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
Having an existing tax lien is one of the most distressing situations that a taxpayer can face. A tax lien is a hold on one’s personal property that the I.R.S. places to ensure that it receives a payment that a person owes. The I.R.S may issue a tax lien for a wide variety of reasons. One reason a person may have tax lien against him or her is a failure to file income taxes or pay income taxes. Income taxes for the previous year are supposed to be filed by April 15 of the following year. A taxpayer who misses the deadline and does not request an extension is at risk for a tax lien.
Other Reasons a Tax Lien May Apply
Another reason that a taxpayer may receive a tax lien is if he or she fails to pay property taxes on a home or personal property. Most property taxes are payable once per year, although policies may differ in different states. A tax lien does not necessarily mean that the I.R.S. is going to take possession of the property. However, it may implement a tax levy... read article
Many taxpayers are under the assumption that there is little they can do if they have a disagreement with the IRS. The good news is that this is simply not true. While all taxpayers have the expectation to pay the tax they owe in a timely fashion, those taxpayers also have legal rights in all of their dealings with the IRS. This is commonly called the Taxpayer Bill of Rights, and it is clearly outlined by the IRS. All taxpayers have the right to a fair and just tax system and quality service from the IRS.
The Right to Be Informed
All taxpayers have the right to be fully informed about tax law in a way that is easy for them to understand. They also have the right to be kept fully informed about tax decisions made by the IRS that affect them. This includes such things how much tax is owed and why, and the reasons why any penalties or fees are being requested. This means especially that the IRS cannot take an action without giving the taxpayer due notice of what they intend to do and why.
The IRS had one goal when it announced the Fresh Start Program in February 2011. The goal was to make the process of paying for penalties easier for individuals. Over time, the program has been expended, but the goals are still the same.
What Is The Fresh Start Program
The program combines payment installments, lien releases, penalty assistance, and a program called Offer in Compromise so that taxpayers can settle their tax debts at a cost that is lower than they owe.
How The Program Waives Tax Penalties
In the past, when individuals missed the deadline in April, they received immediate penalties and interest charges. However, unemployed taxpayers who qualify for the Fresh Start Program can have their penalties waived for several months.
The extension option is available to people who were jobless for 30 consecutive days in 2012. Self-employed taxpayers must prove that their businesses decreased by 25 percent in 2012 so that they can qualify.
People who earned over $100,000 annually and couples who earned over $200,00 annually do not qualify for an extension. In addition, individuals who had a tax balance that was higher than $50,000... read article
Audit, lien and levy are three terms used by the Internal Revenue Service (IRS) that strike fear in the hearts of American taxpayers. Tax audits are methodical inspections and reviews of taxpayer records, liens are legal actions that can be attached to property for the purpose of collecting during future transactions, and levies are actual seizures of income and assets for the purpose of settling or adjudicating tax debts.
An IRS levy can be placed on individuals or businesses. Levies are the final step of a process that typically begins with an audit or an investigation that determines that taxes should be paid. A formal IRS document titled Notice and Demand for Payment would follow; should this ultimatum go ignored, the IRS would send the taxpayer a Final Notice of Intent to Levy and Notice of Your Right to a Hearing before physically taking funds or property.
Prevention is arguably the best defense against an IRS levy, but this is not always possible for all taxpayers. Once the IRS issues a Notice and Demand for Payment, there is a very strong chance that lien or levy action will follow unless the taxpayer has adequate and proactive legal representation. This means retaining a... read article
One of the most unsettling experiences for a person is finding themselves dealing with tax issues and the Internal Revenue Service. The reality is that when a person is confronted with a tax problem and having to face the IRS, he or she does not have to go it alone. Rather, there are some qualified, experienced, hands-on attorneys who are well versed in dealing with the IRS and in defending hard working taxpayers.
n looking for the most suitable tax attorney, a person needs to not only focus on a professional with experience but a lawyer that is authorized to practice before the U.S. Tax Court. Once an attorney has been selected to represent a taxpayer, there are a number of steps that need to be taken in preparation for meeting with a the tax lawyer.
Organized Supporting Documentation
A key step in preparing to meet with a tax lawyer is pulling together all of the documentation relating to the tax matters at issue. In the final analysis, if a person wonders whether certain documents are relevant, it is best to include them in the paperwork to present to an... read article
A tax lien can be a burden. If you have a tax lien, then you may have problems selling your property or getting credit. The good news is that tax liens can be removed. Below are some of the steps that you will have to take to remove IRS tax lien:
Determine If You Qualify
You will need to determine if you qualify to have your tax lien removed. If your lien has been released because you have already paid what you owe, then you may be able to get it removed. However, even if you have not paid your entire tax debt, you may still be able to get it removed. If you owe $25,000 or less and have agreed to a direct debt installment, then you may be able to get the tax lien removed.
A direct debit installment is where the payments are automatically drafted from your account. There are other requirements that need to be met, such as successfully making three payments and not defaulting on another installment agreement.
You may also be able to remove IRS tax lien if you have filed your business ... read article
I cannot afford to pay my taxes and an extension will not help!
Ok so after preparing your return, and double checking you have been able to claim all legal deductions you find that the amount you owe is so large that even a payment extension will not allow you enough time to pay the amount. Not a pleasant situation to be in, but you certainly are not the only one to be there.
Many in this situation may put of actually filing the return because they feel there is no possible way they can deal with the tax burden they owe. As a consequence they make the situation worse by delaying any proactive action and accumulating additional interest and penalties. Or they chose the to file, and fail to pay anything because they cannot pay the full amount. In time the IRS begins collection activities including harassing phone calls, letters which can lead to a slew of problems including liens on your property, bank account levies and wage garnishment.
Fortunately again there is a way to resolve this situation without getting into further trouble with the IRS, and it has a name – the Installment Agreement.
The Installment Agreement allows a taxpayer to... read article