The IRS has put together important tax tips for those who have sold or are about to sell their home. If you have a gain from the sale of your main home, you may qualify to exclude all or part of that gain from your income. Here are ten tips from the IRS to keep in mind when selling your home.

In general, you are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale.

If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).

You are not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home.

If you can exclude all of the gain, you do not need to report the sale on your tax return. More on Important Tax Tips When Selling Your Home

There are many taxpayers who owe taxes and having difficulty paying the tax all at once. The IRS has a number of ways for people to pay their back taxes.

The IRS has initiated an effort to help individuals and businesses meet their tax obligation with new policies to help taxpayers pay back taxes and avoid liens.

Here are important tips for taxpayers who owe taxes to the IRS.

1. Get a loan to pay your tax obligation.
   The best tax tip for those who owe taxes is to get a loan to pay the entire tax obligation. Paying the tax debt in full is better than making installment payments to the IRS.
2. Request additional time to pay your tax debt.
   Taxpayers can request additional time to pay their tax through the Online Payment Agreement application at www.irs.gov or by calling 800-829-1040.
3. Pay off the tax debt with credit cards.
   The interest on a credit card may be lower than the interest and penalties imposed by the Internal Revenue Service.
4. Pay the tax balance by Electronic Funds Transfer.
   To pay using electronic funds transfer, use the Electronic Federal Tax Payment System by either calling 800-555-4477 or using the online access at .
5. Request an Installment Agreement to settle your tax debt.
   You can request an installment agreement if you are unable to pay the tax in full. The agreement is between you and IRS to pay the tax owed in monthly installments.
6. Request an Online Payment Agreement.
   If you owe $25,000 or less in combined tax, penalties and interest, you can request an installment agreement using the Online Payment Agreement application at www.irs.gov.
7. Request an Installment Agreement by mail.
   You can complete and mail an IRS Form 9465, Installment Agreement Request, along with your bill in the envelope you received from the IRS. The IRS will inform you (usually within 30 days) whether your request is approved, denied, or if additional information is needed.
8. Is your tax debt more than $25,000? Request an Installment Agreement.
   File a Collection Information Statement If you owe more than $25,000 in taxes. You may still qualify for an installment agreement if you owe more than $25,000, but you are required to complete a Form 433F, Collection Information Statement, before the IRS will consider an installment agreement.
9. Beware of User Fees.
   If an installment agreement is approved, a one-time user fee will be charged. The user fee for a new agreement is $105 or $52 for agreements where payments are deducted directly from your bank account. For eligible individuals with lower incomes, the fee can be reduced to $43.
10. Check your withholding allowance.
    Taxpayers who have a balance due may want to consider changing their W-4, Employee’s Withholding Allowance Certificate, with their employer. A withholding calculator at www.irs.gov can help taxpayers determine the amount that should be withheld.

For more information about the Fresh Start initiative, installment agreements and other payment options, or for more tax tips, visit www.irs.gov or call 800-TAX-FORM (800-829-3676).

source: irs.gov

Do you owe taxes but don’t have the money? Are you afraid of the tax trouble it will cause? Not sure what to do about this tax problem? Before you panic and worry yourself to death, know there are options available to address this tax situation. Be forewarned, not choosing an option and avoiding the tax issue could result in the IRS filing a Federal Tax Lein against you.

Here are 10 tax tips from the IRS for taxpayers who can’t pay taxes in full:

1. The IRS strongly encourage taxpayers to pay as much of the tax as possible. This will minimize the tax liabilities because the amount of interest and penalties owed will be less.
2. Each taxpayer’s situation is different, but some may qualify for a tax extension, a temporary delay, a payment (installment) agreement or an Offer in Compromise to satisfy the tax debt.
3. Taxpayers who need more time to pay the full amount should contact the IRS immediately about the tax problem using the phone number or mailing address printed on your tax bill.
4. A good tax tip is to consider getting a loan from a bank or finance company. The interest and fees will be lower than the interest and tax penalties imposed by the Internal Revenue Service.
5. Taxpayers who can’t pay the full amount of the tax could qualify for additional time, up to 120 days, to pay the tax debt in full. The advantage of this tax payment arrangement is that there is no fee and minimizes the interest and tax penalties.
6. Taxpayers who can’t afford to pay their taxes within 120 days should consider an installment agreement. There is a one-time fee of $105, an additional fee of $53 for direct deposit.
7. To apply for an installment agreement you can use the Online Payment Agreement application available on the IRS website; file a Form 9465, Installment Agreement Request; or call the IRS at the telephone number shown on your bill.
8. Even if you set up an installment agreement, the IRS may still file a Notice of Federal Tax Lein to secure the government’s interest until you make the final payment.
9. Taxpayers with serious financial hardships and limited income may be able to settle their tax liabilities for less than the full amount owed through an Offer in Compromise with the IRS. But be aware, if the IRS believes you could settle your tax debt in a lump sum or with payments, chances are you won’t qualify.
10. The top tax tip for taxpayers who can’t pay the full amount of taxes is to always respond to an IRS notice. If you disregard or fail to respond to the IRS notice, and do not make payments arrangements to pay your tax liabilities, the IRS is entitled to take collection action.

Taxpayers who can’t pay their taxes in full should heed the tax tips outlined above. The worst action a taxpayer could make is to avoid the issue altogether. Even though it’s a hard thing to do, call the IRS and arrange a tax payment arrangement to pay off your tax liabilities.

More information on the collection process is available at http://www.irs.gov.

Source: irs.gov