IRS Form 1040 Schedule J "Income Averaging for Farmers and Fishermen" Explained
Schedule J (Form 1040), Income Averaging for Farmers and Fishermen, lets people in farming or commercial fishing elect to have part of this year's income taxed at the rates that applied in the three…
IRS Form 1040 Schedule H "Household Employment Taxes" Explained
Schedule H (Form 1040), Household Employment Taxes, is how you report and pay Social Security, Medicare and federal unemployment taxes for a household employee, such as a nanny, housekeeper,…
IRS Form 12153 "Request for a Collection Due Process or Equivalent Hearing" Explained
IRS Form 12153, Request for a Collection Due Process or Equivalent Hearing, is how you ask the IRS Independent Office of Appeals for a hearing after the IRS files a federal tax lien or issues a final…
IRS Form 12509 “Innocent Spouse Statement of Disagreement” Explained
IRS Form 12509, Innocent Spouse Statement of Disagreement, is the form you use to appeal the IRS's preliminary decision on a request for innocent spouse relief. It isn't a general appeal form for…
Internal Revenue Code (IRC) Section 6321 "Federal Tax Liens on Real Estate" Explained
Internal Revenue Code Section 6321 creates the federal tax lien: the government's legal claim against all of your property and rights to property when you owe federal tax. That includes real estate,…
Internal Revenue Code (IRC) Section 61 "Debt Forgiveness" Explained
When a lender forgives or cancels a debt you owe, the IRS generally treats the canceled amount as taxable income. Internal Revenue Code Section 61(a) lists "income from discharge of indebtedness" as…
Internal Revenue Code (IRC) Section 6654 "Estimated Taxes" Explained
Internal Revenue Code Section 6654 imposes a penalty on individuals who don't pay enough tax during the year through withholding and estimated tax payments. If you're self-employed, have significant…
IRS Automobile Tax Deductions Explained
If you use a car, van, pickup or SUV for business, you can deduct the business portion of its cost. The IRS offers two methods, the standard mileage rate and actual expenses, and either way you need…
IRS 1040 Schedule 2 Form "Additional Taxes" Explained
Schedule 2 (Form 1040), Additional Taxes, reports taxes that don't fit on the main Form 1040, including self-employment tax, the alternative minimum tax, and the net investment income tax. If you're…
IRS Form 911 "Request for Taxpayer Advocate Service Assistance" Explained
IRS Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), asks the Taxpayer Advocate Service (TAS) to step in when an IRS problem is causing you…