Stopping a wage garnishment can be a difficult task, but the feat can often be accomplished with the help of an experienced debt relief attorney. This can even be achieved when facing tax problems in many situations, depending on the level of tax debt. Any creditor has the right to collect debt by taking the debtor to court and request a garnishment, including private or public sector creditors. The best time to address the situation is before the wage garnishment is imposed, but that is not always successful when dealing with an aggressive creditor. Even after the court order is issued, there are methods of at least reducing the strain on your personal budget. However, agencies like the Internal Revenue Service really do not want to request a wage attachment and can be easier to deal with in some cases.
Paying Off Creditors
This may not be possible for some individuals, but paying off the creditor is always the best option. When dealing with the IRS this may be the best option if they are not filing for a huge sum of back taxes. Receiving a pay off loan or selling personal assets can end the problem immediately and avoid... read article
By the time you receive a tax levy notice from the IRS, the money you owe in back taxes is pending to be forcibly obtained from your available assets as a last resort.
Your employer’s hands are tied as well, since the IRS will aggressively pursue them to collect on your unpaid debt if they fail to comply with a garnishment of your wages.
When wages are garnished, the IRS will typically draft 25 percent of your income or more. This action alone can create extreme financial hardship, especially if you’re already struggling to make ends meet. However, there are solutions that can stop a levy from taking place if you handle your situation proactively.
Ways to Stop a Levy
The simplest and fastest way to stop a tax levy from going into effect is to pay off your tax debt. Depending on how much you owe, this can be done by borrowing the funds, selling some of your assets or paying the debt off with a credit card. Unfortunately, paying off your tax debt through these methods can create more problems unless you can receive the money free and clear.
For many people, their homes are their largest and most expensive asset. In addition, for many people in the middle class their net worth is mostly tied up in the equity of their home. There are many people that have had issues with their homes over the past couple of years, however. When the housing market crash in 2007 and 2008, many people found themselves under water on their mortgages where they owed more than the home was worth. In general, when anyone is removed of their obligation on paying back a debt that amount is taxable. For example, if someone owed another person $1,000 and that was cancelled, that $1,000 would be taxable. If a person was in the 20% tax bracket, they would owe $200 on the $1,000 that was cancelled. The good news for home owners that find themselves in a bad situation on a home is that mortgage debt is generally tax exempt.
Whenever money is borrowed through legal means, a person has the responsibility to pay that debt back. However, due to a variety of circumstances people have to default on their debts all of the time. If a lender cancels a debt that is... read article
The Internal Revenue Service Website has been hacked, which has compromised the personal and financial information of thousands of people. The hackers were able to gain access to over 100,000 accounts. The Internal Revenue Service has stated that there were 100,000 other attempts made, but they were unsuccessful due to incorrect information. The agency has stated that the attacks first started in February 2015.
The criminals were able to obtain taxpayer information from other sources and use it to answer personal identity questions on the website. People's date of birth, social security information and street addresses were some of the different types of information stolen. The hackers used The Get Transcript Application to gain access to taxpayer information.
The Get Transcript Application allows people to view their tax return, wages and incomes reported to the IRS and tax account information on the IRS website. It is estimated that 23 million people used the Get Transcript Application last year in order to access their tax information.
One of the reasons that the hackers were able to use the access the Get Transcript Application was because it is relatively simple to access. In order to start the process, one must provide a valid email address... read article
2015 has introduced new tax reforms on the state level, federal level and international level. These tax reforms will impact business conduct and procedures in various ways. As long as executives remain familiar with the basic changes, conducting business as usual for 2015 through 2016 should be no sweat.
Some of the key reasons why businesses may be affected in 2015 is the government’s pressure for transparency and political members’ progressive economic projections for the coming years. Such pressures make for strategic plans and firm projections difficult for some companies. In order to remain in compliance with these reforms, hiring a law firm for business tax related purposes is essential, especially with the increase demand for documentation and reportings. Below are tips and outlines of issues that may assist leaders in strategizing and preparing for a challenging road ahead.
Increased Demand for Transparency
In late 2014, an increased pressure for transparency was put on businesses, with a demand for documentation of all transactions, and reporting obligations. These changes were put in place for the sake of putting public speculations and suspicions at ease. Companies that are in... read article
April 15 is the deadline to file your federal income tax return. It is also the deadline to pay any taxes that you owe. The Internal Revenue Service can impose penalties for people who do not file their taxes by the deadline. People who owe taxes but do not pay them by the April 15th deadline may also be required to pay a penalty.
If you choose to file your taxes late, then there are a few things that you need to know. Below is a list of some of the most important things you need to know about filing your taxes late:
1.) If you do not file your taxes by the tax filing deadline, then you may be required to pay a failure to file penalty. You may also be required to pay a failure to pay penalty if you do not pay all of your taxes by the tax filing deadline.
2.) In most cases, the failure to file penalty is higher than the failure to pay penalty. Even if you will not be able to pay your taxes by the deadline, you should still try to file by April 15. You should try to pay as much of your... read article
Management of taxes is one of the most important parts of any long term financial plan, often gets neglected for many reasons, not all of them predictable. There are times in life when at the end of the year taxes will be owed instead of getting a refund. Many people work 1099 jobs where taxes are not taken out during the year and must be accounted for before tax day. There are many other reasons why taxes could be owed, such as the sale of an investment or other taxable gain.
Many times, when a large amount of money is owed for taxes it comes as a surprise to the people that owe the taxes. For most people in the United States, having to pay several thousand dollars or more in taxes is not something that can happen with money in the bank. Thankfully there are programs provided by the Internal Revenue Service that can help taxpayers slowly pay off their tax debt over time.
Payment Plans Also Called Installment Agreements
If someone owes taxes and cannot pay them on time, there are several options available to them. First of all, it is important to know that any time taxes are owed to... read article
There was speculation after Congress passed a tax-extender bill in late December 2014 near the end of its session that in combination with budgetary cutbacks the legislation might delay taxpayer filings and Internal Revenue Service (IRS) processing. In a December 18 press conference, IRS Commissioner John Koskinen warned that congressional budget cuts might delay taxpayer refunds because fewer than the normal number of IRS agents would be available to audit returns and to assist taxpayers calling in with questions.
On December 29, 2014, the IRS said that it anticipated opening of the 2015 tax filing season as normally scheduled on January 20, 2015, when the agency would begin processing electronic and paper tax returns as usual. Commissioner Koskinen said that the tax extender legislation enacted ten days earlier on December 19 had had no effect so far on the continued updating and testing of IRS systems.
But by early January, two weeks before the start of the tax filing season, taxpayers were apprehensive. They braced for a season of misery. Commissioner Koskinen had advised agency employees that the budget revisions would reduce the scope of taxpayer services and that "realistically [IRS agents] would have no choice but to do less... read article
The rumor mill was abuzz, but alas, it was all just rumor. The Internal Revenue Service will not be issuing an emergency tax deadline extension in 2015, although there was talk of a possibility earlier in the year. The IRS announced in December 2014 that it would begin accepting tax returns on January 20, 2015 and anticipated no delays in tax returns this year. While the budget cuts to the Internal Revenue Service operating budget were fueling the possibility of delayed returns, the federal government said that everything was on running on time to begin processing tax filings.
The result of this adaptability by the revenue agency means that there will be no tax deadline extension this year. However, those who have not prepared their taxes as of now are eligible for an extension as long as they request it by midnight April 15. 2015. which is a hard deadline in most tax filing seasons. It will be the same this year, regardless of the deadline extension anticipation. While the interest on the extended taxes owed will only be 5%, that is not the case with the penalty for a late filing. The penalty can be upwards to 25% and is... read article
Tax laws are constantly changing. It is important for you to take note of these changes when you are doing your taxes. Below is a list of some of the 2015 tax law changes that you will need to know about:
Health Insurance Penalty
The Affordable Care Act requires that every person in America have health insurance. People who do not have health insurance are required to pay a tax penalty. The penalty for not having health insurance in 2014 is one percent of your total household income or $95 per person, which ever one is greater.
However, the fees are even greater in 2015. The penalty for not having health insurance in 2015 will be two percent of your total household income or $235 per person. These fees can really add up, so you want to make sure that you have health insurance so you can avoid paying those fees.
401 (K) Limits
The limit on the amount of money employees are able to contribute to their 401K plan will increase to 18,000. This is a $500 increase from 2014. The catch-up allowance for people who are over the age of 50 has also increased. People are now allowed to make an additional $6,000... read article