Author: Rick Young
Source: articledashboard.com
Most taxpayers have already filed their income tax returns. But for the more than 8.5 million Americans who have filed for an automatic extension, the deadline is just around the corner.
From needing additional assistance to not having all the proper documents, there are various reasons why people ask for extensions, of no later than Oct. 15, on filing their taxes. But whatever the reason, you must know what this extension entails.
"It is important to remember that the extension is only to file your return. It does not extend the time to pay your taxes," said Ralph Havens, an enrolled agent and director of licensed taxpayer representatives at JK Harris & Co. LLC, one of the nation's largest tax resolution firms.
The longer payment is delayed, the more you'll be in debt. If you owe the Internal Revenue Service, it not only can charge you interest on the amount due, it also can levy your bank account, garnish your wages and seize your assets in order to collect.
For people who have not paid their taxes for a number of years, if they meet the qualifications and requirements, Havens recommends considering an Offer in Compromise. Also known as an OIC, this program is an agreement between a taxpayer and the IRS that resolves the taxpayer's tax liability. The IRS accepts OICs when it is unlikely that the tax liability can be collected in full.
Talking with an expert is often the best strategy when looking to clear up tax debt. JK Harris, for example, utilizes former IRS agents, certified public accountants, enrolled agents and attorneys to help taxpayers understand and resolve their tax debt by preparing OICs, negotiating the release of wage garnishments, lifting property liens, having penalties and interest forgiven or setting up affordable installment plans. Experts at JK Harris also can assist individuals who need help preparing their taxes or need support for an IRS audit.
Monday, January 11, 2010
Sunday, January 10, 2010
Why an IRS Tax Lien is Serious and Should Not Be Neglected
Author: Manuel Davis Jr.
Source: ezinearticles.com
Do you accept a tax affirmation on a section of acreage that you own? If so, you should yield this seriously. This is not a bold that the IRS is playing. They wish the money you owe, and are already demography accumulating accomplishments adjoin you to get it. Even if you avoid the affirmation they are still traveling to get what is advancing to them. A tax affirmation is a affirmation on your acreage for taxes that are unpaid. Therefore, you cannot advertise your abode for example, unless the taxes are paid off.
It can be actual austere for abounding reasons. First off, you owe money to the IRS. A affirmation is not acclimated unless you owe money that you accept not been paying for whatever reason. When you are in debt to the IRS you are in a austere position because they accept a lot of power. In accession to a tax affirmation they can aswell burden your wages. In added words, they will activate to yield the money you owe out of anniversary paycheck. There are not abounding organizations in the apple that accept as abundant ability as the IRS.
Additionally, an IRS tax affirmation will ruin your credit. This may not assume like a big accord appropriate now, but if you anytime try to get a accommodation with one appear on your acclaim address you can overlook about it. This shows that you accept a above problem, and in about-face your acclaim account will activate to plummet. It is actual important that you are acquainted of how it can appulse your credit. Simply put, your acclaim is traveling to be broke for the time being.
You do not wish to attending at a tax affirmation as a bedlam matter. This is austere in the eyes of the IRS, and you should feel the aforementioned way. If you owe money to the IRS and are not paying it aback there is a acceptable adventitious that you will face a affirmation in the abreast future. At this point, it is consistently best to affix with a tax able but is not all-important if you accept the time to plan with the IRS on a resolution or agreement.
Source: ezinearticles.com
Do you accept a tax affirmation on a section of acreage that you own? If so, you should yield this seriously. This is not a bold that the IRS is playing. They wish the money you owe, and are already demography accumulating accomplishments adjoin you to get it. Even if you avoid the affirmation they are still traveling to get what is advancing to them. A tax affirmation is a affirmation on your acreage for taxes that are unpaid. Therefore, you cannot advertise your abode for example, unless the taxes are paid off.
It can be actual austere for abounding reasons. First off, you owe money to the IRS. A affirmation is not acclimated unless you owe money that you accept not been paying for whatever reason. When you are in debt to the IRS you are in a austere position because they accept a lot of power. In accession to a tax affirmation they can aswell burden your wages. In added words, they will activate to yield the money you owe out of anniversary paycheck. There are not abounding organizations in the apple that accept as abundant ability as the IRS.
Additionally, an IRS tax affirmation will ruin your credit. This may not assume like a big accord appropriate now, but if you anytime try to get a accommodation with one appear on your acclaim address you can overlook about it. This shows that you accept a above problem, and in about-face your acclaim account will activate to plummet. It is actual important that you are acquainted of how it can appulse your credit. Simply put, your acclaim is traveling to be broke for the time being.
You do not wish to attending at a tax affirmation as a bedlam matter. This is austere in the eyes of the IRS, and you should feel the aforementioned way. If you owe money to the IRS and are not paying it aback there is a acceptable adventitious that you will face a affirmation in the abreast future. At this point, it is consistently best to affix with a tax able but is not all-important if you accept the time to plan with the IRS on a resolution or agreement.
Visit BackTaxesHelp.com for help with IRS back taxes. Find trusted self-help articles and tax lien help services to remove or release an IRS tax lien.
Friday, January 8, 2010
What You Need To Know About Bankruptcy Attorneys Before You Hire One
Author: Chris Simons
Source: articleage.com
The function of good bankruptcy attorneys is to guide potential bankruptcy applicants through bankruptcy procedures and to act on their behalf in court. With the new amendments, good bankruptcy attorneys will also inform their clients about why certain legal loopholes no longer exist.
It is best to seek services of a bankruptcy lawyer if you are facing any difficulty in declaring bankruptcy and starting over again. Bankruptcy proceedings have to be initiated and proceeded in adherence to all relating legal laws and requirements. A bankruptcy attorney is best qualified to explain the finer details of bankruptcy issues to make concepts and procedures clear and simple. Such attorneys help to relieve you of the pressure and anxiety that arises when filing for bankruptcy proceedings. They help you to successfully complete a discharge of debts under bankruptcy code helping you with advice, support and also assisting you with all related legal formalities and paperwork. An experienced bankruptcy lawyer can relieve you of your debt problems and help you find a feasible debt solution without jeopardizing your home, vehicle, wages, retirement account and other valuable assets.
You may seek services of a bankruptcy attorney if you are facing any of the following problems:
ท Tax problems
ท Foreclosures
ท Auto and truck repossessions
ท Creditor harassment
ท Lawsuits
ท IRS wages garnishment
ท Tax levies and seizure
It is common procedure to seek referrals from family and friends when looking to find a reliable attorney. However, this procedure may not be entirely advisable when looking for a bankruptcy attorney unless your friend has gone through a bankruptcy. Instead, ask for suggestions and reference from legal professionals whom you already know. Check if your attorney is certified by the American Bankruptcy Institute and also meets the required additional standards. Make it a point to personally check out your attorney's law firm's offices. You may not be comfortable dealing with an attorney having a completely disorganized office. Also, it is essential to look for an attorney with whom you are comfortable discussing your personal and financial problems.
Every state and city has a Bar Association, and the Association of Consumer Bankruptcy Attorneys is another good source. While narrowing down your final choice, ensure that the attorney is certified by the American Bankruptcy Institute, so that a reasonable degree of accountability is established. Finally, find out how many actual bankruptcy cases the attorney has handled in the given year, and how many of them yielded satisfactorily results from the client's point of view.
Here are few factors to consider while selecting a bankruptcy lawyer:
ท Check out and Compare profiles and credentials
ท How experienced is the particular bankruptcy attorney
ท How many bankruptcy cases the attorney has handled
ท What is the nature of bankruptcy cases that he commonly handles, are they personal, consumer, or business filings
ท Is the attorney willing to offer personalized services apprising you of the various procedures that are involved
ท How comfortable are you with the attorney to discuss your problems
ท How much access you have to your attorney during bankruptcy filing
ท How much fee does the attorney charge, etc.
Chris Simons is a prolific freelance writer. You are welcomed to visit http://bankruptcy.cyberinformer.com, for more information on Bankruptcy.
Source: articleage.com
The function of good bankruptcy attorneys is to guide potential bankruptcy applicants through bankruptcy procedures and to act on their behalf in court. With the new amendments, good bankruptcy attorneys will also inform their clients about why certain legal loopholes no longer exist.
It is best to seek services of a bankruptcy lawyer if you are facing any difficulty in declaring bankruptcy and starting over again. Bankruptcy proceedings have to be initiated and proceeded in adherence to all relating legal laws and requirements. A bankruptcy attorney is best qualified to explain the finer details of bankruptcy issues to make concepts and procedures clear and simple. Such attorneys help to relieve you of the pressure and anxiety that arises when filing for bankruptcy proceedings. They help you to successfully complete a discharge of debts under bankruptcy code helping you with advice, support and also assisting you with all related legal formalities and paperwork. An experienced bankruptcy lawyer can relieve you of your debt problems and help you find a feasible debt solution without jeopardizing your home, vehicle, wages, retirement account and other valuable assets.
You may seek services of a bankruptcy attorney if you are facing any of the following problems:
ท Tax problems
ท Foreclosures
ท Auto and truck repossessions
ท Creditor harassment
ท Lawsuits
ท IRS wages garnishment
ท Tax levies and seizure
It is common procedure to seek referrals from family and friends when looking to find a reliable attorney. However, this procedure may not be entirely advisable when looking for a bankruptcy attorney unless your friend has gone through a bankruptcy. Instead, ask for suggestions and reference from legal professionals whom you already know. Check if your attorney is certified by the American Bankruptcy Institute and also meets the required additional standards. Make it a point to personally check out your attorney's law firm's offices. You may not be comfortable dealing with an attorney having a completely disorganized office. Also, it is essential to look for an attorney with whom you are comfortable discussing your personal and financial problems.
Every state and city has a Bar Association, and the Association of Consumer Bankruptcy Attorneys is another good source. While narrowing down your final choice, ensure that the attorney is certified by the American Bankruptcy Institute, so that a reasonable degree of accountability is established. Finally, find out how many actual bankruptcy cases the attorney has handled in the given year, and how many of them yielded satisfactorily results from the client's point of view.
Here are few factors to consider while selecting a bankruptcy lawyer:
ท Check out and Compare profiles and credentials
ท How experienced is the particular bankruptcy attorney
ท How many bankruptcy cases the attorney has handled
ท What is the nature of bankruptcy cases that he commonly handles, are they personal, consumer, or business filings
ท Is the attorney willing to offer personalized services apprising you of the various procedures that are involved
ท How comfortable are you with the attorney to discuss your problems
ท How much access you have to your attorney during bankruptcy filing
ท How much fee does the attorney charge, etc.
Chris Simons is a prolific freelance writer. You are welcomed to visit http://bankruptcy.cyberinformer.com, for more information on Bankruptcy.
Thursday, January 7, 2010
For The Love Of Charity! The Economics Of Parasitism
Author: Croydon J Hounslow
Source: articledashboard.com
This morning, as I emerged blinking from Chancery Lane station on my way to work, I was confronted by a young lady sporting a nylon tunic emblazoned with the words 'Every Child' and a fat clipboard full of Direct Debit forms. As I approached, she began to play out some ridiculous dumb show of desperation worthy of the sad clown in a cut-price circus and entreating myself and the guy walking immediately ahead of me to "Pleeeeeease stop and talk to me!" in pathetic, 'can-I-have-a-pony-Daddy?' tones. In response to her transparent and two dimensional plea, I fixed on my best chugger-proof thousand yard stare (they can't catch your eye if you look through them!) and trundled blithely on. My fellow pedestrian, however, felt no such need for reserve in his response, calling out loudly "there's a good reason why no-one's talking to you, love, it's because you're a f***ing parasite!"
A crass and imbalanced response to a kind-hearted soul trying to make a difference, you might say; a callous dismissal of the efforts of a good, honest individual to make a difference to the cruel world we live in? Not so, say I! Let us take a moment to examine the economics of this new, self-made industry sector and see if there might actually be some mileage in this young man's claim.
Some years ago, whilst I was still at university supplementing my student by loan working in a bar up to five nights a week and living in a shared house, one of my then housemates came home announcing that she had found 'an amazing job' which allowed her to work just one day a week and bring home more money than my five bar shifts used to earn. Intrigued, I asked for more details of this wonder job and sat back as my housemate launched into a breathless account of how she and her fearless new colleagues were out to save the world. "Firstly, she gasped, in a froth of self-congratulatory altruism, "the best thing about the job is that it's working for charity!" So far, so good I thought; charity is good. "Basically, you go out with a team of people and you talk to people in the street and you ask them to sign up to donate money for your charity." "Which charity is this?" I asked. "Oh, it could be a different charity every week, we work through an agency" she replied. At this point, alarm bells began to ring.
To cut a long story short, it transpired that my housemate was being paid around ฃ9.50 per hour to stand in the street, harassing the general public into surrendering their direct debit details and donate to charity making, over a ten hour shift a daily total of ฃ95, which was a pretty damn good take home for a days work for a 20 year old student. Add to that the fact that employment agencies of any sort levy a charge on top of this daily wage to the employer, in this case the charity, which can easily be equal to or even in excess of the actual wages paid to the employee. Lets be generous in this case and assume that the agency in question charges 30% on top of wage charges. That leaves a daily cost to the charity in question of ฃ123.50. After a rushed mental calculation, I exclaimed to my housemate "wow, you must have to work really hard to pay for yourself; how many are you expected to sign up in a day?" "One" she replied, "at least while we're new to the job, later on you're expected to be better at it, the really good ones get four or five in a day!". Four and five in a day sounds like a pretty low rate considering the cost; "how much are these four or five people donating?"; "about ฃ3.50 a month on average".
I was gobsmacked! I couldn't help it, the calculator came out.
"I hate to piss on your parade," I said, five minutes later "but at one signee per day for ฃ3.50 a month, you'd need to work for 35 days straight, or seven full working weeks to bring in enough revenue from initial payments to pay your wages for a single day. To put it another way, the one person that you sign up today has to maintain this direct debit for just shy of three years before what you did today becomes profitable for the charity that hired you. I fail to see how this is a good thing you are doing."
Two days later, my housemate returns from a second shift 'chugging', "we are raising awareness" she says, "increasing the public brand visibility of the charities we work for". Sure you are, you're raising my awareness of the fact that people in nylon tunics are to be avoided; you're raising my awareness of the depths to which unscrupulous agencies and cash strapped students will stoop; you're raising my awareness of exactly how much voluntarily donated cash intended for charity use gets siphoned off into the pockets of middlemen and smooth talkers. I fail to see how this is a good thing!
If you really want to donate to a charity, do it via their website.
Source: articledashboard.com
This morning, as I emerged blinking from Chancery Lane station on my way to work, I was confronted by a young lady sporting a nylon tunic emblazoned with the words 'Every Child' and a fat clipboard full of Direct Debit forms. As I approached, she began to play out some ridiculous dumb show of desperation worthy of the sad clown in a cut-price circus and entreating myself and the guy walking immediately ahead of me to "Pleeeeeease stop and talk to me!" in pathetic, 'can-I-have-a-pony-Daddy?' tones. In response to her transparent and two dimensional plea, I fixed on my best chugger-proof thousand yard stare (they can't catch your eye if you look through them!) and trundled blithely on. My fellow pedestrian, however, felt no such need for reserve in his response, calling out loudly "there's a good reason why no-one's talking to you, love, it's because you're a f***ing parasite!"
A crass and imbalanced response to a kind-hearted soul trying to make a difference, you might say; a callous dismissal of the efforts of a good, honest individual to make a difference to the cruel world we live in? Not so, say I! Let us take a moment to examine the economics of this new, self-made industry sector and see if there might actually be some mileage in this young man's claim.
Some years ago, whilst I was still at university supplementing my student by loan working in a bar up to five nights a week and living in a shared house, one of my then housemates came home announcing that she had found 'an amazing job' which allowed her to work just one day a week and bring home more money than my five bar shifts used to earn. Intrigued, I asked for more details of this wonder job and sat back as my housemate launched into a breathless account of how she and her fearless new colleagues were out to save the world. "Firstly, she gasped, in a froth of self-congratulatory altruism, "the best thing about the job is that it's working for charity!" So far, so good I thought; charity is good. "Basically, you go out with a team of people and you talk to people in the street and you ask them to sign up to donate money for your charity." "Which charity is this?" I asked. "Oh, it could be a different charity every week, we work through an agency" she replied. At this point, alarm bells began to ring.
To cut a long story short, it transpired that my housemate was being paid around ฃ9.50 per hour to stand in the street, harassing the general public into surrendering their direct debit details and donate to charity making, over a ten hour shift a daily total of ฃ95, which was a pretty damn good take home for a days work for a 20 year old student. Add to that the fact that employment agencies of any sort levy a charge on top of this daily wage to the employer, in this case the charity, which can easily be equal to or even in excess of the actual wages paid to the employee. Lets be generous in this case and assume that the agency in question charges 30% on top of wage charges. That leaves a daily cost to the charity in question of ฃ123.50. After a rushed mental calculation, I exclaimed to my housemate "wow, you must have to work really hard to pay for yourself; how many are you expected to sign up in a day?" "One" she replied, "at least while we're new to the job, later on you're expected to be better at it, the really good ones get four or five in a day!". Four and five in a day sounds like a pretty low rate considering the cost; "how much are these four or five people donating?"; "about ฃ3.50 a month on average".
I was gobsmacked! I couldn't help it, the calculator came out.
"I hate to piss on your parade," I said, five minutes later "but at one signee per day for ฃ3.50 a month, you'd need to work for 35 days straight, or seven full working weeks to bring in enough revenue from initial payments to pay your wages for a single day. To put it another way, the one person that you sign up today has to maintain this direct debit for just shy of three years before what you did today becomes profitable for the charity that hired you. I fail to see how this is a good thing you are doing."
Two days later, my housemate returns from a second shift 'chugging', "we are raising awareness" she says, "increasing the public brand visibility of the charities we work for". Sure you are, you're raising my awareness of the fact that people in nylon tunics are to be avoided; you're raising my awareness of the depths to which unscrupulous agencies and cash strapped students will stoop; you're raising my awareness of exactly how much voluntarily donated cash intended for charity use gets siphoned off into the pockets of middlemen and smooth talkers. I fail to see how this is a good thing!
If you really want to donate to a charity, do it via their website.
Tuesday, January 5, 2010
How to Get Tax Relief
Author: Kerminder Singh
Source: ezinearticles.com
Do you want tax relief? If the blame for non payment of taxes lies on various unforeseen and mitigating circumstances then there is a good chance that the IRS will offer you a chance to redeem yourself by negotiating a deal with you. There are various ways available to get that. All you need to do is that you have to get in touch with a tax expert who knows the ins and outs of tax relief.
You will find a host of such experts and will be hard-pressed to choose the right person. It's important that you put in a whole lot of effort with respect to choice otherwise you might land up with a more debt than you earlier started off with.
The IRS Offer in Compromise
This Offer is given by the IRS to tax debtors and is one of the best solutions on offer. The IRS offers this option or more specifically the Tax relief experts are able to negotiate an Offer in Compromise on the basis of a doubt with respect to the capability of the person to pay the full amount due. Moreover, an Offer in Compromise is also brought about if there is a contention with respect to the tax payer; whether they actually owe the debt. In such cases where there is reasonable doubt that the IRS would definitely go for negotiation and try and work out a reasonable amount due with a person who owes taxes.
The Agreement for Installments
Another instrument of tax relief is the 'Installed Agreements'. This is for those people who won't qualify for IRS Offers in Compromise. The IRS allows for the structuring of payment plans, five in number, for the repayment of the dues. These are the so called installment agreements. These installments are Guaranteed Installment Agreements, In-Business Trust Fund Agreements, and Installment Agreement on Specified Balance Due Accounts, Long-Term Installment Agreements, and Streamlined Installment Agreements.
Levy and Garnishment Release
Another way of getting tax relief is by affecting a procedure of wage garnishment. The decision for the same lies on the shoulders of the IRS! Herein, a portion of the paycheck is claimed by the IRS directly from your employer. Till the time the amount is paid in full, the garnishment will remain in place. After the tax has been paid in full, the IRS, will process a Garnishment release.
There are many more instruments that are available for the purposes of tax relief. As before mentioned all you need to do is try and come up with the best solution along with your expert and convey the same to the IRS and put the solution up for negotiation. You must remember that you will get tax relief only if YOU want one! Therefore, let there be no doubts in your mind as to the question of payment of your dues. You need to pay them and get it over with. The How and When will be answered by circumstances and the kind of deal that you strike with the IRS.
Source: ezinearticles.com
Do you want tax relief? If the blame for non payment of taxes lies on various unforeseen and mitigating circumstances then there is a good chance that the IRS will offer you a chance to redeem yourself by negotiating a deal with you. There are various ways available to get that. All you need to do is that you have to get in touch with a tax expert who knows the ins and outs of tax relief.
You will find a host of such experts and will be hard-pressed to choose the right person. It's important that you put in a whole lot of effort with respect to choice otherwise you might land up with a more debt than you earlier started off with.
The IRS Offer in Compromise
This Offer is given by the IRS to tax debtors and is one of the best solutions on offer. The IRS offers this option or more specifically the Tax relief experts are able to negotiate an Offer in Compromise on the basis of a doubt with respect to the capability of the person to pay the full amount due. Moreover, an Offer in Compromise is also brought about if there is a contention with respect to the tax payer; whether they actually owe the debt. In such cases where there is reasonable doubt that the IRS would definitely go for negotiation and try and work out a reasonable amount due with a person who owes taxes.
The Agreement for Installments
Another instrument of tax relief is the 'Installed Agreements'. This is for those people who won't qualify for IRS Offers in Compromise. The IRS allows for the structuring of payment plans, five in number, for the repayment of the dues. These are the so called installment agreements. These installments are Guaranteed Installment Agreements, In-Business Trust Fund Agreements, and Installment Agreement on Specified Balance Due Accounts, Long-Term Installment Agreements, and Streamlined Installment Agreements.
Levy and Garnishment Release
Another way of getting tax relief is by affecting a procedure of wage garnishment. The decision for the same lies on the shoulders of the IRS! Herein, a portion of the paycheck is claimed by the IRS directly from your employer. Till the time the amount is paid in full, the garnishment will remain in place. After the tax has been paid in full, the IRS, will process a Garnishment release.
There are many more instruments that are available for the purposes of tax relief. As before mentioned all you need to do is try and come up with the best solution along with your expert and convey the same to the IRS and put the solution up for negotiation. You must remember that you will get tax relief only if YOU want one! Therefore, let there be no doubts in your mind as to the question of payment of your dues. You need to pay them and get it over with. The How and When will be answered by circumstances and the kind of deal that you strike with the IRS.
Sunday, January 3, 2010
Biggest Mistakes Small Businesses Make When Faced with Delinquent Payroll Taxes and IRS Penalties
Author: Michael Rozbruch
Source: articlesbase.com
Payroll tax problems can close a business overnight and lead to criminal sanctions including prison time. As the IRS grows increasingly aggressive in their collection attempts for past due payroll taxes, struggling business owners with delinquent payroll taxes need to know how to protect the future of their businesses. Don’t let the IRS levy your funds and take control of your cash flow â€" find out how you can resolve payroll tax penalties and avoid the long-term devastation they can cause your company. These days are tough on businesses, and delinquent payroll taxes can be the downfall of many otherwise successful companies. Payroll tax problems can cause long-term devastation that your business may never recover from. In this down economy, many businesses may find themselves in a cash flow crisis and tempted to “borrow†from the money they collect from employment taxes to pay operating expenses until things improve. This is a big mistake because what many businesses don’t know is that the IRS views non-payment of payroll taxes as 'theft’ and thus it carries severe consequences. The IRS has highly effective methods to ensure that they collect on delinquent payroll taxes, including exceedingly severe measures that can put you out of business. The IRS is merciless and the biggest risk that business owners with payroll tax problems can take is incurring their wrath. They have a powerful arsenal of tools at their disposal to collect on delinquent payroll taxes and will stop at nothing â€" including levying your customers/clients. If you are in a situation where you have not been compliant with payroll taxes for a prolonged time, you will be required to provide to the IRS any information they request, including a list of clients and customers (phone numbers and addresses). At this point, the IRS will intercept payments from your customers to pay your delinquent payroll taxes. In addition to having your cash flow cut off, you will also risk permanently losing valued customers because of your payroll tax problems. After being contacted by the IRS, your clients may no longer want to do business with you and you may lose an ongoing source of revenue to keep your operations afloat. So don’t let the IRS take control of your cash flow and risk losing the company you spent so many years building. Additionally, ignoring potential payroll tax penalties is one of the biggest mistakes that small businesses can make. The stakes are huge â€" along with being hit with hefty delinquent payroll tax penalties, many business owners with delinquent payroll taxes have found their business’s doors padlocked overnight and facing criminal sanctions including prison time. And with the federal government looking for ways to fund deficit-reduction activities as well as close the growing tax gap, the IRS is taking a closer look at employment tax returns, and stepping up increasingly aggressive efforts to collect unpaid payroll taxes. To protect the future of your business, avoid the common mistakes that many business owners make when faced with payroll tax problems and learn how to resolve delinquent payroll tax penalties and avoid the long-term devastation to your company. If you owe delinquent payroll taxes, before you talk to the IRS, talk to a tax attorney/ tax resolution specialist. When it comes to delinquent payroll tax penalties, the IRS does not really care if your business survives. When the IRS goes after your business for delinquent payroll taxes, you risk handing over the reins of your business to the IRS. To avoid this, you will need to get professional help from a tax attorney or tax resolution specialist who can help you protect your company. In addition to resolving your payroll tax problems, a qualified professional will be able to negotiate on your behalf with the IRS, as well as guide you on how to best move forward with your financial situation so you can keep your business. An experienced professional will truly understand what makes your businesses tick and will make sure that you have the cash flow and ongoing business necessary to keep your doors open. With no other sources of working capital, your company will go out of business when you can’t pay rent, utilities, and other operating expenses - it would be just a matter of time. Payroll tax debt should not be taken lightly - IRS levies on wages and bank accounts can cause you to lose your business! Payroll tax problems can be the “kiss of death†for many business owners. IRS penalties from delinquent payroll taxes can add up to about 33% PLUS interest in just 16 days after you have filed the 941 (payroll tax return) past the due date and didn't pay! You can imagine what those delinquent payroll tax penalties add up to if you ignore this for a prolonged period of time. This can seriously paralyze your cash flow and you risk losing your business, having your assets seized and being held personally liable! When it comes to delinquent payroll tax penalties, the IRS collection Revenue Officer has unyielding power and authority. They have the power to padlock your front doors, putting you out of business, without obtaining a court order. No other creditor in the world, (not even the President of the United States) can do this. They can seize your machinery and equipment. They can contact your customers, and if your customers owe you any money, the IRS will intercept these funds through their powerful levying authority. So you will need to get expert help from a tax attorney or tax resolution professional who specializes in delinquent payroll taxes who can ensure you have working capital to save your business while you resolve your payroll tax problems. Don’t waste any time - Delinquent payroll tax penalties are a ticking time bomb. If you know you owe delinquent payroll tax penalties, contact a tax attorney or tax resolution specialist and start your action plan today. The penalties assessed on delinquent payroll tax deposits or filings can increase dramatically the total amount owed in just a matter of months. Generally, if you don't take immediate action to deal with a delinquent payroll tax penalties, you will find yourself out of business. Because the IRS, is very aggressive collecting delinquent payroll taxes, you need to come up with a way to pay them off fast. The IRS can levy a Trust Fund Recovery Penalty (TFRP) that imposes a 100% penalty on responsible third parties for delinquent payroll tax penalties. This is considered a civil penalty that only applies to collected taxes (like Social Security) and withholdings and does not apply to the employer's portion of FICA, Medicare, 940 taxes or income taxes of the corporation. Know that the IRS prioritizes collecting employment taxes and accelerates the notice process â€" so act swiftly to save your company. There’s a lot more at stake for business owners dealing with delinquent payroll tax penalties than cutting a deal with the IRS to save money â€" resolving your delinquent payroll tax penalties is about saving your company. The IRS assigns a higher priority to collecting delinquent payroll taxes than income taxes so it’s much more difficult to negotiate a tax settlement such as a long-term installment agreement for unpaid payroll taxes. Offer in Compromise settlements for delinquent payroll tax penalties are often rejected because the IRS may assume that the business is worth more than delinquent payroll tax debt owed, and they use that as reason to reject the offer. To prevail in these Offers for delinquent payroll tax debt, the taxpayerÂneeds representation by an expert who can analyze and effectively articulate the real value of the business, which includes taking into consideration seasonality of the business, as well as macro factors in the economy. For larger delinquent payroll tax penalty liabilities, the taxpayer will be required to submit a full set of financials for the business as well as for themselves, each proposal for an installment agreement is negotiated point by point. Don’t risk being held personally liable from delinquent payroll tax penalties. There are two tests that the IRS uses to determine the responsible party for payroll tax issues: If the IRS can prove that you were willful and intentionally (very low thresholds) didn't file and/or pay your employment taxes, it may be considered a federal crime. One or more persons may be assessed with the delinquent payroll tax penalties from the IRS for delinquent payroll taxes - they can be assessed jointly and incur several liabilities. You do not have to be an officer of the company to be liable. The IRS is the most aggressive collection agency with the ability to pierce the corporate veilÂand go after the owners/shareholders/members individually. Liability for delinquent payroll tax penalties can be assessed against CPAs, EAs, accountants,Âand bookkeepers. Don’t give up hope. If you're already in trouble with the IRS for delinquent payroll tax penalties, what do you do next? Don't panic. Just keep in mind that there's a solution to every delinquent payroll tax problem. Whether you owe $700 or $7 million in delinquent payroll tax penalties, you can find a way out, sometimes for a small fraction of what you owe. The key is contacting a tax resolution professional as soon as you can. A consultation with a good tax attorney or tax resolution specialist can turn your delinquent payroll tax nightmare into a distant memory so you can go back to the business of your small business, creating the American dream. For more information on achieving a tax resolution for your payroll tax problems, visit www.taxresolution.com for a free tax relief consultation or call 866-IRS-PROBLEMS.
Source: articlesbase.com
Payroll tax problems can close a business overnight and lead to criminal sanctions including prison time. As the IRS grows increasingly aggressive in their collection attempts for past due payroll taxes, struggling business owners with delinquent payroll taxes need to know how to protect the future of their businesses. Don’t let the IRS levy your funds and take control of your cash flow â€" find out how you can resolve payroll tax penalties and avoid the long-term devastation they can cause your company. These days are tough on businesses, and delinquent payroll taxes can be the downfall of many otherwise successful companies. Payroll tax problems can cause long-term devastation that your business may never recover from. In this down economy, many businesses may find themselves in a cash flow crisis and tempted to “borrow†from the money they collect from employment taxes to pay operating expenses until things improve. This is a big mistake because what many businesses don’t know is that the IRS views non-payment of payroll taxes as 'theft’ and thus it carries severe consequences. The IRS has highly effective methods to ensure that they collect on delinquent payroll taxes, including exceedingly severe measures that can put you out of business. The IRS is merciless and the biggest risk that business owners with payroll tax problems can take is incurring their wrath. They have a powerful arsenal of tools at their disposal to collect on delinquent payroll taxes and will stop at nothing â€" including levying your customers/clients. If you are in a situation where you have not been compliant with payroll taxes for a prolonged time, you will be required to provide to the IRS any information they request, including a list of clients and customers (phone numbers and addresses). At this point, the IRS will intercept payments from your customers to pay your delinquent payroll taxes. In addition to having your cash flow cut off, you will also risk permanently losing valued customers because of your payroll tax problems. After being contacted by the IRS, your clients may no longer want to do business with you and you may lose an ongoing source of revenue to keep your operations afloat. So don’t let the IRS take control of your cash flow and risk losing the company you spent so many years building. Additionally, ignoring potential payroll tax penalties is one of the biggest mistakes that small businesses can make. The stakes are huge â€" along with being hit with hefty delinquent payroll tax penalties, many business owners with delinquent payroll taxes have found their business’s doors padlocked overnight and facing criminal sanctions including prison time. And with the federal government looking for ways to fund deficit-reduction activities as well as close the growing tax gap, the IRS is taking a closer look at employment tax returns, and stepping up increasingly aggressive efforts to collect unpaid payroll taxes. To protect the future of your business, avoid the common mistakes that many business owners make when faced with payroll tax problems and learn how to resolve delinquent payroll tax penalties and avoid the long-term devastation to your company. If you owe delinquent payroll taxes, before you talk to the IRS, talk to a tax attorney/ tax resolution specialist. When it comes to delinquent payroll tax penalties, the IRS does not really care if your business survives. When the IRS goes after your business for delinquent payroll taxes, you risk handing over the reins of your business to the IRS. To avoid this, you will need to get professional help from a tax attorney or tax resolution specialist who can help you protect your company. In addition to resolving your payroll tax problems, a qualified professional will be able to negotiate on your behalf with the IRS, as well as guide you on how to best move forward with your financial situation so you can keep your business. An experienced professional will truly understand what makes your businesses tick and will make sure that you have the cash flow and ongoing business necessary to keep your doors open. With no other sources of working capital, your company will go out of business when you can’t pay rent, utilities, and other operating expenses - it would be just a matter of time. Payroll tax debt should not be taken lightly - IRS levies on wages and bank accounts can cause you to lose your business! Payroll tax problems can be the “kiss of death†for many business owners. IRS penalties from delinquent payroll taxes can add up to about 33% PLUS interest in just 16 days after you have filed the 941 (payroll tax return) past the due date and didn't pay! You can imagine what those delinquent payroll tax penalties add up to if you ignore this for a prolonged period of time. This can seriously paralyze your cash flow and you risk losing your business, having your assets seized and being held personally liable! When it comes to delinquent payroll tax penalties, the IRS collection Revenue Officer has unyielding power and authority. They have the power to padlock your front doors, putting you out of business, without obtaining a court order. No other creditor in the world, (not even the President of the United States) can do this. They can seize your machinery and equipment. They can contact your customers, and if your customers owe you any money, the IRS will intercept these funds through their powerful levying authority. So you will need to get expert help from a tax attorney or tax resolution professional who specializes in delinquent payroll taxes who can ensure you have working capital to save your business while you resolve your payroll tax problems. Don’t waste any time - Delinquent payroll tax penalties are a ticking time bomb. If you know you owe delinquent payroll tax penalties, contact a tax attorney or tax resolution specialist and start your action plan today. The penalties assessed on delinquent payroll tax deposits or filings can increase dramatically the total amount owed in just a matter of months. Generally, if you don't take immediate action to deal with a delinquent payroll tax penalties, you will find yourself out of business. Because the IRS, is very aggressive collecting delinquent payroll taxes, you need to come up with a way to pay them off fast. The IRS can levy a Trust Fund Recovery Penalty (TFRP) that imposes a 100% penalty on responsible third parties for delinquent payroll tax penalties. This is considered a civil penalty that only applies to collected taxes (like Social Security) and withholdings and does not apply to the employer's portion of FICA, Medicare, 940 taxes or income taxes of the corporation. Know that the IRS prioritizes collecting employment taxes and accelerates the notice process â€" so act swiftly to save your company. There’s a lot more at stake for business owners dealing with delinquent payroll tax penalties than cutting a deal with the IRS to save money â€" resolving your delinquent payroll tax penalties is about saving your company. The IRS assigns a higher priority to collecting delinquent payroll taxes than income taxes so it’s much more difficult to negotiate a tax settlement such as a long-term installment agreement for unpaid payroll taxes. Offer in Compromise settlements for delinquent payroll tax penalties are often rejected because the IRS may assume that the business is worth more than delinquent payroll tax debt owed, and they use that as reason to reject the offer. To prevail in these Offers for delinquent payroll tax debt, the taxpayerÂneeds representation by an expert who can analyze and effectively articulate the real value of the business, which includes taking into consideration seasonality of the business, as well as macro factors in the economy. For larger delinquent payroll tax penalty liabilities, the taxpayer will be required to submit a full set of financials for the business as well as for themselves, each proposal for an installment agreement is negotiated point by point. Don’t risk being held personally liable from delinquent payroll tax penalties. There are two tests that the IRS uses to determine the responsible party for payroll tax issues: If the IRS can prove that you were willful and intentionally (very low thresholds) didn't file and/or pay your employment taxes, it may be considered a federal crime. One or more persons may be assessed with the delinquent payroll tax penalties from the IRS for delinquent payroll taxes - they can be assessed jointly and incur several liabilities. You do not have to be an officer of the company to be liable. The IRS is the most aggressive collection agency with the ability to pierce the corporate veilÂand go after the owners/shareholders/members individually. Liability for delinquent payroll tax penalties can be assessed against CPAs, EAs, accountants,Âand bookkeepers. Don’t give up hope. If you're already in trouble with the IRS for delinquent payroll tax penalties, what do you do next? Don't panic. Just keep in mind that there's a solution to every delinquent payroll tax problem. Whether you owe $700 or $7 million in delinquent payroll tax penalties, you can find a way out, sometimes for a small fraction of what you owe. The key is contacting a tax resolution professional as soon as you can. A consultation with a good tax attorney or tax resolution specialist can turn your delinquent payroll tax nightmare into a distant memory so you can go back to the business of your small business, creating the American dream. For more information on achieving a tax resolution for your payroll tax problems, visit www.taxresolution.com for a free tax relief consultation or call 866-IRS-PROBLEMS.
Michael Rozbruch is one of the nation's leading tax experts. A Certified Tax Resolution Specialist (CTRS), licensed CPA and the founder of Tax Resolution Services. He helps individuals and small businesses solve their IRS problems and is dedicated to educating the public on tax planning and other strategies for managing their personal and business finances.
Friday, January 1, 2010
Obtaining an IRS Levy Release: The 668W & 668A
Author: James Coleman
Source: download
Friday is the payday for most Americans. Getting paid is usually a good start to a great weekend. Unfortunately, for some people payday is a disaster because the IRS has issued a wage levy and they get little or nothing on payday. What could be worse? Calling the bank to find out if you have money to pay your bills and finding out that your account has been frozen with an IRS bank levy. Does this happen? Yes, it does and it is occurring more often now that IRS has adopted a "get tough" policy on collecting tax debts.
IRS keeps an amount from each pay check based on the number of exemptions claimed on the employee copy of the Form 668W. Failure to fill out the 668W may mean the maximum is kept from an employee paycheck. If you are married or have kids, it is critical to fill out the 668W exemption portion. For very low wage earners, an IRS levy may not result in a huge bite due to the allowed amount you can take home; but for anyone making over $10 an hour, the IRS wage levy can be devastating. IRS can also levy on Social Security or Military Retirement, but in those cases normally only 15% of the payment is attached.
The good news for those people who get hit with a levy is this: IRS doesn't normally plan to collect a tax debt via a wage levy or constant bank levy action. Collection enforcement actions are often used as "attitude adjusters" to get taxpayers into compliance. If you get an IRS bank or wage levy, you just need to respond quickly with a willingness to do what it takes to get the levy released and work out a payment arrangement. Barring rare circumstances; IRS will release a wage levy if you are in current tax compliance, provide them with the financial information they require to make a collection determination, and agree to a payment plan or prove financial hardship.
Current compliance means that you have correct withholding and at least the last 7 years tax returns filed (if you had income or were self-employed). If you don't have your W2s for prior years, IRS can get the info to you so you can file the returns. Those who are self-employed must start making Estimated Tax Payments for 2006. Failure to get into current tax compliance may mean no wage levy release.
A bank levy is much harder to get released than a wage levy. If IRS issues a levy on your bank, the funds are frozen and placed on hold in escrow for 21 days. If you can get the levy released within that time frame, the bank will put the money back in your account. Otherwise, the bank sends in the cash to IRS after the hold expires. Please note, unless a new levy is issued, you can still deposit money into your account after the initial levy to pay checks. To get a bank levy released, you must show extreme financial hardship or show that the levy is invalid. An example of hardship might be an eviction notice or documentation of a medical condition that requires drugs that can't be paid for without the money in the bank etc. An invalid levy would be one that was issues for taxes already paid in full or expired, a levy made without proper notice, or a levy attaching to an account of someone other than the taxpayer.
In my career as an Enrolled Agent, some of the toughest battles I've fought have been over bank levy actions. In the past year I've had two cases where a mother in her 60-70s had an account frozen due to a son or daughter who owed taxes. The child was on their bank account for convenience. They were released but I had to get the Taxpayer Advocate involved both times. IRS is very reluctant to grant relief on a bank levy.
The best course of action is to prevent a levy by filing your tax returns and paying your taxes on time. However, if you know you have an IRS problem, be pro-active and get help now before a levy. Be sure to pick up your Certified Mail and open any IRS letters. I can't tell you how many folks come to me after not picking up letters or opening IRS mail. If you get an IRS letter, call a tax professional or call the IRS ASAP. Many people who think they can "slip through the cracks" get caught in one!
If you owe less than 10K in payroll tax or $20K in personal taxes and have all your returns filed, you may be able to just pick up the phone and call IRS to set up an Installment Agreement. For those people who owe more than $10K in payroll tax, $20K in personal tax or have un-filed tax returns, you might be well served by hiring a good CPA, Enrolled Agent, or Tax Attorney. Whatever you do, don't hire some "tax resolution" firm you see on TV or on an internet pay per click ad offering "95% off tax debt" etc. These companies often have you talk with a "Tax Consultant" who is nothing more than a salesman. If you seek professional help, insist on talking to a CPA, EA, or Tax Attorney. They may bill you $75-$150 per hour, but in the long run will likely be much less expensive than those "tax resolution" firms. Also, instead of making wild promises, they will likely deliver results.
James Robert Coleman, E.A., A.T.A.
Enrolled Agent & Accredited Tax Advisor
Member: National Association of Enrolled Agents http://www.naea.org
Member: National Society of Accountants http://www.nsacct.org
Former IRS Revenue Officer, GS-11 http://www.exirsman.com
Source: download
Friday is the payday for most Americans. Getting paid is usually a good start to a great weekend. Unfortunately, for some people payday is a disaster because the IRS has issued a wage levy and they get little or nothing on payday. What could be worse? Calling the bank to find out if you have money to pay your bills and finding out that your account has been frozen with an IRS bank levy. Does this happen? Yes, it does and it is occurring more often now that IRS has adopted a "get tough" policy on collecting tax debts.
IRS keeps an amount from each pay check based on the number of exemptions claimed on the employee copy of the Form 668W. Failure to fill out the 668W may mean the maximum is kept from an employee paycheck. If you are married or have kids, it is critical to fill out the 668W exemption portion. For very low wage earners, an IRS levy may not result in a huge bite due to the allowed amount you can take home; but for anyone making over $10 an hour, the IRS wage levy can be devastating. IRS can also levy on Social Security or Military Retirement, but in those cases normally only 15% of the payment is attached.
The good news for those people who get hit with a levy is this: IRS doesn't normally plan to collect a tax debt via a wage levy or constant bank levy action. Collection enforcement actions are often used as "attitude adjusters" to get taxpayers into compliance. If you get an IRS bank or wage levy, you just need to respond quickly with a willingness to do what it takes to get the levy released and work out a payment arrangement. Barring rare circumstances; IRS will release a wage levy if you are in current tax compliance, provide them with the financial information they require to make a collection determination, and agree to a payment plan or prove financial hardship.
Current compliance means that you have correct withholding and at least the last 7 years tax returns filed (if you had income or were self-employed). If you don't have your W2s for prior years, IRS can get the info to you so you can file the returns. Those who are self-employed must start making Estimated Tax Payments for 2006. Failure to get into current tax compliance may mean no wage levy release.
A bank levy is much harder to get released than a wage levy. If IRS issues a levy on your bank, the funds are frozen and placed on hold in escrow for 21 days. If you can get the levy released within that time frame, the bank will put the money back in your account. Otherwise, the bank sends in the cash to IRS after the hold expires. Please note, unless a new levy is issued, you can still deposit money into your account after the initial levy to pay checks. To get a bank levy released, you must show extreme financial hardship or show that the levy is invalid. An example of hardship might be an eviction notice or documentation of a medical condition that requires drugs that can't be paid for without the money in the bank etc. An invalid levy would be one that was issues for taxes already paid in full or expired, a levy made without proper notice, or a levy attaching to an account of someone other than the taxpayer.
In my career as an Enrolled Agent, some of the toughest battles I've fought have been over bank levy actions. In the past year I've had two cases where a mother in her 60-70s had an account frozen due to a son or daughter who owed taxes. The child was on their bank account for convenience. They were released but I had to get the Taxpayer Advocate involved both times. IRS is very reluctant to grant relief on a bank levy.
The best course of action is to prevent a levy by filing your tax returns and paying your taxes on time. However, if you know you have an IRS problem, be pro-active and get help now before a levy. Be sure to pick up your Certified Mail and open any IRS letters. I can't tell you how many folks come to me after not picking up letters or opening IRS mail. If you get an IRS letter, call a tax professional or call the IRS ASAP. Many people who think they can "slip through the cracks" get caught in one!
If you owe less than 10K in payroll tax or $20K in personal taxes and have all your returns filed, you may be able to just pick up the phone and call IRS to set up an Installment Agreement. For those people who owe more than $10K in payroll tax, $20K in personal tax or have un-filed tax returns, you might be well served by hiring a good CPA, Enrolled Agent, or Tax Attorney. Whatever you do, don't hire some "tax resolution" firm you see on TV or on an internet pay per click ad offering "95% off tax debt" etc. These companies often have you talk with a "Tax Consultant" who is nothing more than a salesman. If you seek professional help, insist on talking to a CPA, EA, or Tax Attorney. They may bill you $75-$150 per hour, but in the long run will likely be much less expensive than those "tax resolution" firms. Also, instead of making wild promises, they will likely deliver results.
James Robert Coleman, E.A., A.T.A.
Enrolled Agent & Accredited Tax Advisor
Member: National Association of Enrolled Agents http://www.naea.org
Member: National Society of Accountants http://www.nsacct.org
Former IRS Revenue Officer, GS-11 http://www.exirsman.com
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