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
For many years, many Americans used foreign bank accounts to hide money from the IRS without fear. In an effort to crack down on this problem and ensure that American citizens pay all required taxes on their income, the IRS has recently begun suing various foreign banks and basically attempting to eliminate the offshore banking secrecy protections that have long been in place.
These efforts have led to dramatic changes that affect all Americans with bank accounts in foreign countries. Whereas your money may have been safely hidden in years past, the IRS now requires all foreign banks to provide reports on all American-owned accounts. Furthermore, it is now considered a crime to fail to report any foreign accounts and foreign income. Almost all foreign banks are now cooperating with the IRS and automatically turning over all information about American-owned bank accounts.
What to Do If You Have a Foreign Bank Account?
The legal actions the IRS has taken against numerous foreign banks have completely eroded most banking privacy rules, which means that anyone who has not reported should be worried. This not only includes those with personal offshore accounts, but also any company-held accounts... read article
The IRS has a way to help tax payers who get behind. This is called the Fresh Start Program. This program helps both individuals and businesses create a plan to settle their back taxes and move forward. The program can help a payer avoid tax liens and seizures that make it difficult for the payer to continue to live or conduct business.
Development of the program
The U.S. government began the Fresh Start program in 2008. Changes in 2012 make it even easier for taxpayers to settle old debts. For example, if the payer faces a period of unemployment, they might qualify for penalty waivers. Payers can also qualify for extensions without penalty. Users can take advantage of installment agreements and compromise programs. It's important to work with a team of skilled and experienced attorneys in order to help you choose the best option in your case.
If you owe back taxes, you may be able to arrangement for a payment plan. This is called an installment agreement. You can pay monthly amounts instead of worrying about the IRS trying to seize... read article
Attorney Mary King has helped hundreds of people work with the IRS to get their taxes problems under control. For a free 15-minute consultation, fill out the form below.
Liens are used by the government to secure back tax payments, and it is common for the federal government to file liens. The government files the lien with the county where the taxpayer resides or conducts business. After this is done, the lien goes on the person's property. It applies to both real estate assets and other assets that the person owns. When an individual's property is sold with the lien in effect, some of the money from the sale goes directly to the federal government.
The lien always goes on public record. Not only can members of the public see that the lien exists, but they can also see the amount of money that the taxpayer owed to the IRS at the time the lien was filed. Credit reporting bureaus and creditors typically view this information. A federal tax lien can be quite damaging to your credit score.
It’s almost tax season, and if you want to make yours as simple and easy as possible, you’ll want to get started on preparing your taxes well before the deadline. The 2017 tax season is also going to introduce some changes, so it’s important to be aware of those and plan accordingly. There are a few steps you can follow to make sure that filing your tax return this year goes smoothly.
Learn the New Filing Deadlines
While the filing deadline for taxes is the same for personal tax returns and many business tax returns, there are two notable deadline changes: business partnerships and C corporations.
Business partnership tax returns were previously due by April 15th, but legislation in 2015 changed that, and the new deadline is March 15th. If you have a business partnership tax return, don’t end up filing it late because you forgot about the deadline change. If your partnership isn’t run on a traditional calendar year, then you must send in your Form 1065 by the 15th day of the third month after your partnership’s year closes.
C corporation tax returns were previously due on March 15th, but are now due on... read article
During the holiday season, it's pretty common to see businesses give their employees a gift as a way of saying thank you for all that you do. The bonus here is that in return, the IRS will deduct the cost of these gifts from taxes. Before you go shop crazy, though, it's wise to look into the limits of this business gifts tax deductable. There are certain limits to what you can and can't deduct.
In this article, we're going to take a look at how the system works in order to figure out what you can and can't do when it comes to holiday gift price deductions. Let's get started by taking a look at the general rules.
The General Rules
The IRS will allow your business to deduct up to $25 for business gifts that you give to one person per year. There's no limit opn how many people you can get gifts for, just as long as the total per person is $25. That means that if you give someone a $50 present, you can only expect a $25 deduction.
If you end up giving a customer two gifts--one of $15 and one... read article
Preparing for taxes is not a business owner's favorite activity, but the right approach can make the experience flow more smoothly. Those who are new to the business world may find tax preparation intimidating, and the following suggestions will help.
Period of Accounting
The majority of businesses use the standard calendar year of January 1 to December 31 to report expenses and income. If a different fiscal year is required, the business should submit form 8716 to the Internal Revenue Service (IRS)to request a different filing schedule.
Businesses track finances either by accrual or cash. The accrual method records expenses and income as they occur with the payment being received at a later time. With the cash approach, expenses and income are recorded when they are actually paid. While either way is fine, a business with inventory will need to use the accrual system. The accrual method shows the larger financial picture, while the cash method shows only how much money a business has.
For a business to take advantage of deductions, accurate and detailed expense records need... read article
Anytime a person owes money to the IRS, this debt can be a huge drain on their life. There are many different ways in which the IRS can come after a person who owes them money. Although we should all pay our taxes, there are times in life when situations dictate our lives. There are many examples of people over the years who have wanted to pay their taxes but simply could not for various reasons. It is vital to work with an attorney that has your best interests in mind in this situation. Unlike the scam filled TV attorneys, our law firm actually has experience helping residents of Florida resolve their tax debt. If you are in a situation where you owe the IRS money, it is vital to get some professional legal advice.
Why Hire An Attorney?
IRS debt is different from typical debt that a person owes. The IRS has a lot of power to make a person's life difficult when tax debt is owed. For example, a person can have their wages garnished at work until the ... read article
These days, it is very easy to get scammed. There are even people who scam others by claiming to work for the Internal Revenue Service. Below are some examples of common IRS scams:
Internal Revenue Service Impersonation Telephone Call
Many people have been targeted by scammers who make sophisticated and aggressive phone calls. These people say that they are employed by the IRS, but they do not work for the company. They use fake IRS identification numbers and names. These people can even change their telephone number in order to make it look like the call is coming from the Internal Revenue Service.
The victims are told that they owe the IRS money, and they have to pay it right away using a wire transfer or debit card. The scammers threaten to arrest or deport people who refuse to cooperate. They also try to get people to give away their private information by promising them a refund.
If someone does not answer the phone, then they will be told that they have to call back urgently. Keep in mind that the Internal Revenue Service will never call you and demand that you immediately make a payment. They will not require you to make a... read article
If you do not file or pay your taxes, then the Internal Revenue Service has the right to seize your property, including your house, car or boat. They could also play a levy on your bank account and wages. If you have a state tax refund, then the Internal Revenue Service can place a levy on it also. Additionally, if you have a retirement account or rental income, then a levy could be placed on those things.
However, it is important to note that the Internal Revenue Service may release a levy if you are having financial difficulty. You must be able to prove that seizing your property and/or garnishing your wages will make it difficult for you to pay for your basic living expenses.
There are steps that the Internal Revenue Service must take before they place a levy on your property.
They are required by law to send you a notice demanding your payment. They are also required to send you a notice of intent to levy. Additionally, the Internal Revenue Service is required to send you a notice of your right to a hearing.
The final notice has to be sent at least 30 days before the Internal Revenue Service... read article