Owing the IRS back taxes can make you feel like you don’t have any options. But you do have your rights as a taxpayer, there is a law adopted by the IRS called the "Taxpayer Bill of Rights." Everyone has options, especially if you act quickly. Below are some tips for people who owe back taxes to the IRS.
1. Pay in Full if Possible
If you are able to do so at all, it is always in your best interest to pay the whole amount you owe in full. This is best because it will save you from having to pay hefty penalties and interest. After penalties and interest accrues, it can be even more difficult to convince the IRS to work with you.
2. Request Penalty Relief
As a taxpayer, you have the right to give the IRS more information to help back up your claim that you owe less in taxes than they are requesting. Also, you may offer information to suggest that you should be considered for penalty relief from paying the full amount due. Some reasons people qualify for this type of relief may be due to illnesses or military... read article
A tax lien affects every part of your life, but what you may not have known is that it actually can negatively affect your credit. It can cause your credit score to drop by dozens or even hundreds of points. And the effects of the lien won't go away quickly.
Tax liens can appear on your credit report for an indefinite period. However, most credit bureaus will remove them after ten years. Once the tax lien gets paid and released, it must be removed from your credit report seven years after it got initially filed.
Not every taxpayer that has a tax lien knows about it. The Notice of Federal Tax Lien, or NFTL for short, is a tool that the IRS uses to tell your creditors that you owe a tax debt. If you're not able to pay your tax debt, the IRS may file an NTFL. If you owe more than $10,000, the filing of the NTFL will be automatic.
When the NTFL gets filed, the credit reporting agencies will pick it up. Models of credit scoring don't like tax liens, and the effect on your credit scores can be similar to bankruptcy,... read article
The Internal Revenue Service (IRS), can garnish an individual's wages if he or she has a tax debt that has not been settled, similar to a creditor. However, the IRS is unique from creditors because it can garnish an individual's wages before receiving a judgment. In addition, the IRS also has the power to garnish more funds than other creditors. Fortunately for taxpayers, the IRS offers several payment options for individuals wanting to avoid wage garnishment.
What Tax Obligation Options Does the IRS Offer?
After an individual files his or her taxes, they will either owe the IRS money or be issued a tax refund. For those who owe the IRS money, there are several payment options. Although it is ideal to write a check to the IRS for the full amount owed, many individuals do not have the funds to make the full payment all at once, so these individuals will need to seek out other payment options. The IRS offers the following payment options for those not able to pay the full amount at once:
Arrange... read article
There are several ways to settle tax debt. Ignoring the problem is always a mistake. Ignoring the debt can cause penalties to rapidly increase. In addition, the interest on the tax debt is likely to increase rapidly when the debt is ignored. Here are some things that you can do if you owe money to the IRS:
1. Utilize Services Of A Tax Relief Professional
A tax relief professional can give advice that's tailored to your situation. This may help you to pay the money back in full or create a successful compromise. While this advice will cost you something, it generally pays off. Here are possible solutions that you might be able to implement either with or without the advice of a tax relief professional:
2. Installment Programs
Installment programs are the most common way to pay the IRS if you don't have the money to pay in full. Often times, installment programs allow for monthly payments that are quite reasonable.
3. Installment Program-Like Arrangements
If you aren't able to pay back the money with a traditional installment program, there is another option. Partial payment installment programs allow for smaller payments than traditional installment programs, but they... 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
It is technically titled the Patient Protection and Affordable Care Act, but it is more widely known as Obamacare. As President Barack Obama said when it became law in 2010,"Everybody should have some basic security when it comes to their health care." Since that time, the Act has undergone many changes and much in-house and between-party squabbling. In 2012, the Supreme Court gave its approval for most of the Act's provisions, but 26 states and the National Federation of Independent Business challenged the concept that a person should be required to carry insurance or pay a penalty. According to House leader and Republican John Boehner, the Act would force millions of Americans to leave their private health insurance and into a government-run plan. The House of Representatives approved the Act in late 2009, followed by the Senate in December. The Senate bill was amended and passed by the House in early 2010, with Republicans giving it zero votes.
With the passage of the Act and its assurance of becoming reality, many Americans have many questions about Obamacare, such as: How will the Affordable Health Care Act affect my tax filing and what happens if I don't have insurance?
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... read article
Paying back IRS taxes may cost Florida federal taxpayers more than they realize as a result of IRS fees and tax penalties, interest and other factors, according to Sarasota Florida tax attorney Mary E. King. It’s important taxpayers not only realize that improperly dealing with their IRS tax burdens can cause them more than they might have initially paid the Internal Revenue Service (IRS), but also understand how tax attorneys can help ease their tax burden.
A taxpayer who thinks they can escape the wrath of the IRS by simply paying taxes on a few items they neglected is likely to be in for a very unpleasant surprise. That’s because there are a series of items the IRS can go after that can create a nightmare scenario where taxpayers are concerned.
Taxpayers who do not know the best solutions in dealing with the IRS can be putting themselves at further risk. She said paying all taxes due to the IRS on time is the best way to prevent the accumulation of tax penalties and interests, thus avoiding... read article
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.