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
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.
Late tax filing is extremely common. In many cases, people simply forget to file their taxes. Many people are surprised after they file a tax return and find out that they owe more than can pay. When many people find out that they have tax problems, they want to ignore them. However, your problems will only get worse if you ignore them.
The Internal Revenue Service can be very aggressive when they are pursuing collection. They are also increasing the number of audits that they do. They have a good reason for doing this. The government needs money in order to function. Most of this money comes from your income tax.
What Happens if you Have Missed Filing Your Taxes?
There are many negative things that can occur as the result of late tax filing. You could possibly be charged penalties if you do not file your tax return. Failing to file a tax return is a misdemeanor, so you could be sent to jail for up to a year. However, the IRS would rather collect the money instead of send you to... read article
If you have defaulted on your taxes, IRS will take all the necessary steps to ensure you clear your debt. After a tax lien fails to compel you to pay your overdue taxes, IRS will use a tax levy. A levy is simply the legal seizure of your assets to compensate for taxes owed.
While a tax lien is just a claim to a tax defaulter's assets, a levy gives IRS the right to seize your assets. IRS may levy your investment accounts, bank accounts, accounts receivable, social security, wages, insurance policies, pensions, and physical assets. Read on to learn about IRS property seizures.
The IRS Seizure Process
There are three steps that IRS uses when seizing taxpayer's property. The whole procedure ensures that a taxpayer has sufficient notice about IRS's intention to seize their property and has enough time to contest or appeal the tax levy. The IRS is legally required to follow these steps before seizing your property.
The first step that IRS takes when seizing property is sending a "Notice of Demand for Payment". This notice informs you about the tax assessment issues in question and demands that... read article
The Internal Revenue Service (IRS) can be very aggressive when collecting from debtors. The IRS applies certain tactics to compel the taxpayer to comply and to minimize the balance owed on a taxpayer's accounts. One of the tactics adopted by IRS for collecting from tax defaulters are the use of liens and levies. IRS can levy all the property that a taxpayer owns in an attempt to satisfy an outstanding obligation. However, there are some assets and property that IRS cannot seize or levy. The following web page will guide you on how IRS uses liens and levies, and the assets and property protected from IRS seizure.
If the IRS cannot recover overdue taxes through a lien, their next resort is to use levies. An IRS levy is the practical seizureof the assets of a taxpayer. It is the final way that taxation is enforced when all attempts at collecting taxes fail. IRS will issue tax levy notices to financial institutions and employers associated with the taxpayer.
Contesting an IRS Tax Levy
Before IRS seizes property or money, they must issue you with a notice of their... read article
It's easy to get into a habit of not filing your taxes. If you happen not to file one year because you owe money, and then the next year you do the same thing because you're afraid you'll get into trouble, the years can add up quickly, and so can the severity of the need to file. The first answer you'll get from the IRS or any accountant is to file right away! Not filing your taxes is a crime known as tax evasion and there are penalties that you can receive from delinquent filing as a result.
Why It's Serious
We've all heard that if you don't file your taxes, you could go to jail, and as unbelievable as it sounds, it is true. However, the IRS cares more about getting the money they owe and very rarely send anyone to jail unless they find blatant fraud. However, they can punish you with some costly penalties. If you haven't paid your taxes, the IRS has much more power to try to get you to comply and get your taxes paid depending on how long... read article
If you owe back taxes, the IRS has the authority to do any number of unpleasant things such as seizing your bank accounts, personal assets, future federal and state income tax refunds, and anything else that has value and thus could be sold to pay off your tax debt.
Most people who have found themselves faced with this situation have negotiated an IRS Installment Agreement under which the back taxes will be paid in monthly installments. As long as the monthly payments are made, the IRS will agree to forego any further collection efforts.
Any tax attorney will tell you that the best way to avoid further troubles with the IRS is to, of course, make your installment payments on time and in accordance with the conditions specified in your agreement. There will be times, however, when unforeseen circumstances will make it difficult for you to make your payment. The IRS is aware that you might have such a problem, and even has policies that it will follow to help you through these rough times.
For whatever reason, or reasons, if you should breach the terms of your agreement with the IRS then that agency will exercise its right to declare the installment... read article
Procrastination is a way of life for many people. For some, it's the mundane and simple annoyances that are avoided. It's washing their dirty car. It's sorting through and condensing their email inbox that's overflowing. Or maybe it's not annoying at all and it's something like catching up on their favorite tv show. For others, it tends to be more substantial of an avoidance and one that can radically change their lives.
I'm talking about procrastinating with taxes.
There is no avoiding the IRS. It's impossible. Whether you embrace this idea sooner rather than later is completely up to you. If the IRS is on your list of things to procrastinate, my advice to you is to take them off immediately.
Here are 5 ways the IRS can ruin your life if you procrastinate filing and/or paying your taxes.
1) Direct financial penalties.
First of all, penalties with the IRS are "stackable" which means one does not void the other one out. If you filed late, you get a penalty. After you file, if you pay late, you get a penalty on top of that. So on and... read article
The Internal Revenue Code (IRC) imposes taxes on U.S. citizens’ income, regardless of where in the world that income originates. It also requires reporting of some types of assets located in foreign countries. Violation of these IRC provisions can result in jail time and substantial fines. For people who find themselves out of compliance with the law, though, there is still hope. The Internal Revenue Service (IRS) has offered a number of amnesty programs to encourage self-reporting of foreign income and assets.
Offshore Voluntary Disclosure Programs
In 2009, the IRS issued its first Offshore Voluntary Disclosure Program. Under the program, taxpayers who had undisclosed foreign assets or foreign income were encouraged to come forward and make disclosures. By doing so, they generally avoided facing criminal prosecution, and they were generally able to pay a settlement amount to resolve their past legal obligations. The program was continued with some modifications in subsequent years.
By 2012, the program had reportedly brought in over $5.5 billion in tax revenue, from about 38,000 taxpayers. This revenue was pure gain for the IRS, because it is unlikely that any of it would have been collected in the absence of the amnesty program. In 2014, in an effort to... read article