Latest news with #ClearStartTax
Miami Herald
21-07-2025
- Business
- Miami Herald
Co-Signing a Loan With IRS Debt? Clear Start Tax Reveals How Your Tax Record Can Sabotage a Family Member's Approval
Even silent tax debt can speak volumes - Clear Start Tax explains how liens, garnishments, and delinquent returns can derail co-signed loans. IRVINE, CA / ACCESS Newswire / July 21, 2025 / Many Americans agree to co-sign a loan out of love or necessity - to help a child qualify for an apartment, a partner secure a car, or a parent refinance debt. But according to Clear Start Tax, few realize that IRS debt, even when silent, can sabotage these efforts. Tax liens, garnishments, or unfiled returns can instantly derail an application or hike interest rates. "Co-signing is a financial commitment that involves trust," said the Head of Client Solutions at Clear Start Tax. "But when the IRS is involved, it becomes a liability for both people - even if only one has the tax problem." The Hidden Risk of Co-Signing While Owing the IRS Many people assume tax debt is personal and private. But when an individual co-signs a loan or rental agreement, their creditworthiness - including tax-related red flags - becomes part of the approval process. Financial institutions and landlords often pull public records that reveal IRS liens, missed tax filings, or ongoing wage garnishments. Clear Start Tax identifies several common issues that can affect co-signed applications: Federal Tax Liens - These appear on public credit reports and can block loan approvals or lead to automatic Garnishments - If the IRS is already taking part of your paycheck, lenders may view your income as unstable or Returns - Missing tax filings can stall mortgage applications or trigger compliance checks during Installment Agreements - While better than default, these still appear in financial disclosures and may reduce your debt-to-income ratio. Why IRS Problems Affect the Person You're Helping Even if the primary borrower has excellent credit and income, the presence of an at-risk co-signer can undermine the entire application. In joint or co-signed scenarios, both parties are evaluated, and both are considered liable. "We've seen parents unintentionally derail a child's first mortgage because of an unresolved tax lien," said the Head of Client Solutions. "Most don't realize until they're sitting at a closing table - and it's too late." Clear Start Tax's Recommendations Before You Co-Sign To avoid costly surprises, Clear Start Tax urges individuals to do a financial checkup before agreeing to co-sign. That includes reviewing IRS status as well as standard credit metrics. Here's what they suggest: Request an IRS account transcript to check for missing returns or for active liens using free public record an IRS wage and income transcript to confirm all filings are up to a tax resolution expert if there is existing debt, pending notices, or active all financial risks openly with the person asking for your signature. Fresh Start Options for Co-Signers With IRS Debt Having tax debt on record doesn't automatically disqualify someone from co-signing, but resolving it beforehand is critical. Clear Start Tax assists individuals with IRS debt who plan to co-sign loans, helping them: Remove or subordinate liens that interfere with mortgage up or renegotiate payment plans to avoid garnishments and show positive back tax returns quickly to meet lender documentation Offers in Compromise to reduce the total debt and clean the record long-term "We've seen families get blindsided at the final step of a loan process - all because of a tax lien the co-signer forgot about," said the Head of Client Solutions. "These issues are solvable, but they need attention before you sign anything." About Clear Start Tax Clear Start Tax is a full-service tax liability resolution firm that serves taxpayers throughout the United States. The company specializes in assisting individuals and businesses with a wide range of IRS and state tax issues, including back taxes, wage garnishment relief, IRS appeals, and offers in compromise. Clear Start Tax helps taxpayers apply for the IRS Fresh Start Program, providing expert guidance in tax resolution. Fully accredited and A+ rated by the Better Business Bureau, the firm's unique approach and commitment to long-term client success distinguish it as a leader in the tax resolution industry. Need Help With Back Taxes? Click the link below: 710-3533 Contact Information Clear Start TaxCorporate Communications Departmentseo@ 535-1627 SOURCE: Clear Start Tax
Indianapolis Star
18-07-2025
- Business
- Indianapolis Star
The IRS Is Watching Social Media - Clear Start Tax Warns Creators About the Risks of Monetized Content
Clear Start Tax breaks down how income from platforms like TikTok, YouTube, and Instagram can trigger audits if not reported correctly. IRVINE, CA / ACCESS Newswire / July 18, 2025 / As more Americans turn to social platforms for income, the IRS is ramping up scrutiny of digital earnings like never before. According to Clear Start Tax, creators who earn money from TikTok, YouTube, Instagram, Twitch, and other platforms may unknowingly trigger IRS scrutiny, especially if they don't report sponsorships, tips, or affiliate income properly. 'Social media income is taxable – no matter how casual the content,' said the Head of Client Solutions at Clear Start Tax. 'The IRS now receives 1099s from most creator platforms. If your return doesn't match what they see, you could get flagged.' Common Income Streams the IRS Tracks While some digital entrepreneurs still see their content earnings as a casual side hustle, the IRS treats it as self-employment income. What many don't realize is just how widely their income is reported – and which sources are most commonly flagged. Digital earnings are now more visible due to enhanced IRS data-matching tools and the mandatory tax forms issued by content platforms. Clear Start Tax explains which revenue streams often get creators into trouble: Brand deals or sponsorships – Paid collaborations are reportable income, even if compensated in free products. YouTube, Twitch, or TikTok payouts – often reported via Form 1099-NEC or 1099-K issued by the platform. Affiliate links or referral bonuses – Whether through Amazon, Linktree, or custom brand deals, all commissions must be reported. Fan donations and tips – Payments through platforms like Patreon, Ko-fi, or Venmo are still taxable, even if labeled 'support.' Merchandise and digital product sales – Sales income is taxable and may trigger additional obligations like self-employment taxes or estimated payments. IRS Matching & 1099-Ks: Why Reporting Errors Trigger Notices Starting in 2025, digital platforms must issue 1099-K forms for creators who earn $600 or more – a drastic shift from the old $20,000 threshold. These forms are shared with the IRS and automatically matched against tax returns. If the IRS sees a discrepancy, it may trigger: 'The IRS is using algorithms and AI to flag unreported digital income – and creators are getting caught off guard,' said the Head of Client Solutions. 'Even small streams of income can add up fast.' How Creators Can Stay Compliant in 2025 With growing IRS oversight of online income, digital creators need to approach their finances like a business. That means keeping thorough records, setting aside money for taxes, and understanding how self-employment rules apply, even for part-time or side-hustle content. Clear Start Tax recommends content creators take proactive steps to avoid tax trouble: Track all payments from platforms, sponsors, and affiliate programs Keep receipts for business expenses like equipment, travel, or software Use separate accounts for business and personal finances File accurate self-employment returns, including Schedule C and SE Make quarterly estimated payments to avoid penalties Fresh Start Relief for Creators With IRS Debt Falling behind on taxes can happen quickly, especially when income is irregular and self-managed. Fortunately, even with growing IRS debt, creators still have strong options for resolving what they owe through the Fresh Start Program. Through the IRS Fresh Start Program, Clear Start Tax helps creators: Apply for affordable payment plans Settle for less than owed with an Offer in Compromise Remove penalties and interest for qualifying hardship cases By answering a few simple questions, taxpayers can find out if they're eligible for the IRS Fresh Start Program and take the first step toward resolving their tax debt. 'We've seen creators who underestimated how quickly side income adds up – and ended up owing thousands,' said the Head of Client Solutions. 'Tax debt doesn't mean you've failed – but ignoring it can make recovery harder.' About Clear Start Tax Clear Start Tax is a full-service tax liability resolution firm that serves taxpayers throughout the United States. The company specializes in assisting individuals and businesses with a wide range of IRS and state tax issues, including back taxes, wage garnishment relief, IRS appeals, and offers in compromise. Clear Start Tax helps taxpayers apply for the IRS Fresh Start Program, providing expert guidance in tax resolution. Fully accredited and A+ rated by the Better Business Bureau, the firm's unique approach and commitment to long-term client success distinguish it as a leader in the tax resolution industry. Need Help With Back Taxes? Click the link below: (888) 710-3533 Contact Information Clear Start Tax Corporate Communications Department seo@ (949) 535-1627 SOURCE: Clear Start Tax View the original press release on ACCESS Newswire
Miami Herald
16-07-2025
- Business
- Miami Herald
What the IRS Really Knows About Your Income in 2025 - Clear Start Tax Reveals How to Stay Ahead of Surprise Tax Bill
IRS tech tools are smarter than ever - Clear Start Tax explains how income mismatches trigger audits, and what taxpayers can do to stay compliant. IRVINE, CA / ACCESS Newswire / July 16, 2025 / With the IRS expanding its data-matching capabilities through advanced systems like the Information Returns Processing (IRP) platform, taxpayers are finding themselves blindsided by CP2000 notices, audits, or unexpected tax bills, sometimes months after filing. According to Clear Start Tax, understanding how the IRS cross-checks income data in 2025 is essential to staying ahead of costly surprises. "The IRS doesn't need to guess - they already have your 1099s, W-2s, and even crypto reports before you file," said the Head of Client Solutions at Clear Start Tax. "Most IRS notices come from mismatches, not criminal intent. But if you ignore them, they can escalate fast." How the IRS Sees Your Income - Before You Even File Contrary to popular belief, the IRS doesn't wait for an audit to catch mistakes - most income mismatches are flagged automatically. The IRS's Information Returns Processing (IRP) system aggregates data from countless sources, comparing it against your tax return behind the scenes. This means the IRS often knows about your income, even if you forget to report it. The IRP system pulls in data from: W-2s from employers1099 forms from banks, brokerages, and gig platformsSSA and unemployment recordsCryptocurrency exchange reports (via Form 1099-DA, coming soon)Mortgage and insurance statementsForeign bank account data (via FATCA agreements) These records are automatically compared against your tax return. If a mismatch appears, a CP2000 notice - or worse, an audit flag - can be triggered without warning. CP2000 Notices Are the First Warning Sign A CP2000 notice is often the first time a taxpayer learns the IRS found a mismatch in their income reporting. It's not an audit - yet - but it carries serious consequences if ignored. The IRS uses these notices to propose changes to your return, often with added taxes, interest, and potential penalties. According to Clear Start Tax, the most common triggers for CP2000 notices in 2025 include: Missing or incorrect 1099-NEC or 1099-K gig incomeReporting investment income incorrectly (e.g., selling crypto without basis data)Overlooking unemployment or early retirement withdrawalsFiling with outdated employer informationOmitting foreign income or failing to disclose foreign accounts "In 2024, the IRS issued over 11 million CP2000 notices," added the Head of Client Solutions. "It's one of their most common enforcement tools - and most people don't even know what it is until they get one." Avoid Surprises by Matching Records Before the IRS Does Once the IRS has flagged your return, it becomes much harder to negotiate or correct errors. That's why Clear Start Tax encourages taxpayers to stay one step ahead by verifying all income sources and tax documents before they file. This proactive approach can prevent costly notices and reduce the risk of enforcement actions. Steps Clear Start Tax recommends include: Reconciling all 1099, W-2, and third-party data before filingRequesting wage and income transcripts from the IRSAmending prior-year returns with missing incomeResponding promptly and professionally to CP2000 or Letter 6173 noticesExploring relief options if penalties or balances are already accruing By answering a few simple questions, taxpayers can find out if they're eligible for the IRS Fresh Start Program and take the first step toward resolving their tax debt. Fresh Start Program Offers Relief - Even After a Notice For those who have already received a CP2000 notice or now owe tax due to underreported income, you still have options. The IRS Fresh Start Program helps taxpayers reduce, settle, or restructure their debt. Clear Start Tax helps clients determine eligibility and guides them through each step of the resolution process. Depending on a taxpayer's financial situation, the program may offer: Payment plans based on current ability to payReduction or removal of penalties and interestSettlement for less than the full amount owed through an Offer in Compromise "Even if you've made a mistake, there's a path forward," said the Head of Client Solutions. "What matters is responding early - and getting the facts straight before the IRS takes further action." About Clear Start Tax Clear Start Tax is a full-service tax liability resolution firm that serves taxpayers throughout the United States. The company specializes in assisting individuals and businesses with a wide range of IRS and state tax issues, including back taxes, wage garnishment relief, IRS appeals, and offers in compromise. Clear Start Tax helps taxpayers apply for the IRS Fresh Start Program, providing expert guidance in tax resolution. Fully accredited and A+ rated by the Better Business Bureau, the firm's unique approach and commitment to long-term client success distinguish it as a leader in the tax resolution industry. Need Help With Back Taxes? Click the link below: 710-3533 Contact Information Clear Start TaxCorporate Communications Departmentseo@ 535-1627 SOURCE: Clear Start Tax
Miami Herald
14-07-2025
- Business
- Miami Herald
Job Loss Can Trigger IRS Debt - Clear Start Tax Explains How Unemployment, 401(k) Withdrawals, and Gig Work Increase Your Tax Liability
Clear Start Tax breaks down the hidden tax risks of sudden income changes - and how to recover before penalties build up. IRVINE, CA / ACCESS Newswire / July 14, 2025 / In a time of ongoing layoffs, side gigs, and economic uncertainty, many Americans are finding themselves hit with unexpected tax bills, often months after their financial crisis. According to Clear Start Tax, job loss doesn't just strain household income - it can create IRS debt from unreported unemployment income, early 401(k) withdrawals, and untracked freelance or gig earnings. "People are shocked when they owe the IRS after a year of financial hardship," said the Head of Client Solutions at Clear Start Tax. "But job loss often leads to survival-based choices that trigger tax issues down the line. We help people correct those filings and get back on track." How Job Loss Can Lead to IRS Debt Many Americans assume that because they weren't working full-time, they won't owe much - or anything - in taxes. But the reality is that many forms of income during unemployment are taxable, and without proper withholding or planning, a bill can build up quickly. Clear Start Tax identifies the most common sources of unexpected IRS debt after job loss: Unemployment Benefits - These are fully taxable at the federal level, yet often under-withheld.401(k) or IRA Withdrawals - Early withdrawals (before age 59½) typically carry a 10% penalty plus regular income Gig, or Contract Work - Without employer withholding, taxpayers are responsible for their own income and self-employment Quarterly Payments - Independent workers or those with side gigs must estimate and pay taxes every quarter, or face penalties. "In tough times, people do what they must to stay afloat - whether that's taking from retirement or picking up gig work," said the Head of Client Solutions at Clear Start Tax. "But without the right tax planning, those decisions can come back as unexpected IRS debt." IRS Notices Are Increasing - Take Action Before It's Too Late When taxes go unpaid or underreported, the IRS often responds with letters like CP14 (balance due), CP2000 (underreported income), or Intent to Levy notices. These letters can look intimidating, but they're also an opportunity to fix the issue before it escalates. According to the IRS, more than 10 million taxpayers received CP14 notices in 2024 alone, many tied to misreported unemployment and self-employment income. Tax experts at Clear Start Tax recommend: Reviewing all income sources - including unemployment, withdrawals, and side gigsGathering records from payment apps, gig platforms, and retirement account statementsAmending prior-year returns if income was missed or misclassifiedResponding promptly to IRS notices, especially if you can't pay the full amountExploring relief options to reduce penalties or negotiate a settlement The IRS Fresh Start Program Can Offer a Path Forward Taxpayers who are struggling financially may qualify for IRS Fresh Start relief, which can help reduce or settle their tax debt. Clear Start Tax works with clients to evaluate eligibility and build a customized case based on income, expenses, and current hardship. The program is designed to help taxpayers in hardship situations. Depending on eligibility, it may provide: Payment plans based on current ability to payReduction or removal of penalties and interestSettlement for less than the full amount owed through an Offer in Compromise By answering a few simple questions, taxpayers can find out if they're eligible for the IRS Fresh Start Program and take the first step toward resolving their tax debt. Don't Let a Difficult Year Turn Into Long-Term IRS Trouble Clear Start Tax emphasizes that it's never too late to take action. Whether the debt came from job loss, side income, or early retirement withdrawals, there are programs available to help people rebuild financially and avoid further IRS consequences. "We've helped people who thought they were ruined financially after losing a job or draining a retirement account," said the Head of Client Solutions. "With the right plan, it's possible to reduce what you owe and rebuild financially." About Clear Start Tax Clear Start Tax is a full-service tax liability resolution firm that serves taxpayers throughout the United States. The company specializes in assisting individuals and businesses with a wide range of IRS and state tax issues, including back taxes, wage garnishment relief, IRS appeals, and offers in compromise. Clear Start Tax helps taxpayers apply for the IRS Fresh Start Program, providing expert guidance in tax resolution. Fully accredited and A+ rated by the Better Business Bureau, the firm's unique approach and commitment to long-term client success distinguish it as a leader in the tax resolution industry. Need Help With Back Taxes? Click the link below: 710-3533 Contact Information Clear Start TaxCorporate Communications Departmentseo@ 535-1627 SOURCE: Clear Start Tax
USA Today
14-07-2025
- Business
- USA Today
Job Loss Can Trigger IRS Debt - Clear Start Tax Explains How Unemployment, 401(k) Withdrawals, and Gig Work Increase Your Tax Liability
Clear Start Tax breaks down the hidden tax risks of sudden income changes – and how to recover before penalties build up. In a time of ongoing layoffs, side gigs, and economic uncertainty, many Americans are finding themselves hit with unexpected tax bills, often months after their financial crisis. According to Clear Start Tax, job loss doesn't just strain household income – it can create IRS debt from unreported unemployment income, early 401(k) withdrawals, and untracked freelance or gig earnings. 'People are shocked when they owe the IRS after a year of financial hardship,' said the Head of Client Solutions at Clear Start Tax. 'But job loss often leads to survival-based choices that trigger tax issues down the line. We help people correct those filings and get back on track.' How Job Loss Can Lead to IRS Debt Many Americans assume that because they weren't working full-time, they won't owe much – or anything – in taxes. But the reality is that many forms of income during unemployment are taxable, and without proper withholding or planning, a bill can build up quickly. Clear Start Tax identifies the most common sources of unexpected IRS debt after job loss: Unemployment Benefits – These are fully taxable at the federal level, yet often under-withheld. 401(k) or IRA Withdrawals – Early withdrawals (before age 59½) typically carry a 10% penalty plus regular income tax. Freelance, Gig, or Contract Work – Without employer withholding, taxpayers are responsible for their own income and self-employment taxes. Missed Quarterly Payments – Independent workers or those with side gigs must estimate and pay taxes every quarter, or face penalties. 'In tough times, people do what they must to stay afloat – whether that's taking from retirement or picking up gig work,' said the Head of Client Solutions at Clear Start Tax. 'But without the right tax planning, those decisions can come back as unexpected IRS debt.' IRS Notices Are Increasing – Take Action Before It's Too Late When taxes go unpaid or underreported, the IRS often responds with letters like CP14 (balance due), CP2000 (underreported income), or Intent to Levy notices. These letters can look intimidating, but they're also an opportunity to fix the issue before it escalates. According to the IRS, more than 10 million taxpayers received CP14 notices in 2024 alone, many tied to misreported unemployment and self-employment income. Tax experts at Clear Start Tax recommend: Reviewing all income sources – including unemployment, withdrawals, and side gigs Gathering records from payment apps, gig platforms, and retirement account statements Amending prior-year returns if income was missed or misclassified Responding promptly to IRS notices, especially if you can't pay the full amount Exploring relief options to reduce penalties or negotiate a settlement The IRS Fresh Start Program Can Offer a Path Forward Taxpayers who are struggling financially may qualify for IRS Fresh Start relief, which can help reduce or settle their tax debt. Clear Start Tax works with clients to evaluate eligibility and build a customized case based on income, expenses, and current hardship. The program is designed to help taxpayers in hardship situations. Depending on eligibility, it may provide: Payment plans based on current ability to pay Reduction or removal of penalties and interest Settlement for less than the full amount owed through an Offer in Compromise By answering a few simple questions , taxpayers can find out if they're eligible for the IRS Fresh Start Program and take the first step toward resolving their tax debt. Don't Let a Difficult Year Turn Into Long-Term IRS Trouble Clear Start Tax emphasizes that it's never too late to take action. Whether the debt came from job loss, side income, or early retirement withdrawals, there are programs available to help people rebuild financially and avoid further IRS consequences. 'We've helped people who thought they were ruined financially after losing a job or draining a retirement account,' said the Head of Client Solutions. 'With the right plan, it's possible to reduce what you owe and rebuild financially.' About Clear Start Tax Clear Start Tax is a full-service tax liability resolution firm that serves taxpayers throughout the United States. The company specializes in assisting individuals and businesses with a wide range of IRS and state tax issues, including back taxes, wage garnishment relief, IRS appeals, and offers in compromise. Clear Start Tax helps taxpayers apply for the IRS Fresh Start Program, providing expert guidance in tax resolution. Fully accredited and A+ rated by the Better Business Bureau, the firm's unique approach and commitment to long-term client success distinguish it as a leader in the tax resolution industry. Need Help With Back Taxes? Click the link below: (888) 710-3533 Contact Information Clear Start Tax Corporate Communications Department seo@ (949) 535-1627 SOURCE: Clear Start Tax View the original press release on ACCESS Newswire
