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While IRS Tax Liens are not as serious as a levies, they are a warning shot across the bow and if action is not taken to satisfy the IRS, a levy or wage garnishment may be in the works. A lien will prevent a property owner from selling their home until the amount in question has been paid, or the lien has been removed by a court order. The way it works is should the property owner sell their property, the IRS will take the money owed from the amount from the sale. Obviously this will keep a property owner from choosing to sell any property with a tax lien.
New tax laws set in place in 2011 have made tax liens somewhat easier to remove. If the taxpayer owes less than $25,000 and is able to set up an installment agreement or other solution with the IRS, they may release the lien.
Below are several other ways under the law a taxpayer can have a lien released from their property. The first is obvious but unlikely to be a solution for most: Pay the total amount owed. Naturally for most taxpayers with a lien, if they could afford to pay...
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While there are many reasons to hire a local Sarasota tax attorney for tax problem resolution there are two major reasons above all others
Reason One – Confidentiality During Your Tax Case.
If you are in trouble with the IRS only an attorney can give you the attorney-client privilege. Why is the attorney-client privilege important for tax law cases? Easy - your attorney is exempt from testifying against you. That’s right, should your tax liability case go to trial, and you have chosen to work with a CPA or tax preparer for help, your CPA could actually be made to testify against you!
The very people most familiar with your tax and financial situation would be forced to spill the beans on any damaging information they may have during your trial. Don’t take this risk, only work with a certified tax attorney if the IRS is taking actions against you.
Reason Two – Expertise To Make the Right Decisions
Only a Tax lawyer will have the experience in achieving tax settlements. While a CPA may be familiar with some tax settlement programs, they will not have a full understanding of the and ins and outs of the various programs. Tax laws and...
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The internet connects people to a lot of information. Through the internet, a person can find and access information regarding Florida tax attorneys any time of the day and from any type of location. However, the internet can also be a pretty confusing resource. A person can have some difficulty trying to find the kind of information about Florida attorneys that he or she wants.
Here are some tips to help you out:
1) Know your purpose: Why are you looking for information about Florida tax attorneys? Is it mainly for research purposes or are you looking to consult with a lawyer? This will tell you what kind of information you need. There are two types of information that you can be looking for: contact information or comprehensive information. If you are doing research on Florida tax attorneys, then the second one would be the type of information you need. You should be looking at websites that offer explanations of how Florida tax attorneys can help you with various tax problems.
If, on the other hand, you want to avail of the services of a Florida tax...
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So you did not file your income tax returns for at least ten years, and here you come back into the country finding out that the IRS had been contacting you through your old good address but to no avail. Until such time that they find out of your quiet return to the country, they will automatically send for you to pay your dues for those ten years of being unable to file your income tax returns.
So what you need to do is to get your documents ready and be ready as well to hear the shock of your life. The tax you owe them may be really high enough to let your eyes roll. But you've got no choice. It is either you pay your dues or you get convicted. Which choice would you then go for?
Having failed to file your personal income tax returns can put you in real hot water with the Internal Revenue Service. If you are placed in this kind of situation, it will be best for you to hire a tax attorney. Living in Florida never deprives you of the best legal services.
Being the...
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Locating a good tax attorney in Florida requires a little bit of finesse and a large portion of resourcefulness. Here are some tips you can use:
1) Never underestimate a resource. Most people today are so caught up with the developments of technology that they rarely pay attention to existing sources of information. What you should learn about information is that it can be found everywhere. You should try to consider every type of source that you have at hand and search. If you really want to find a good Florida tax attorney, you should not just try to look for one but actually look for one!
The key to finding any type of information is to tear down any limits. You cannot just limit your search to the internet; you should try to use other sources too. Never underestimate any resource in your search for a great Florida tax attorney.
2) Know what you want. This translates to "be specific" when you are looking for a good Florida tax attorney, be sure that you know exactly what you are looking for. There are many tax attorneys out there and...
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The procedures for the foreclosure of the tax liens vary from one state to another. There are some states which do not impose too much requirements from you as the taxpayer so everything will go on quite easy. You just have to petition your country court or go through all of the application processes with the aid of a Florida tax attorney.
The proceedings really eat up too much time and too much money. But such case can be more handled with a Florida tax attorney. There are states which make things harder. Once your property is held up for foreclosure sale, there is a possibility that you will be relieved of the property since it will be awarded to the highest bidder. But of course you will receive your lien.
If you are wondering as to how much percentage of the tax liens of your property will go straight to your pocket, it is important that you consult a Florida tax attorney who knows these things.
Being equipped with the necessary knowledge and skill on liens on the tax, your Florida tax attorney can provide you with the answers to...
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Tax is a very complicated matter, especially if you are facing the IRS. At first, it would seem like the IRS cannot be reasoned with. There are people who are so intimidated by the thought of the IRS that they are unable to even question the demands that the agency makes of them. Well, if you have experienced the various intimidation tactics used by the IRS, then what you need is a good tax attorney. If you so happen to live in Florida, then here are some good reasons to hire a Florida tax attorney:
1) Taxes are based on laws Many people think that accountants have something more to do with taxes than lawyers. Not many people realize the fact that since taxes are based on laws, then lawyers can help them more than accountants can. Hiring an accountant can help you with the computation of your taxes and in the rectifying of any error that you have made. However, there's not much help that a CPA can give you beyond that. A good Florida tax attorney will be able to help you with the different...
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Locating a good tax attorney in Florida requires a little bit of finesse and a large portion of resourcefulness. Here are some tips you can use:
1) Never underestimate a resource. Most people today are so caught up with the developments of technology that they rarely pay attention to existing sources of information. What you should learn about information is that it can be found everywhere. You should try to consider every type of source that you have at hand and search. If you really want to find a good Florida tax attorney, you should not just try to look for one but actually look for one!
The key to finding any type of information is to tear down any limits. You cannot just limit your search to the internet; you should try to use other sources too. Never underestimate any resource in your search for a great Florida tax attorney.
2) Know what you want: This translates to "be specific" when you are looking for a good Florida tax attorney, be sure that you know exactly what you are looking for. There are many tax attorneys out...
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Do you owe the government taxes? Are you being audited by the Internal Revenue Services? Are you being accused of committing tax crime? If you answer affirmatively in one or more of the aforementioned queries, then you certainly needed the services of a tax attorney. How can you be certain that you need tax attorney's services? Well, you have to consider several things. First, if you think that the tax problem will not complicate things if ignored then; the answer is on the negative. However, if it will worsen when ignored, better get yourself an attorney before it's too late to do so. You might be subject to penalties or worst imprisonment. Tax penalties include fines, liens, levies, interests, and other penalties. Moreover, in criminal cases failure to pay tax or employing tax fraud can put the taxpayer to jail.
So, you have decided to hire the services of a tax attorney. How are you to choose the right one?
Remember that attorneys may either have a field of specialization or opt to become a general practitioner. Moreover, in choosing a tax attorney, be sure that he is an expert...
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Many people are wondering why there are so many lawyers running around in the country. Some share the opinion that there is entirely too much law. Whenever they encounter people such as Florida tax attorneys, they often ask themselves, "What do we need another one of those for?" To some people, a lawyer is a lawyer. In order to understand our need for Florida tax attorneys, why don't we try to see what they can do?
1) Help us with our fear Let's face it: for some people, the prospect of facing the IRS is even scarier than facing the FBI. This is because of the fact that the IRS is very good at intimidation tactics. This, after all, helps speed along a person's payment. A good Florida tax attorney can help you overcome this intimidation simply by letting you know exactly where you stand in the law.
Once a Florida tax attorney has helped you get over your fear of the IRS, you can begin to truly fix your problems. You can begin by questioning exactly why you have to pay what the IRS wants you to pay.
2) Research: ...
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Two Ways You Should NEVER Deal with IRS Problems
If you had cancer, who would you want to see first?
a) Nobody. I’ll go it alone.
b) a Nurse
c) a Doctor
d) an Oncologist
An Oncologist, right? Why? Because an Oncologist is a physician that specializes in the treatment of cancer. Along that same line of thinking, if you had a problem with the IRS, would you go it alone? Don’t believe for a second that reading a couple books, a website or a couple emails about “how to deal with the IRS” will prepare you to deal with the IRS if you owe them money.
The IRS has employees who make a career out of extracting money from people who owe taxes. They deal with it every day. They’re good at it. This is something you deal with once in a lifetime (hopefully). Face it – you’re not good at it.
These people are trained to act like your friend and make you comfortable…and then use it to get you to say something you’ll regret.
You wouldn’t “go it alone” with a deadly disease – don’t go it alone with...
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First of all, facing the IRS means that you either haven't hired an accountant, or your current accountant has done a pretty bad job of managing your finances. This means that it is already too late to hire another CPA to fix your problem. The IRS has already done the math, so you will be wasting resources if you hire another person to do it all over again. You need to focus on areas that you still need to prepare for. What you need is a competent Sarasota, Florida tax law attorney to help you with the legalities that you will be facing.
There is also the issue of client-attorney confidentiality. While a CPA can be forced to divulge any information concerning your accounts to a court, a tax law attorney is legally exempted from doing so. Remember that this confidentiality can be extremely important during trials.
Another advantage that tax attorneys have over CPAs is a deep understanding of the ambiguity of tax law. CPAs are trained to recognize something as either black or white. They are trained to categorize things very specifically and may not recognize...
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Running a company or just running the personal finances is not always going to be so easy. In fact, those who do not follow the law and pay their taxes might run into a lot of trouble with the IRS. There are many out there who will turn to a tax attorney for the right amount of help. There are numerous tips to look into before hiring an individual for the much needed job. Those are in need of various services including strategic tax planning will need to make sure that they use this guide right now. This is the best way to seek a tax attorney - hire a business tax attorney within the shortest amount of time possible. Take note of the services that are offered to individuals and how the professional will be able to help. The sooner the search begins, the sooner the taxes can be taken care of so get started.
It is important to sit down and assess the current needs. Those who are thinking of opening their own business do...
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Warning by Florida Tax Attorney Highlights Importance of Checking Details When Preparing Taxes
Taxpayers should pay attention to every detail of their tax returns, according to Florida tax attorney Mary E. King.
That's because attorney Mary E. King said a variety of simple mistakes — including math errors, absentmindedness, inaccuracies as a result of rushing to complete returns, etc. — can all lead to nightmare scenarios if the Internal Revenue Service (IRS) targets them for an audit.
"Taxpayers should prepare their returns as if they were interviewing for a job,"Mary E. King said. "Like a job applicant wanting to make a favorable impression and be honest about their background, taxpayers should prepare returns that are complete and that they know are correct."
Attorney Mary E. King suggested several tips that taxpayers should remember to assure their returns are free of mistakes that include:
Always using a calculator when preparing returns. This is important even for the simplest of additions or subtractions because a minor mistake can snowball into a larger one in terms of the final amount...
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Is it really possible to pay the IRS “pennies on the dollar” and have the rest of your tax bill forgiven? Yes – it is possible…but it’s not very likely. It’s called an Offer-In-Compromise - and it used to be the only legitimate way to negotiate an actual lowering of the amount of taxes owed to the IRS by a taxpayer…sometimes far less.
However, since the IRS has seen so much “abuse” of this particular method of tax relief in recent years, they have shown by their actions that they are less and less apt to accept an Offer-In-Compromise.
In a press release dated October 2004, the IRS stated “This program serves an important purpose. But we do warn taxpayers to watch out for unscrupulous promoters charging excessive fees to taxpayers who have no chance of meeting the program’s requirements,” said IRS Commissioner Mark W. Everson. “Taxpayers should not be duped by high-priced promises.” In fact, as of 2006, the IRS now rejects 85% of all Offers-in-Compromise.
Although an Offer-In-Compromise is one option for paying off IRS debt, it...
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When I counsel people dealing with IRS problems, I usually end up asking the one big nagging question ...“Why did you wait so long to do something about this?” Here’s the usual reply: “I thought I would end up going to jail.”
Let’s go ahead and get something straight about the IRS and prison time…
“If You’ve Accurately Filed Your Taxes You Cannot Get Sent to Jail.” If you’ve accurately filed your taxes, but you just haven’t paid them, you cannot get sent to jail. Owing the IRS money is not considered a crime.
However…Don’t be in a hurry to celebrate…By not taking action and facing your IRS debt problem, you could face any or all of the following severe consequences:
*Wage garnishment
*Seizure of your real estate
*Seizure of Social Security benefits
*Seizure of 401(k)’s, IRA’s
*Seizure of Cars/Boats/Houses
*Seizure of Accounts Receivable
*Seizure of Cash Loan Value of Your Life Insurance
*Seizure of Commissions Owed to You
If you’ve filed your taxes accurately, but you just can’t pay them…there is hope for you. There are six different ways available to pay your debt to the IRS and avoid the particularly nasty consequences mentioned above.
“You Can Go to...
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I don’t know your financial situation personally, but I would venture a guess that if you have problems paying the IRS…that you may have credit card debt problems as well.
So I certainly don’t mean to throw “fuel on the fire” of a debt problem by making the following suggestion, but I’ll throw it out there as an option and only you’ll know if it is a legitimate option for you.
Did you know that the IRS accepts Visa, Mastercard & American Express?
With credit cards, according to the IRS website “you can pay current and past due Form 1040 balances along with current year Form 940 balances and current quarter plus the three prior quarters Form 941 balances.”
You may be thinking “isn’t paying the IRS with a credit card like robbing Peter to pay Paul?”
Not exactly. First, you’re not “robbing Peter” in this scenario. If you’ve been extended enough credit by your credit card company to pay off your IRS bill, it’s apparently because you have a good enough credit rating to justify the credit card company’s risk...
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It is expected that the IRS will be more thorough in reviewing tax returns this year. It’s been rumored that tax increases will be necessary to reduce the budget deficit, but now Washington leaders are coming out and saying it.
Rep. Steny Hoyer(D-MD) said at the first of this month that increasing taxes to reduce the budget may be, “the only solution.” Hoyer also said a balanced approach is needed that “raises some revenue.”
As a result, American taxpayers will be expected to fork out more of what they earn, both during the years of the current recession and when it comes to filing their annual returns for years to come.
The Internal Revenue Service (IRS) will be even more aggressive in checking to make sure the United States Government gets every penny owed to it. The increased diligence that the IRS will employ in reviewing returns means that taxpayers will have to assure they are knowledgeable about the money that may be owed to the government.
That’s why consulting with a IRS tax attorney is important when preparing returns and in the event...
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No More Refund Anticipation Loans IRS Wipes Out the “Quickie Tax Loan” Business with New Ruling
IRS Spokesman David Stell declared that the agency shall no longer release “debt indicators” of taxpayers to tax preparation services.
Debt indicators released by the IRS are those that indicate whether the taxpayer will receive any tax refund, and if that refund would be offset by payment of delinquent taxes, student loans or child support. Tax preparers and payday loans companies use this information to process Refund Anticipation Loan (RAL) or RAC (Refund Anticipation Checks).
The usual target market for the loans are taxpayers in the lower-income bracket. Tax preparers take advantage of these individual’s need to get hold of cash quickly to process such loans. Both refund anticipation loans and refund anticipation checks are being used by taxpayers so that instead of having out-of-pocket payments, the tax preparation fees and products are paid for. The target of such loans and checks are those who have no cash-at-hand to pay for services done under tax preparation.
However, according to IRS...
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I hear varieties of this question frequently in my office. In this week’s blog, I have taken two examples from newspaper articles of examples of individuals who violated different sections of the tax code and unfortunately ended up in prison.
Former Wisconsin Restaurant Owner Receives Prison
Term for Evading Income Taxes
On February 27, 2008, in Madison, Wis., Sabi Atteyih was sentenced to 12 months plus one day in prison, to be followed by a three year term of supervised release for income tax evasion. On January 2, 2008, Atteyih pleaded guilty to evading his income taxes for 2002. While owning the Casbah Restaurant in Madison, Atteyih underreported his taxable income from the restaurant from 2002 through 2005 by $349,673 and he evaded income taxes totaling $128,938.
Minnesota Woman Sentenced for Failing to Pay Employment Taxes
On April 20, 2009, in St. Paul, Minn., Kara Kristine Sommer, of Burnsville, Minn., was sentenced to 18 months in prison and three years of supervised release for failing to pay the Internal Revenue Service (IRS) payroll taxes from employees of a...
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IRS Releases Data That Shows Nearly 3000 Millionaires Collected Unemployment In 2008
The IRS has recently released data concerning unemployment insurance claims in 2008 and the data revealed that benefits were collected by nearly 3000 individuals who are considered millionaires. Of those 3000, 806 made over 2 million and 17 made over 10 million.
How is this possible you may ask? The fact is, unemployment is an insurance program that employers contribute to, it is not a welfare program based on need.
So, regardless of your income level, if you have lost your job and your employer paid insurance benefits, you are entitled to make a claim.
It is hard to think that a person making 10 million dollars a year would bother with a $300 a week check, but every penny counts when you are unemployed.
While this may seem outrageous, these numbers are really nothing compared to the actual number of people that filed for unemployment insurance in 2008. The actual number released from the IRS has shown that a...
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Over the years as I have been representing clients who have IRS problems, the IRS has been strict in its official requirements for accepting an Offer in Compromise (OIC). However, over the past year, with the downturn in the economy, the IRS has relaxed its unofficial position on its requirements for accepting an OIC, as well as other tax debt settlement options. Therefore, I have seen more taxpayer clients who have been able to qualify for an Offer in Compromise.
Generally speaking, an Offer in Compromise is where the IRS accepts less money than the taxpayer owes to settle their outstanding liability with the IRS. The IRS will only accept an OIC when all other tax collection alternatives have been exhausted. Other IRS tax collection alternatives may be a short extension of time to pay, an installment agreement (making monthly payments until the debt is paid in full), full payment of the debt or hardship status. Hardship status is where the taxpayer is unable to pay anything against their tax liability at the present time. It is usually a temporary solution...
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Men are governed by laws not by men. Moreover, almost every aspect of your life is invaded by the laws of the land. From the disposition your properties, to the expected norms in the society and eventually to the manner of paying tax contributions, no one is considered above the law. For that reason, there are things that you need to comply and consider in order to adhere to what the law expects of you.
Tax laws may seem complicated depending on the state you are in. Sarasota, Florida tax attorneys may have different legal advice compared to a tax attorney in Mexico. This is because the tax system of different states is diverse. Tax law, which is a codified system of laws that covers government levies on certain business or economic transaction, imposes taxes. These taxes are delivered back to taxpayers by way of government projects. If you failed to do your duty as a taxpayer, you will be punished.
Tax law is a sub-discipline in law schools. They are consultative in nature however; they can be used in litigation purposes. Tax law is crucial in business...
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According to a new report by the Treasury Inspector General, the IRS has waived essentially $1.4 billion in delinquent taxes between 2002 and 2008 by failing to file federal tax liens. In order to protect its claims against delinquent taxpayers, the IRS must file a federal tax lien, which establishes the IRS’ priority among other creditors. However, in certain cases, the IRS can decide not to file a tax lien. When the IRS agent decides not to file a tax lien, they must document the taxpayer’s file to state the basis for their decision not to file the tax lien.
According to this report, the IRS agents did not document the rationale for not filing liens for an estimated 2297 taxpayers who owed $72 million in delinquent taxes. The report also found that the IRS did not file liens on closed taxpayer accounts based upon a certain dollar amount. This certain dollar amount represented taxpayer’s whose accounts were closed based upon being currently noncollectible for tax years 2002 through 2008. These taxpayers were unable to pay anything on their...
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Have you developed a false sense of security?
Maybe the IRS placed a lien against your property as a “warning shot across the bow”, but you haven’t responded.
Sure, the tax lien can ruin your credit and make it virtually impossible to sell your house, but it doesn’t necessarily put a damper on your day-to-day finances.
Besides, the fact is – a tax lien doesn’t necessarily give the IRS what they really want…the tax money you owe them.
That’s when they start getting nasty…If you’ve been notified by the IRS either over the phone or by mail that you owe them, that’s all the warning you get.
The IRS can take your money if you don’t give it to them voluntarily.
If after contact, you don’t pay them completely and voluntarily - they have the right to take every penny that you owe from them…one way or another.
They don’t have to take you to court or sue you to get their money. If they’ve sent the collection notices and you’ve refused to pay or haven’t paid in full – that’s all they need to do.
That’s when it can get ugly:
They can dip straight into your...
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Penalties and interest are adding up by the day if you haven’t paid the IRS what you owe them. And they’re adding up big-time if you haven’t filed at all.
Did You File and Not Pay?
If you did, there’s interest being compounded daily on what you owe, which is the quarterly federal short-term tax rate, plus 3%. As of this writing, the IRS is charging 8% per year.
In addition to interest, you’re also being charged a Failure-to-Pay Penalty, which is .5% of the tax owed for each month. There is no maximum for the failure-to-pay penalty. If you’re sent a number of notices from the IRS and you still don’t pay, the penalty increases to 1%.
What You Should Do If You Filed and Didn’t Pay?
The most obvious answer is to pay the tax debt.…it’s better to owe anyone other than the IRS. Why? Because the IRS has more power to collect in ‘mean and nasty’ ways than any collection agency you’ll ever deal with.
So what if you just can’t come up with the...
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Do you owe back taxes? If so, realize that you’re not alone.
Even the world’s richest and most popular people owe back taxes, too. And the IRS will get their money, regardless of who you are. Just ask Jennifer Lopez.
Here’s what El Pais, the most widely read newspaper in Spain, had to say in 2007 about singer Marc Anthony, husband of singer/actress Jennifer Lopez:
“At least three companies he owns have not paid their taxes correctly and have been told to pay $2.5 million to the state and city of New York. They will also have to pay an additional $180,000 in fines.”
So much for anyone being “above the law”. The IRS usually gets their man, eventually (even if he spends a lot of time walking down the red carpet…).
What Are Back Taxes, And Why Should You Worry About Them.
Back taxes are simply taxes that you owe that you didn’t pay when they were due.
If you’ve underpaid taxes for any reason, the balance that you owe is considered back tax....
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If the IRS places a claim on your property as a tax lien, it shows up on your credit report and can greatly damage your credit score Florida IRS Tax Attorney Mary E. King advises.
The worst part is that you may not even be aware of the tax lien until you go apply for a credit card, car loan, home equity loan or to refinance. By that point lenders are hesitant to loan you any money.
Plus, an IRS tax lien may make it very difficult to sell your house. A buyer will be reluctant to buy since the IRS lien comes with the property and becomes his problem if you don’t take care of it Attorney King adds.
If you receive a “Notice & Demand of Payment” from the IRS and you don’t pay the tax bill, you have 10 days before the IRS can begin the process of placing a lien on your property.
If you don’t respond to the “Notice & Demand of Payment”, the countdown to a lien begins. You...
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How much money do you need every week to survive?
… if you owe unpaid taxes to the IRS and they garnish your paycheck to get their money, I hope your answer to that question is “not much”…
Are you single with 2 kids (exemptions)? I hope you can live on $299.04* per week…because that’s all the IRS is going to leave in your paycheck if they garnish your wages! No kids (exemptions) to claim? The IRS will leave a whopping $168.27* in your weekly paycheck…and take the rest.
See IRS Publication 1494, Table of Figuring Amount Exempt from Levy on Wages, Salary and Other Income (Forms 668?W(c)(DO) and 668?W(c)), to determine the amount of earned income exempt from levy. I could go on and on, but I think you see my point. The IRS has already conveniently “pre-decided” how much money they will leave in your paycheck…they have a nifty little table that conveniently tells you how much you get to keep. Of course, this doesn’t take into consideration the least bit how much you need every week to pay your mortgage, your car payment, groceries...
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Are You Non-Collectible To The IRS?
One way to get out of IRS debt is to be declared “Currently Non-Collectible” (CNC) by the IRS. Note the term “Currently”…As the name implies, Currently Non-Collectible means that the IRS considers that your current financial situation makes it impossible for you to pay your taxes and they determine that they cannot collect the money from you…at least not for now.
So, in other words, being declared CNC is a potential short-term fix to your IRS problem. But, in the end, you may still have to pay the taxes you owe (plus penalties and interest) once you start making more money.
The interesting thing about being declared Currently Non-Collectible is that can last indefinitely. If the IRS monitors your future W-2’s and sees that your income has not increased by 15%-20%, your Non-Collectible Status stays “current”.
The IRS usually gives you some breathing room and reevaluates your situation after 12-18 months. If by that time you’re showing positive cash flow, you may be put on a payment plan.
However, if you are declared CNC,...
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Renting out Your Spare Room to Cover Your Bills May NOT be the Answer!
The current housing crisis means that many homeowners are considering renting their properties as an alternative to selling, or even renting out spare rooms to help meet their mortgage payments. But homeowners desperate for additional income in these tough economic times may find themselves in trouble with the Internal Revenue Service (IRS) when it comes to renting property.
Leasing one’s home (or a portion of it) to meet mortgage obligations can lead to disaster with the Internal Revenue Service (IRS) if any money collected as rent is not reported as income.
The IRS has a series of guidelines that have to be met when it comes to paying taxes on rental income and failing to properly report them. This can lead to complications that include fines, interest, and possible garnishment of wages to collect the unpaid taxes.
Anyone who rents or leases property for more than 14 days is subject to paying taxes to the IRS. Add to the equation the fact...
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Last week, lawyers for actor Wesley Snipes were in federal court in Ocala defending him on charges of tax evasion. The lawyers have argued that Snipes did not receive a fair trial due to jurors who had made up their minds about his guilt prior to deliberating on the verdict in his 2008 tax evasion case. Snipes had originally been charged with failing pay his taxes from 1998 through 2000 on earnings of approximately $38 million. Since the trial, Snipes has been free on bond.
As a general rule, taxpayers cannot go to prison for failing to pay their taxes, unless the IRS finds that they committed tax evasion in the preparation of the income taxes. It is usually only when a taxpayer fails to file their income taxes that they can go to prison for failure to file. Don’t wait until the IRS is knocking on your door!
If you have questions about a tax related issue, please call tax attorney Mary E. King to discuss your situation at (941) 906-7585....
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Penalties and interest add up by the day if you haven’t paid the IRS what you owe them. And they add up big-time if you haven’t filed at all. Every day that you put off taking care of your IRS problem only makes it worse.
Did You File and Not Pay?
If you did, there’s interest being compounded daily on what you owe, which is the quarterly federal short-term tax rate, plus 3%. As of this writing, the IRS is charging 4% per year.
In addition to interest, you’re also being charged a Failure-to-Pay Penalty, which is .5% of the tax owed for each month. There is no maximum for the failure-to-pay penalty. If you’re sent a number of notices from the IRS and you still don’t pay, the penalty increases to 1%.
What You Should Do If You Filed and Didn’t Pay?
The most obvious answer is to pay the debt. The IRS has more power to collect in ‘mean and nasty’ ways than any collection agency you’ll ever deal with. So what if you just can’t come up with the...
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Here’s a Quick Quiz……What do these people have in common: Chuck Berry, Ron Isley (of the Isley Brothers), Richard Hatch (of “Survivor” fame), Heidi Fleiss, Sophia Loren, Martha Stewart. If you answered: “they’re all celebrities.” Well, that’s partially right. If you guessed: “they’re all celebrities who went to jail on tax evasion charges.” You guessed right!
Do you know when the IRS has the option of sending you to jail? One of the first things that people ask me after I hear what their IRS problems is…“Well…what do you think? Is the IRS going to send me to jail?” That’s an easy question, really. Because the answer only really has two criteria: Did you file your taxes…or did you not file your taxes?
If you've accurately filed your taxes you cannot get sent to jail. If you've accurately filed your taxes, but you just haven't paid the tax, you cannot get sent to jail. Owing the IRS money is not...
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