and rules for contributions and withdrawals.
- [ST_ForeignAccounts](https://dicknortontaxes.com/st_foreignaccounts/) - A U.S. citizen is typically required to report all worldwide income on his federal return, regardless of which country is the income source. (Reg. § 1.1-1(b))
- [ST_Foreclosures](https://dicknortontaxes.com/st_foreclosures/) - When mortgages are not paid in full upon the transfer of real estate (foreclosures and short sales), there are tax consequences that need to be addressed.
- [ST_FlexibleSpendingAccounts](https://dicknortontaxes.com/st_flexiblespendingaccounts/) - Flexible Spending Accounts (FSAs) are a component of employee benefits, providing tax advantages for employees to save for medical and dependent care expenses.
- [ST_EmployeeVsIndContractor](https://dicknortontaxes.com/st_employeevsindcontractor/) - The classification of employee or independent contractor is a critical determination made by the IRS with significant implications for both worker and employer.
- [ST_DivorcedTaxpayers](https://dicknortontaxes.com/st_divorcedtaxpayers/) - If your name changed due to a recent marriage or divorce you want to ensure the name on your return matches the name registered with Social Security.
- [ST_Dependents](https://dicknortontaxes.com/st_dependents/) - The IRS Child and Dependent Care Credit is designed to assist working parents and caregivers with the costs associated with caring for children and dependents.
- [ST_Contributions](https://dicknortontaxes.com/st_contributions/) - Charitable contributions to qualified organizations may lower your tax bill. The IRS offers eight tips to help ensure your contributions pay off on your return.
- [ST_CollectionFinancialStandards](https://dicknortontaxes.com/st_collectionfinancialstandards/) - IRS Collection Financial Standards are integral to tax collection. Guidelines determine one's ability to pay their debt while meeting basic living expenses.
- [ST_CollectionDueProcess(CDP)](https://dicknortontaxes.com/st_collectiondueprocesscdp/) - The IRS must notify taxpayers of their right to a hearing before they can levy property. The taxpayer may then request a Collection Due Process or CDP hearing.
- [ST_CollectionAppeals(CAP)](https://dicknortontaxes.com/st_collectionappealscap/) - The CAP program gives taxpayers the right to appeal various collection actions such as liens, levies, seizures, and threat of installment agreement termination.
- [ST_ChildCareCredit](https://dicknortontaxes.com/st_childcarecredit/) - The Child and Dependent Care Credit is a tax benefit that assists working parents and caregivers with costs associated with caring for children and dependents.
- [ST_Bartering](https://dicknortontaxes.com/st_bartering/) - Small business owners may exchange goods and services, or barter. The IRS recognizes the fair market value of property or services received as taxable income.
- [ST_AutoExpenses](https://dicknortontaxes.com/st_autoexpenses/) - Auto expenses can be a significant portion of one's costs. The IRS allows for the deduction of these expenses under certain conditions.
- [ST_AttorneyFees](https://dicknortontaxes.com/st_attorneyfees/) - Deducting attorney fees on returns can significantly impact financial liability. Understanding the rules and criteria is crucial for optimizing tax obligations.
- [ST_AppealsProcess](https://dicknortontaxes.com/st_appealsprocess/) - The IRS has an administrative appeals function that enables taxpayers to have their Audit / Collection cases reviewed by Appeals or Settlement Officers.
- [ST_AlternativeMinTax](https://dicknortontaxes.com/st_alternativemintax/) - The Alternative Minimum Tax is a parallel tax system designed to ensure high-income individuals and corporations pay at least a minimum amount of tax.
- [ST_AffordableCareAct](https://dicknortontaxes.com/st_affordablecareact/) - Under the ACA, eligible taxpayers can qualify for help in purchasing health care. Lower income taxpayers can get a significant reduction in out-of-pocket costs.
- [ST_AdoptionCredit](https://dicknortontaxes.com/st_adoptioncredit/) - The Adoption Credit is a federal tax credit that offsets adoption costs. This offers financial relief by allowing parents to claim qualified expenses.
- [ST_AdministrativeAppeals](https://dicknortontaxes.com/st_administrativeappeals/) - The IRS has an administrative appeals function enabling taxpayers to have their Audit / Collection cases reviewed by Appeals Officers or Settlement Officers.
- [ST_529](https://dicknortontaxes.com/st_529/) - The 529 Plan helps families save for college expenses. It is a tax-advantaged investment plan that allows almost any adult help pay for someone’s education.
- [ST_1031](https://dicknortontaxes.com/st1031/) - The 1031 exchange is used by real estate investors in the United States. Read more to learn about this tax deferral strategy.
- [Specific Topics](https://dicknortontaxes.com/specific-topics/) - Detailed information related to a number of specific IRS and tax laws and issues. Links are provided for each individual topic.
- [Self-Help Resources](https://dicknortontaxes.com/self-help-resources/) - Resources and references to help guide you to do your own research. Numerous links are provided along with specialists in bankruptcy filing and tax law.
- [Offer In Compromise](https://dicknortontaxes.com/offers-in-compromise/) - The Offer in Compromise program provides an opportunity to settle your tax liabilities with the IRS for less than the full amount owed.
- [Engaging Our Services](https://dicknortontaxes.com/engaging-our-services/) - Clients must sign an Engagement Letter. This contract defines the nature of services, fees, terms, and mutual responsibilities between client and provider.
- [Expert Witness / Litigation Support](https://dicknortontaxes.com/expert-witness-litigation-support/) - With 30+ years experience working at the IRS in Examination, Collection, and Appeals, I offer valuable support to bolster the success of your case.
- [Contact](https://dicknortontaxes.com/contact/) - Contact Dick Norton via the form on this page, phone, email, or fax. I make every effort to return your message within 24 hours.

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