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Self-Employed and Owe IRS Debt in Connecticut? Here’s What You Need to Know

Being self-employed comes with many benefits, but it also means taking full responsibility for your taxes. Without an employer withholding taxes from your paycheck, it’s easy to fall behind on payments and end up owing the IRS more than you can afford. If you’re self-employed and struggling with tax debt, there are solutions available to help you get back on track.

Why Self-Employed Individuals Face Tax Trouble

Unlike traditional employees, self-employed individuals must:

• Make estimated quarterly tax payments.
• Keep track of deductions and expenses.
• Pay self-employment tax on top of income tax.

If you missed tax payments or underreported income, the IRS may hit you with penalties, interest, and aggressive collection efforts.

How to Resolve IRS Tax Debt

If you owe taxes and can’t pay in full, you have options:

• Installment Agreements: Set up a payment plan to pay your debt over time.
• Offer in Compromise: Settle your tax debt for less than what you owe.
• Penalty Abatement: Reduce or remove penalties if you qualify.
• Currently Not Collectible Status: Temporarily delay IRS collection if you’re facing financial hardship.

Get Expert Tax Relief

The IRS takes tax debt seriously, and ignoring the problem will only make it worse. If you’re self-employed and struggling with tax debt, Rappaport Tax Relief can help you find a solution that fits your financial situation.

Call (917) 488-8295 today for a free consultation to discuss your tax relief options.

by David Rappaport

I Received a CP501 Letter from the IRS. What Do I Do Now?

Receiving a letter from the IRS can be stressful, especially when it’s a CP501 notice. This letter is the IRS’s first reminder that you owe taxes, and it’s important to act quickly before the situation escalates.

What Is a CP501 Letter?

The CP501 notice is an official reminder from the IRS that you have unpaid taxes. It outlines:

• The amount you owe, including penalties and interest.
• The due date for payment.
• What will happen if you don’t respond.

If you ignore the CP501 letter, the IRS will send more notices, and eventually, they may take collection actions such as garnishing your wages or placing a lien on your property.

How to Respond

If you receive a CP501 notice, take these steps:

1. Verify the Information: Make sure the tax amount listed is correct.
2. Pay the Balance if Possible: If you can afford to pay in full, do so to avoid further penalties.
3. Explore Payment Options: If you can’t pay the full amount, you may qualify for an installment agreement or another tax relief solution.
4. Seek Professional Help: If you’re unsure how to proceed, a tax expert can help negotiate with the IRS on your behalf.

Don’t Wait – Get Help Today

Ignoring a CP501 letter can lead to serious consequences, but you don’t have to face the IRS alone. Rappaport Tax Relief can help you understand your options and take the right steps to resolve your tax debt.

Call (917) 488-8295 today for a free consultation and get the help you need.

by David Rappaport

Am I Eligible for Innocent Spouse Relief in 2025?

Many married couples file joint tax returns, which means they share responsibility for any tax debt. But what happens when one spouse is unaware of tax errors or dishonest financial decisions made by the other? The IRS provides a way out through Innocent Spouse Relief.

Understanding Innocent Spouse Relief

This program allows qualifying taxpayers to be released from tax debt that was caused by their spouse or former spouse. The IRS evaluates applications based on three key factors:

• The tax issue was solely due to your spouse’s actions, such as underreporting income.
• You had no knowledge of the tax issue when signing the return.
• Holding you responsible would be unfair under the circumstances.

How Do I Apply?

Applying for Innocent Spouse Relief requires detailed documentation and a strong case to prove eligibility. The IRS will closely review financial records, marital history, and personal circumstances before making a decision. Because the process can be complex, working with a tax professional can improve your chances of approval.

Get the Help You Need

If you're facing tax debt due to your spouse’s mistakes, you don’t have to navigate the IRS system alone. Rappaport Tax Relief has extensive experience helping clients secure Innocent Spouse Relief, ensuring they aren’t unfairly burdened with someone else’s tax issues.

Call (917) 488-8295 today for a free consultation to discuss your options.

by David Rappaport

Struggling with Tax Debt? Offer in Compromise May Be the Solution in 2025

Dealing with overwhelming tax debt can feel impossible, but there’s a way to settle for less than what you owe. The IRS’s Offer in Compromise (OIC) program is designed to help eligible taxpayers pay a reduced amount and move forward financially.

How Does an Offer in Compromise Work?

The IRS evaluates each OIC application individually, considering factors such as:

• Your income and expenses – Can you realistically afford to pay your full tax debt?
• Your assets – If selling assets or using savings isn’t an option, you may qualify.
• Your financial hardship – If paying the full amount would cause severe financial difficulties, an OIC may be accepted.

The Benefits of an Offer in Compromise

• Reduce your tax burden and settle for less.
• Stop collection actions like wage garnishments and bank levies.
• Avoid further penalties and interest from accumulating.

Why Professional Help Matters

Getting an Offer in Compromise approved is not easy—the IRS has strict guidelines and rejects most applications due to errors or lack of documentation. A tax relief expert can help:

• Evaluate whether you qualify before applying.
• Prepare a strong case with accurate financial documentation.
• Negotiate with the IRS to increase your chances of approval.

If you’re drowning in tax debt and need a way out, Rappaport Tax Relief can help you navigate the Offer in Compromise process and work toward financial freedom.

Call (917) 488-8295 today for a free consultation to explore y

by David Rappaport

Tax Relief in Westport, CT 

If you owe back taxes or are dealing with IRS penalties, you’re not alone. Many people in Westport, CT, struggle with tax debt, unfiled returns, or aggressive IRS collections. The good news is that tax relief services can help you navigate these challenges and find a solution that works for you.

What is Tax Relief?

Tax relief refers to programs and strategies designed to help taxpayers reduce or manage their tax debt. The IRS offers several options for people who are unable to pay their full tax bill, including installment agreements, penalty abatement, and settlement programs like an Offer in Compromise. The right solution depends on your financial situation and the details of your tax issue.

How Tax Relief Services Can Help

A tax relief professional can help you:

• Negotiate with the IRS to reduce penalties and interest
• Set up affordable payment plans
• Settle tax debt for less than what you owe (if you qualify)
• Stop wage garnishments and bank levies
• Protect your assets from IRS collections
• File past-due tax returns and get back into compliance

Expert Tax Relief in Westport, CT

Working with a knowledgeable tax professional can make all the difference in resolving your tax issues. With years of experience, Rappaport Tax Relief provides personalized tax solutions to help clients regain financial stability. Whether you need help stopping an IRS levy or negotiating a tax settlement, we are here to guide you every step of the way.

Call (917) 488-8295 today for a free consultation and take the first step toward resolving your tax problems.

by David Rappaport

IRS LT11 Notice – What It Means and How to Protect Yourself

Receiving an LT11 notice from the IRS is a serious matter. This letter warns that the IRS is preparing to take collection actions against you, such as levying your bank account or garnishing your wages. Understanding the implications of the LT11 and responding appropriately is essential to safeguarding your assets and financial well-being.

What Is the LT11 Notice?

The LT11 is a Final Notice of Intent to Levy and Notice of Your Right to a Hearing. It signifies that the IRS plans to seize your income or property to satisfy an unpaid tax debt. This notice is one of the last warnings before the IRS enforces aggressive collection actions.

Why Did You Receive an LT11 Notice?

You likely received this notice because:

• You have an unpaid tax debt that remains unresolved.
• The IRS has previously contacted you about the balance, but no arrangements have been made.
• The IRS intends to levy your wages, bank accounts, Social Security benefits, or other assets.

What Should You Do Next?

1. Act Quickly – You have 30 days from the date of the notice to respond before the IRS moves forward with a levy.
2. Request a Collection Due Process (CDP) Hearing – This hearing allows you to dispute the levy or propose alternative resolutions, such as an installment agreement or an offer in compromise.
3. Pay the Debt (If Possible) – Paying off the balance will prevent further enforcement actions and additional penalties.
4. Negotiate a Payment Plan – If full payment isn’t feasible, you may qualify for a structured payment plan to prevent further collection efforts.
5. Get Professional Assistance – Tax professionals can negotiate with the IRS on your behalf, help you avoid levies, and explore hardship status or debt reduction programs.

Consequences of Ignoring an LT11 Notice

If you fail to respond within the 30-day window, the IRS may proceed with asset seizures, which could result in:

• Wage garnishment
• Bank account levies
• Seizure of personal or business assets
• A negative impact on your credit score

How Rappaport Tax Relief Can Help

At Rappaport Tax Relief, we specialize in stopping IRS levies and negotiating favorable resolutions for taxpayers. If you’ve received an LT11 notice, don’t wait until it’s too late. Call us today at (917) 488-8295, and let’s work together to protect your income and assets from aggressive IRS actions.

by David Rappaport

Tackling IRS Penalties in Connecticut: How Penalty Abatement Can Help You

Receiving a penalty notice from the IRS is never easy, but you don’t have to face these challenges alone. For taxpayers in Connecticut, understanding penalty abatement could be the first step toward financial relief. David Rappaport, a tax resolution expert at Rappaport Tax Relief, explains what you need to know about IRS penalties and how you can apply for penalty abatement to reduce or eliminate them.

Common IRS Penalties That Connecticut Taxpayers Face

IRS penalties are typically assessed for:

• Late filing: Failing to file your tax return by the due date.
• Late payment: Not paying the amount you owe by the deadline.
• Underpayment of estimated tax: Failing to pay enough taxes throughout the year.

Each of these penalties can add up, increasing your overall debt and making it more difficult to resolve your tax situation.

Penalty Abatement: A Lifeline for Connecticut Taxpayers

Penalty abatement is a form of relief that allows taxpayers to have penalties reduced or eliminated. While the IRS is strict about tax rules, they also understand that unforeseen circumstances can cause people to miss deadlines or payments. Penalty abatement is designed to offer relief in such cases.

Key Qualifying Reasons for Penalty Abatement

1. First-Time Penalty Abatement
   • You may qualify if you haven’t been penalized for the past three tax years, are current with all filing requirements, and have paid any taxes due (or arranged a payment plan).
2. Reasonable Cause
   • If you can demonstrate that you missed deadlines or payments due to events beyond your control—such as a natural disaster, serious illness, or the loss of vital records—you may qualify for penalty abatement based on reasonable cause.
3. Administrative Error
   • If the IRS made an error that resulted in your penalties, you could apply for abatement to have these penalties removed.

How to Apply for Penalty Abatement

1. Evaluate Your Eligibility: Look at the type of penalty you’ve been assessed and determine whether you qualify for abatement. This could be based on first-time relief, reasonable cause, or IRS error.
2. Prepare Your Documentation: Gather all supporting evidence, such as medical records, financial statements, or proof of natural disasters, to demonstrate your case.
3. Submit Your Request: You can apply for penalty abatement by calling the IRS, submitting IRS Form 843 (Claim for Refund and Request for Abatement), or working with a tax professional to ensure the best outcome.

Why You Should Seek Professional Help

Navigating IRS procedures can be complicated, especially when dealing with penalties. A tax resolution expert like David Rappaport can guide you through the process and help you prepare a solid case for penalty abatement. From evaluating your situation to negotiating with the IRS on your behalf, having an experienced professional in your corner can increase your chances of success.

Act Now to Avoid Further Penalties

The IRS continues to accrue interest on unpaid penalties, which can significantly increase your tax debt. Taking prompt action to apply for penalty abatement could stop these penalties from growing and help you regain financial stability.

If you’re a Connecticut taxpayer dealing with IRS penalties, don’t wait to seek help. Contact David Rappaport at Rappaport Tax Relief today to explore your options for penalty abatement and get the expert assistance you need to resolve your tax situation.

by David Rappaport

Why Ignoring IRS Notices in Connecticut is a Bad Idea 

Receiving an IRS notice can be a stressful experience, but ignoring it is never the solution. At Rappaport Tax Relief, we understand the challenges that Connecticut residents face when dealing with tax issues. In this blog, we’ll explore the reasons why you should never ignore IRS notices and how we can help you navigate the process.

What Are IRS Notices?

IRS notices are official communications sent to taxpayers for various reasons, including:

• Informing you of changes to your tax return.
• Requesting additional information.
• Notifying you of unpaid taxes or penalties.

Ignoring these notices can lead to serious consequences.

The Risks of Ignoring IRS Notices

1. Increased Tax Liability: If you ignore a notice that indicates you owe additional taxes, the IRS may assess those taxes, along with penalties and interest.
2. Final Assessment: Many IRS notices come with a deadline for response. If you don’t respond within the specified time, the IRS will finalize their assessment, leaving you with little recourse.
3. Collection Actions: The IRS has the authority to initiate collection actions, including wage garnishments, bank levies, and property liens.
4. Damage to Credit: Unresolved tax issues can lead to liens against your property, negatively affecting your credit score.

How Rappaport Tax Relief Can Help

At Rappaport Tax Relief, we specialize in helping Connecticut taxpayers understand and respond to IRS notices. Here’s how we can assist:

• Personalized Review: We’ll conduct a thorough review of your notice to identify the best course of action.
• Expert Representation: Our team will communicate with the IRS on your behalf, ensuring your rights are protected.
• Timely Response: We’ll help you formulate a response strategy to meet IRS deadlines and avoid escalation.

Take Action Now

If you’ve received an IRS notice, don’t ignore it! Contact David Rappaport at Rappaport Tax Relief at (917) 488-8295 for a free consultation. Let us help you take control of your tax situation.

by David Rappaport

Understanding the CP3219A Notice: What You Need to Know in Connecticut

If you’ve received a CP3219A notice from the IRS, you’re likely feeling a mix of confusion and anxiety. At Rappaport Tax Relief in Connecticut, we understand that dealing with tax notices can be overwhelming. In this blog, we’ll explain what a CP3219A notice is, why you received it, and the steps you should take to address it.

What is a CP3219A Notice?

The CP3219A notice, also known as a Notice of Deficiency, is sent by the IRS when they believe you owe additional taxes. This notice is issued when discrepancies are found in your tax return. Common reasons for receiving this notice include:

• Unreported income.
• Incorrect deductions.
• Issues with tax credits.

Why You Shouldn’t Ignore This Notice

Ignoring a CP3219A notice can lead to serious consequences, including:

• Increased Tax Liability: If you don’t respond, the IRS will proceed with the proposed changes, and your tax liability may increase.
• Penalties and Interest: Additional penalties and interest will accrue on any unpaid amounts, making your financial situation worse.
• Enforcement Actions: The IRS may initiate enforcement actions, such as wage garnishments or bank levies, if you fail to respond.

How Rappaport Tax Relief Can Assist You

At Rappaport Tax Relief, David Rappaport and his team are committed to helping Connecticut residents navigate the complexities of tax notices. Here’s how we can help:

• Review Your Notice: We’ll carefully analyze your CP3219A notice and determine the best course of action.
• Communicate with the IRS: Our team will handle all communication with the IRS, ensuring your rights are protected.
• Develop a Response Strategy: We’ll work with you to formulate a response to the IRS, whether you agree with their findings or want to challenge them.

Get Started Today

If you’ve received a CP3219A notice, don’t delay—contact David Rappaport at Rappaport Tax Relief today at (917) 488-8295 for a free consultation. Let us help you navigate this process and find peace of mind.

by David Rappaport