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
Divorce is never a simple matter. Couples typically have property, debts, and custody issues to consider. Taxes are often a thorny topic. If the couple filed a joint return in the past, a partner must now sever tax obligations to the other. When the separating couple owes taxes in arrears, it is particularly challenging to know where to turn for answers.
The divorce court does not view tax debt any differently than any other debt owed by the couple. The divorce attorneys include tax debts in the same category as mortgage, credit card bills, car loans, and other debts. Assets and debts are then divided between the separating spouses. Tax debt must be divided between the spouses according to state laws and the terms of the divorce settlement. Since tax debt can also seriously affect the couple after divorce, it is important to resolve it now.
Community Property States
Some states, including Alaska, Wisconsin, Arizona, Washington, California, Texas, Idaho, New Mexico, Louisiana, and Nevada, consider assets (property) and debts assumed during the marriage as community property. Conversely, property and debt acquired before marriage is the personal property... read article
For recently divorced individuals and married taxpayers who filed jointly and had but one breadwinner in the family, issues of tax debt and who might owe the IRS may cause financial problems for an innocent taxpayer. Several years ago the IRS created the "Innocent Spouse Rule," which means that a taxpayer could be relieved of his or her debts with proper application to the government for relief.
The rules guiding innocent spouse tax relief aren't simple to decipher; however, and the IRS has provided some instructions on whether submitting an innocent spouse tax form might be appropriate. Innocent spouses should remember that this rule isn't solely applicable to divorced individuals. People who are still married may also take advantage of this tax rule.
Conditions for Status as an Innocent Spouse
It will surprise no one that the IRS has put into place several conditions that determine whether an individual is eligible to become an innocent spouse. All of the following conditions must be met, in order for the IRS to approve an application under the innocent spouse rule:
1. A joint return was filed, and an understatement of tax was... read article
Many people from all walks of life can end up with unwanted attention from the Internal Revenue Service. From the average Joe to self employed professionals to officers in large corporations. Even the odd politcian here and there ends up in the spotlight for serious tax problems.Further more tax problems also come in all shapes and sizes with many causes – everything from not filling, filling incorrectly, owing back taxes, payroll tax problems or even criminal tax evasion.
The one thing troubled taxpayers have in common is not their problems but the solution. IRS Tax Lawyers. IRS tax lawyers have the knowledge and experience to get federal tax problems back under control.
It’s important to note not every tax problem is the same, not every resolution will be the same, but overall there are a few main programs tax lawyers will relay on for many cases and they include most notably the offer in compromise, innocent spouse relief, installment agreements, currently not collectable or hardship status, penalty abatement, bankruptcy protection and reasonable cause.
A skilled IRS tax attorney will know which of these programs will be the correct choice depending on the circumstances the taxpayer is in. Many people have seen... read article
Most Florida couples file their joint income tax returns. Meaning, both of them are legally held to be individually and jointly responsible for the payment of the rightful sum of taxes. The spouse who has a limited source of income is made to be held responsible in the event that the other spouse fails to pay the correct total of the due taxes. The innocent spouse is by and large the one who usually gets into default with the seizures, audits, and tax levies.
Such situation will only be averted if the married couple files a separation or a divorce. It is during these occurrences when both parties get devoid of the fact regarding the exact amount of the taxes owed by one another.
During the time of the separation or divorce, the couple is advised to file their income tax returns jointly while this results to the payment of lower amounts of taxes. The situation becomes a medium for tax indemnification. This means that neither of them is to be held up responsible for the liabilities of each other with their own tax dues. The bad... read article