Author: Terry Detty
Source: articlerich.com
There are some Arizona tax attorneys who are always available to answer the queries of the taxpayers who are bugged with the disputes over their annual taxes. Here are among the common questions posed by the taxpayers as they get the chance to confer with the Arizona tax attorneys.
What is will happen in the event of an unfiled tax return?
Unfiled tax returns only signify one thing—and that is being in real trouble with the Internal Revenue Service. If for example you owe IRS some taxes for about ten years, then they will compute it all. They will try their level best to reach you through your old address. If in this event you have moved out of the country and once you come back, IRS will go after you demanding your dues for your taxes in the entire year of your absence.
When such case arises, you know one thing for sure. You know that you can be condemned for tax evasion. This is a crime which is punishable by the law. IRS will be very religious in sending you reminders. At one point, these reminders will become unfriendly and you will just be shocked to receive a Notice of Intent to Levy all your wages and assets.
Does it mean trouble for the unfiled tax returns that date way back?
It is in fact very much complicated if your unfiled tax returns trace to at least six years backwards. It is so because the files are kept in storage and it will need enough concerted effort to locate those records. An agent will need to browse through all of the kept files to be able to gather them all. You can just imagine how difficult it could be if your unfiled tax returns date back to some more years back in time.
What is meant by wage garnishment?
With the term wage garnishment, it means that a levy is imposed in another method. This method is concerned with the manner of collecting the back taxes which a taxpayer owes the IRS. With regards to the IRS attacks, the words levy and garnishment mean the same thing. The typical targets of the garnishment are your bank accounts and wages but the rule may also apply to the seizure of your furniture, equipment, your home, your vehicles, and you're other valued possessions.
Is any bank permitted to turn over an account to IRS without the concerned party's consent?
When IRS imposes a levy on your account in the bank, your bank is legally bound to turn over whatever amount is in your existing account. It does not regard the fact as to whether it is your own money or not or where you got your money. Keeping those monies in your own account is enough justification. Most people keep direct deposits for the Social Security, pensions, child support, and many others but then the IRS does not consume time to locate the source of the money. At the time when the money gets deposited in an account which is under your name, it automatically loses its own identity.
When will these levies on the bank account be stopped?
In comparison with the wage garnishment, a levy in your bank account will only happen once. Meaning, the next batch of money that gets deposited in your account will solely be yours again.
Terry Detty recommends this Phoenix Arizona Licensed Family Mediation and Phoenix Arizona Estate Planning Last Will and Testament . More services offered are Phoenix Arizona Bankruptcy Lawyer .
Showing posts with label irs. Show all posts
Showing posts with label irs. Show all posts
Sunday, December 27, 2009
Tuesday, December 15, 2009
Irs Installment Agreements
Author: Larry Weinstein, CPA
Source: articledashboard.com
So you find yourself with an IRS debt and you don't know how to pay it back.
Installment agreements are perhaps the most widely used method for paying past tax debts.
If you cannot afford to pay your tax liability in full, the IRS may enter into an installment agreement with you.
This will allow you to pay off your tax liability through monthly payments or installments. Installment agreements may pay all (full pay) or part (partial pay) of your past tax liability.
If you cannot pay the amount you owe within 60 months, you must file Form 433-A or 433-B. The IRS will analyze these forms and use the information to determine the amount you can pay.
The IRS has the discretion to decide on the payment amount and will usually, negotiate with you in food faith. The IRS will consider your financial situation and assets while negotiating with you. You will typically not be approved for an installment agreement if you have money or assets that IRS deems unnecessary to live on.
The IRS will usually inform you within 30 days whether or not your request has been accepted or denied or if any additional information is required to be submitted by you.
If the IRS approves your request, you will be required to pay a one time fee of $105.
Requirements for Receiving an Installment Agreement
? You must be current on all your tax returns.
? If self employed, you must be current on your quarterly estimated tax payments for the current year.
? If you have employees, you must be current on your payroll tax and Form 941 filings.
? You must make all installment payments on time.
? You must also file all tax returns and make tax payments including any estimated tax payments or Federal Tax Deposits during the term of the agreement on time.
Once you have been approved for an installment agreement, the interest and penalties continue to accrue on the unpaid portion of back tax liability throughout the duration of the installment agreement till you pay off your entire tax debt.
The interest is adjusted quarterly and combined with penalties, the rate is about 15% per year. In most cases, you could end up paying more than what you owed at the beginning. You will be charged interest and a late payment tax penalty by the IRS on the tax not paid by April 15th, even if your request to pay tax in installments is granted by the IRS.
Once you enter into an installment agreement, the IRS will suspend all collection efforts and will stop issuing wage garnishments, bank levies and notices. Depending on the circumstances, the IRS may file a Notice of Federal Tax Lien to protect its interest until you pay the liability in full.
Source: articledashboard.com
So you find yourself with an IRS debt and you don't know how to pay it back.
Installment agreements are perhaps the most widely used method for paying past tax debts.
If you cannot afford to pay your tax liability in full, the IRS may enter into an installment agreement with you.
This will allow you to pay off your tax liability through monthly payments or installments. Installment agreements may pay all (full pay) or part (partial pay) of your past tax liability.
If you cannot pay the amount you owe within 60 months, you must file Form 433-A or 433-B. The IRS will analyze these forms and use the information to determine the amount you can pay.
The IRS has the discretion to decide on the payment amount and will usually, negotiate with you in food faith. The IRS will consider your financial situation and assets while negotiating with you. You will typically not be approved for an installment agreement if you have money or assets that IRS deems unnecessary to live on.
The IRS will usually inform you within 30 days whether or not your request has been accepted or denied or if any additional information is required to be submitted by you.
If the IRS approves your request, you will be required to pay a one time fee of $105.
Requirements for Receiving an Installment Agreement
? You must be current on all your tax returns.
? If self employed, you must be current on your quarterly estimated tax payments for the current year.
? If you have employees, you must be current on your payroll tax and Form 941 filings.
? You must make all installment payments on time.
? You must also file all tax returns and make tax payments including any estimated tax payments or Federal Tax Deposits during the term of the agreement on time.
Once you have been approved for an installment agreement, the interest and penalties continue to accrue on the unpaid portion of back tax liability throughout the duration of the installment agreement till you pay off your entire tax debt.
The interest is adjusted quarterly and combined with penalties, the rate is about 15% per year. In most cases, you could end up paying more than what you owed at the beginning. You will be charged interest and a late payment tax penalty by the IRS on the tax not paid by April 15th, even if your request to pay tax in installments is granted by the IRS.
Once you enter into an installment agreement, the IRS will suspend all collection efforts and will stop issuing wage garnishments, bank levies and notices. Depending on the circumstances, the IRS may file a Notice of Federal Tax Lien to protect its interest until you pay the liability in full.
Friday, December 11, 2009
IRS Gets Tough on Collection of Large Tax Debts
Author: James Coleman
Source: articleage.com
The Federal budget deficit is big and getting bigger. As you may be aware, our political leadership in both parties is not fond of cutting spending despite what they may say to voters from time to time. Since raising taxes is not popular, a decision has been made to get tough on the taxes that are owed to Uncle Sam. The IRS is now getting very tough on collecting tax debts. Enforcement Action is up and Offer-in-Compromise settlements are way down over the last few years.
If you or a client of yours owes delinquent Federal taxes, be prepared for a financial proctology if you want to set up a payment plan or settle with IRS for less than what is owed. An IRS Form 433A or 433F may be required for individuals and a 433B for business taxpayers. Many expenses claimed are subject to limits known as the "IRS National Standards." Get the current IRS standards from their website.
If more than $25K is due, the following documented proof may be required by IRS to set up a payment plan:
1. Three months of all bank account statements the taxpayer has in their name;
2. 401k Statements;
3. Three months of pay stubs or proof of year-to-date earnings and deductions;
4. Proof of monthly bills (rent, mortgage, utilities, childcare, etc.);
5. Paid medical bills and prescription drugs; and
6. Car note, car valuation, mortgage balance, insurance costs.
If you own property, IRS may require that you apply for a loan before they will grant you an Installment Agreement or Temporary Hardship. A loan denial letter might be required to be submitted to the Revenue Officer (RO) or to the Automated Collection System (ACS) representative working the case.
The best thing that you can do if you want to avoid being put through the ringer on providing financial data is to pay your balance in full or get it below $25,000 before it gets to an IRS collector. If you can get it below $25K, chances are you can get a "streamlined" installment agreement and only have to meet requirements to pay off the debt in less than 60 months.
Don't ignore any letters you get from IRS! Wishing the IRS will go away won't make it so. The good news is that IRS is still allowing folks a 120 day grace period to full pay. You must ask for it and all delinquent tax returns must be filed. In addition, no enforcement action can be in place at the time you make the request.
Ignoring the IRS or missing an IRS deadline will likely result in enforcement action. If the IRS garnishes your wages, the levy will likely not be released until a full financial statement is given, all delinquent returns are filed, and a resolution is agreed to by the RO or ACS. If your bank account is seized: barring an extreme hardship that can be proven…kiss the money good bye.
If you owe a large tax debt, get professional help. Hire a Certified Public Accountant (CPA), Enrolled Agent (EA), or a Tax Attorney who is familiar with collection cases. Don't hire some company that promises you that they can "wipe out" all your taxes, penalty, and interest just by signing their Power-of-Attorney. Make sure whomever you hire takes a complete financial statement from you. Without it, promises of what kind of IRS deal they can get you are probably bogus.
The IRS has a program to settle tax debts for less than what is owed, but only for those people who qualify. It is called the Offer-in-Compromise. Very few will ever qualify for an OIC. IRS is currently rejecting over 80% of the OICs it is getting. Even getting a payment plan is difficult if you have a large tax debt.
If you are dealing with a serious IRS problem, stay focused and don't get depressed. If you let a tax problem overwhelm you, then you are doing a disservice to yourself and your family. After all, it is only money. Before you call IRS: get your documentation together; prepare an IRS Form 433A, 433B or 433F and double check your figures. When dealing with IRS employees, stay calm and polite no matter how cold they might be to you. They have a tough job to do and have to follow the procedures they are given by IRS management. They are not bad people and neither are you. Good luck!
You can find help at the following websites:
www.irs.gov (Internal Revenue service)
www.naea.org (National Association of Enrolled Agents)
www.ascpa.com (American Society of CPAs)
www.nsacct.org (National Society of Accountants)
James Robert Coleman, E.A., A.T.A.
Enrolled Agent, Accredited Tax Advisor, former IRS Revenue Officer.
Member-National Association of Enrolled Agents & National Society of Accountants.
http://www.exirsman.com
Source: articleage.com
The Federal budget deficit is big and getting bigger. As you may be aware, our political leadership in both parties is not fond of cutting spending despite what they may say to voters from time to time. Since raising taxes is not popular, a decision has been made to get tough on the taxes that are owed to Uncle Sam. The IRS is now getting very tough on collecting tax debts. Enforcement Action is up and Offer-in-Compromise settlements are way down over the last few years.
If you or a client of yours owes delinquent Federal taxes, be prepared for a financial proctology if you want to set up a payment plan or settle with IRS for less than what is owed. An IRS Form 433A or 433F may be required for individuals and a 433B for business taxpayers. Many expenses claimed are subject to limits known as the "IRS National Standards." Get the current IRS standards from their website.
If more than $25K is due, the following documented proof may be required by IRS to set up a payment plan:
1. Three months of all bank account statements the taxpayer has in their name;
2. 401k Statements;
3. Three months of pay stubs or proof of year-to-date earnings and deductions;
4. Proof of monthly bills (rent, mortgage, utilities, childcare, etc.);
5. Paid medical bills and prescription drugs; and
6. Car note, car valuation, mortgage balance, insurance costs.
If you own property, IRS may require that you apply for a loan before they will grant you an Installment Agreement or Temporary Hardship. A loan denial letter might be required to be submitted to the Revenue Officer (RO) or to the Automated Collection System (ACS) representative working the case.
The best thing that you can do if you want to avoid being put through the ringer on providing financial data is to pay your balance in full or get it below $25,000 before it gets to an IRS collector. If you can get it below $25K, chances are you can get a "streamlined" installment agreement and only have to meet requirements to pay off the debt in less than 60 months.
Don't ignore any letters you get from IRS! Wishing the IRS will go away won't make it so. The good news is that IRS is still allowing folks a 120 day grace period to full pay. You must ask for it and all delinquent tax returns must be filed. In addition, no enforcement action can be in place at the time you make the request.
Ignoring the IRS or missing an IRS deadline will likely result in enforcement action. If the IRS garnishes your wages, the levy will likely not be released until a full financial statement is given, all delinquent returns are filed, and a resolution is agreed to by the RO or ACS. If your bank account is seized: barring an extreme hardship that can be proven…kiss the money good bye.
If you owe a large tax debt, get professional help. Hire a Certified Public Accountant (CPA), Enrolled Agent (EA), or a Tax Attorney who is familiar with collection cases. Don't hire some company that promises you that they can "wipe out" all your taxes, penalty, and interest just by signing their Power-of-Attorney. Make sure whomever you hire takes a complete financial statement from you. Without it, promises of what kind of IRS deal they can get you are probably bogus.
The IRS has a program to settle tax debts for less than what is owed, but only for those people who qualify. It is called the Offer-in-Compromise. Very few will ever qualify for an OIC. IRS is currently rejecting over 80% of the OICs it is getting. Even getting a payment plan is difficult if you have a large tax debt.
If you are dealing with a serious IRS problem, stay focused and don't get depressed. If you let a tax problem overwhelm you, then you are doing a disservice to yourself and your family. After all, it is only money. Before you call IRS: get your documentation together; prepare an IRS Form 433A, 433B or 433F and double check your figures. When dealing with IRS employees, stay calm and polite no matter how cold they might be to you. They have a tough job to do and have to follow the procedures they are given by IRS management. They are not bad people and neither are you. Good luck!
You can find help at the following websites:
www.irs.gov (Internal Revenue service)
www.naea.org (National Association of Enrolled Agents)
www.ascpa.com (American Society of CPAs)
www.nsacct.org (National Society of Accountants)
James Robert Coleman, E.A., A.T.A.
Enrolled Agent, Accredited Tax Advisor, former IRS Revenue Officer.
Member-National Association of Enrolled Agents & National Society of Accountants.
http://www.exirsman.com
Thursday, December 10, 2009
Can the IRS Take My Pension?
Author: Darrin Mish
Source: articlerich.com
IRS Problems can cause you and your family a lot of stress. You have worked hard all your life to be able to have a nice home and car. Now the IRS is threatening to take this all away. You have received a notice from the IRS stating that they are going to seize your assets to pay off the back taxes you owe. Can they do this? Can they take your car, your home, even your pension?
The IRS can seize your assets to pay your tax bill but there are certain assets that are safe from the IRS.
1. Clothing and school books
2. Fuel, food, furniture and personal effects up to $2,500
3. Tools and books that are job related up to $1,250
4. Unemployment, worker's compensation, public assistance and job training benefits
5. Undelivered mail
6. Certain annuity and pension benefits which includes the Railroad Retirement Act, Railroad Unemployment Insurance Act, Special Pensions for Medal of Honor winners, and Retired Serviceman's Family Protection Plan and Survivor Benefit Plan
7. Certain service-oriented disability payments
8. Deposits to the special Treasury fund made by members of the armed forces and Public Health Service employees who are on permanent duty assigned outside the US
9. A minimum amount exempt from a levy on wages, salary, and other income
You will notice that on the above list it says "certain annuity and pension benefits." These benefits are not completely exempt from the IRS. Your pension may be at risk if you owe a large sum to the IRS.
The IRS will typically seize your assets in this order:
1. Bank and checking accounts
2. Cars, boats, airplanes, and other recreational vehicles
3. Cash value life insurance
4. Accounts receivable
5. Stocks and bonds
6. Wages
7. Collectibles
8. Investment and vacation real estate
9. Pensions, IRAs and Keoghs
10. Home
As you can see, pensions are low on the list.
When the IRS seizes assets, they only need enough to pay off your tax bill. Do not forget, however, that your bill has been accruing penalties and interest so it has been increasing daily. If there are no other assets available to satisfy your bill than the IRS can seize your pension.
Darrin T. Mish (http://www.getirshelp.com) is a Nationally recognized Attorney whose practice focuses on representing clients across the United States with IRS Problems. He is AV rated by Martindale-Hubbel and is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. He has been honored by a listing in Martindale-Hubbel's Bar Register of Preeminent Lawyers. He can be reached at his website at http://www.getIRShelp.com
Source: articlerich.com
IRS Problems can cause you and your family a lot of stress. You have worked hard all your life to be able to have a nice home and car. Now the IRS is threatening to take this all away. You have received a notice from the IRS stating that they are going to seize your assets to pay off the back taxes you owe. Can they do this? Can they take your car, your home, even your pension?
The IRS can seize your assets to pay your tax bill but there are certain assets that are safe from the IRS.
1. Clothing and school books
2. Fuel, food, furniture and personal effects up to $2,500
3. Tools and books that are job related up to $1,250
4. Unemployment, worker's compensation, public assistance and job training benefits
5. Undelivered mail
6. Certain annuity and pension benefits which includes the Railroad Retirement Act, Railroad Unemployment Insurance Act, Special Pensions for Medal of Honor winners, and Retired Serviceman's Family Protection Plan and Survivor Benefit Plan
7. Certain service-oriented disability payments
8. Deposits to the special Treasury fund made by members of the armed forces and Public Health Service employees who are on permanent duty assigned outside the US
9. A minimum amount exempt from a levy on wages, salary, and other income
You will notice that on the above list it says "certain annuity and pension benefits." These benefits are not completely exempt from the IRS. Your pension may be at risk if you owe a large sum to the IRS.
The IRS will typically seize your assets in this order:
1. Bank and checking accounts
2. Cars, boats, airplanes, and other recreational vehicles
3. Cash value life insurance
4. Accounts receivable
5. Stocks and bonds
6. Wages
7. Collectibles
8. Investment and vacation real estate
9. Pensions, IRAs and Keoghs
10. Home
As you can see, pensions are low on the list.
When the IRS seizes assets, they only need enough to pay off your tax bill. Do not forget, however, that your bill has been accruing penalties and interest so it has been increasing daily. If there are no other assets available to satisfy your bill than the IRS can seize your pension.
Darrin T. Mish (http://www.getirshelp.com) is a Nationally recognized Attorney whose practice focuses on representing clients across the United States with IRS Problems. He is AV rated by Martindale-Hubbel and is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. He has been honored by a listing in Martindale-Hubbel's Bar Register of Preeminent Lawyers. He can be reached at his website at http://www.getIRShelp.com
Sunday, November 22, 2009
Unreported Offshore Income? Take Action Now With the IRS
Author: Ron Cohen
Source: ezinearticles.com
The world is changing. A tax evader should seriously consider what may be the only way to stop an illegal bad situation from becoming a life-destroying criminal prosecution. Consider a Voluntary Disclosure to clean-up the past.
Based on tax law precedent going back to the 1940s, the I.R.S. and many state tax authorities have a standing polciy that, generally, they will NOT pursue criminal prosecution of tax evasion in cases where the tax evading taxpayer comes forward BEFORE they are contacted by the tax authority.
As an I.R.S. District Counsel (prosecuting attorney) once told me after a 13 week course on I.R.S. internal procedures as part of my Masters Degree program in Taxation: "If you learn nothing else in this class, remember this: If your client is in tax trouble, you need to find me before I find you."
He went on to explain that the I.R.S. wants people to be able to come back from the non-filing and non-paying underworld and get clean without fear of criminal prosecution...otherwise, tax evaders have no way to re-enter the tax system without the threat of losing not only large sums of money but also lose their liberty and living standard if they suffer criminal prosecution, versus civil (money) penalties.
Alternatively, if the I.R.S. finds or contacts a taxpayer via an audit, non-filing notices, the Form 1099 Matching Program, referrals from other non-tax prosecutions or otherwise becomes aware of significant criminal tax violations, then, their frame of mind changes. They often try to make a public example of the taxpayer and pursue criminal prosecution and jail sentences to the extent allowed by law.
It is my experience that taxpayers have to almost force the I.R.S. (by repeated bad behavior) to prosecute, as the I.R.S. has a lack of resources. They would much rather use civil penalties, liens, levies and wage garnishments which can quickly be triggered by the I.R.S. computer system to collect unpaid tax and force the taxpayer back into filing returns. But when the taxpayer ignores I.R.S. letters, disappears or is non-responsive, is under other criminal prosecution (like an arrested drug dealer) or argues the tax system is illegal or unconstitutional, the case gets elevated to where I.R.S. lawyers and criminal investigators are assigned.
At that point, the I.R.S. people involved, like all of us, want to be successful in their work; and success for them is often a criminal prosecution and a conviction. A taxpayer in that situation needs the immediate help of qualified legal counsel specializing in tax cases.
Specifically, regarding unreported offshore Income, in my opinion, you are running out of time.
Technology, the Federal and State deficits and the political winds are now all working against tax evasion with regards to unreported offshore income.
The technology is improving to catch tax evaders who often establish an offshore bank account in a country that does not share account information with the I.R.S. An A.T.M. card is often used allowing access to the funds at any A.T.M. machine in the U.S. that is in the offshore bank's A.T.M. network. The U.S. bank through which the A.T.M. withdrawal is processed becomes a legal party to the transaction. The I.R.S. has a significant project underway to drill-through the U.S. bank and find the offshore account and the U.S. taxpayer/evader.
Banks are being required to increase internal audit controls to stop inadvertently assisting tax evaders.
Recently in the news, the I.R.S. is pressuring Liechtenstein and Swiss banks to provide information on U.S. taxpayers suspected of tax evasion. Banks in the Cayman Islands and Bermuda continue to come under pressure from U.S. and European tax authorities.
Now, with the economic crisis of the last 6 months, the U.S. President and Congress and the tax authority of many countries and states see unreported income of tax evaders as "low-hanging fruit." As voters have no sympathy for offshore tax evaders, it is clear more laws and resources will be applied to pursue this unreported income.
As a result, the world is changing. A tax evader should seriously consider what may be the only way to stop an illegal bad situation from becoming a life-destroying criminal prosecution. Consider a Voluntary Disclosure to clean-up the past.
How Does A Taxpayer make a "Voluntary Disclosure?"
With regards to the I.R.S., a specific process exists for taxpayers who approach the I.R.S. with the intent to clean-up old returns. I provide five comments:
It will take many months to resolve unfiled, unreported income. Be patient!
Use complete honesty and complete disclosure in every contact with the I.R.S. or any tax authority. Remember, you are trying to avoid CRIMINAL PROSECUTION. This is not a game. Don't try playing games with partial disclosures. The worst thing you can do is hold back information at this point and be accused of lying. They have seen it all before, and they know what you are thinking, often before you do. You are coming to them for help, so provide complete cooperation. They are usually very cooperative with people who take this approach.
Keep a copy of everything you give the I.R.S. and keep a written record of every telephone conversation.
Consider getting assistance from a C.P.A., Enrolled Agent or Tax Attorney.
Don't forget the state taxes that might be involved. The I.R.S. WILL communicate the information you provide to the state tax authorities.
The starting point for a Voluntary Disclosure is no surprise. Put together your tax information for each taxable year just as if you would to originally file your tax return. Again, consider consulting with a C.P.A., and Enrolled Agent and/or a bookkeeper if you need help to get your information together.
If you can't find records, then call banks, or businesses, etc. to collect as much documentation as you can. YOU DON'T NEED TO BE PERFECT OR HAVE EVERYTHING IF IT DOES NOT EXIST. The I.R.S. understands that records from years ago may be unavailable. Reasonable estimates are fine if there is no alternative. Don't get caught in the mental trap of not filing, or waiting longer just because you can't find every record, Form 1099, receipt, bank statement or invoice.
If your return was originally filed, however, offshore (or any other type of income) was not reported, an amended tax return needs to be prepared. That is I.R.S. Form 1040X for individual taxpayers.
When you are as ready as you can be (and sooner is always better than later) to contact the I.R.S., mail everything to the I.R.S. Service Center, just as if you were filing a normal tax return, but with a cover letter. Absolutely mail it certified mail, return receipt requested and keep copies of everything and all postmarked documents (seriously) for the rest of your life. I'll skip explaining why, here.
Under Internal Revenue Manual Sec. 9.5.3.3.1.2.1, a voluntary disclosure occurs when:
The communication (tax return and/or related letter) is truthful, timely and complete. This includes:
the taxpayer shows a willingness to cooperate (and does in fact cooperate) with the IRS in determining his or her correct tax liability; and the taxpayer makes good faith arrangements with the IRS to pay in full, the tax, interest, and any penalties determined by the IRS to be applicable.
At this point, the I.R.S.sends the tax return[s] to a special unit that deals with amended or late returns. Over two months may pass before the taxpayer receives any reply. Pay in as much of the estimated tax, interest and penalties as possible with the returns. Make sure to indicate what year each payment should be applied to. Otherwise, it will be applied to the current tax year - which is a hassle to correct.
The I.R.S. has additional triggers they consider when evaluating the situation.
How many tax years are involved?
What is the amount involved? Clearly, a $1 million unreported amount may get a different response than a $10,000 unreported amount.
What prior filing history does the taxpayer have? Is this the first issue, or part of a long history of problems?
Often, if no special issues come up, the taxpayer will receive a straightforward letter simply saying the return was received and the following tax, interest and penalties is owed. In all my experiences, if the taxpayer pays any amount due within the 30 days allowed after receiving that letter, it is very normal to never again hear from the I.R.S. with regards to that tax return for that particular year. However, nothing in this article guarantees this result.
The moral to this story is that I.R.S. policy and case law clearly MOVES TO THE SIDE OF THE TAXPAYER toward avoiding criminal prosecution the moment the taxpayer mails the unfiled or amended tax returns and pay as much of the unpaid balance due as possible.
NOTE: The Voluntary Disclosure policy does NOT apply to illegal source income. For example, unreported drug trafficking income will not qualify for the Voluntary Disclosure procedure, as that type of income is illegal under other (non-tax) laws. In contrast, there is nothing illegal about earning interest income from a Swiss bank account, so it is not illegal "source" income. However, the failure to report such income on your tax return can be a tax crime. Therefore, the Voluntary Disclosure policy can apply to the Swiss interest income.
WHEN IS THE VOLUNTARY DISCLOSURE POLICY NOT AVAILABLE?
It is important to note when a taxpayer is considered "contacted" by the I.R.S.: Again from Internal Revenue Manual Sec. 9.5.3.3.1.2.1
A disclosure is timely if it is received before:
the IRS has initiated a civil examination or criminal investigation of the taxpayer, or has notified the taxpayer that it intends to commence such an examination or investigation; the IRS has received information from a third party (e.g., informant, other governmental agency, or the media) alerting the IRS to the specific taxpayer's noncompliance; the IRS has initiated a civil examination or criminal investigation which is directly related to the specific liability of the taxpayer; or the IRS has acquired information directly related to the specific liability of the taxpayer from a criminal enforcement action (e.g., search warrant, grand jury subpoena).
If the above has occurred, please consult a tax attorney. You may actually do more harm than good by sending in a tax return (or amended return) to the IRS Service Center at this point, as the I.R.S. may consider that an attempt to work around the tax examiner who contacted you, to gain a legal advantage.
A tax evader never knows when a, b, c, or d above may occur or when an I.R.S. letter will show up in their mail box. At that moment, the opportunity to avoid criminal prosecution may be lost forever. It is an "on/off" switch for which there is precedent in I.R.S. policy and case law.
So please, if you are in this situation, get to them before they get to you, and please consider seeking competent tax advice before doing so.
The policy of most state, local and European tax authorities is similar, although you should seek advice competent in the policy of each tax authority before taking any action.
Also, assuming you have legally avoided criminal prosecution, many people try to negotiate unpaid taxes, interest and penalties. Please be very skeptical of companies that promise to negotiate your tax liability. In reality, only the bankrupt or near bankrupt qualify for these programs, and many, many people have given me feedback on how some firms take an upfront fee and then do nothing, or even make matters worse. Please be careful.
With regard to penalties to be assessed, a complete review is beyond the scope of this article except to say, they will be very significant.
Source: ezinearticles.com
The world is changing. A tax evader should seriously consider what may be the only way to stop an illegal bad situation from becoming a life-destroying criminal prosecution. Consider a Voluntary Disclosure to clean-up the past.
Based on tax law precedent going back to the 1940s, the I.R.S. and many state tax authorities have a standing polciy that, generally, they will NOT pursue criminal prosecution of tax evasion in cases where the tax evading taxpayer comes forward BEFORE they are contacted by the tax authority.
As an I.R.S. District Counsel (prosecuting attorney) once told me after a 13 week course on I.R.S. internal procedures as part of my Masters Degree program in Taxation: "If you learn nothing else in this class, remember this: If your client is in tax trouble, you need to find me before I find you."
He went on to explain that the I.R.S. wants people to be able to come back from the non-filing and non-paying underworld and get clean without fear of criminal prosecution...otherwise, tax evaders have no way to re-enter the tax system without the threat of losing not only large sums of money but also lose their liberty and living standard if they suffer criminal prosecution, versus civil (money) penalties.
Alternatively, if the I.R.S. finds or contacts a taxpayer via an audit, non-filing notices, the Form 1099 Matching Program, referrals from other non-tax prosecutions or otherwise becomes aware of significant criminal tax violations, then, their frame of mind changes. They often try to make a public example of the taxpayer and pursue criminal prosecution and jail sentences to the extent allowed by law.
It is my experience that taxpayers have to almost force the I.R.S. (by repeated bad behavior) to prosecute, as the I.R.S. has a lack of resources. They would much rather use civil penalties, liens, levies and wage garnishments which can quickly be triggered by the I.R.S. computer system to collect unpaid tax and force the taxpayer back into filing returns. But when the taxpayer ignores I.R.S. letters, disappears or is non-responsive, is under other criminal prosecution (like an arrested drug dealer) or argues the tax system is illegal or unconstitutional, the case gets elevated to where I.R.S. lawyers and criminal investigators are assigned.
At that point, the I.R.S. people involved, like all of us, want to be successful in their work; and success for them is often a criminal prosecution and a conviction. A taxpayer in that situation needs the immediate help of qualified legal counsel specializing in tax cases.
Specifically, regarding unreported offshore Income, in my opinion, you are running out of time.
Technology, the Federal and State deficits and the political winds are now all working against tax evasion with regards to unreported offshore income.
The technology is improving to catch tax evaders who often establish an offshore bank account in a country that does not share account information with the I.R.S. An A.T.M. card is often used allowing access to the funds at any A.T.M. machine in the U.S. that is in the offshore bank's A.T.M. network. The U.S. bank through which the A.T.M. withdrawal is processed becomes a legal party to the transaction. The I.R.S. has a significant project underway to drill-through the U.S. bank and find the offshore account and the U.S. taxpayer/evader.
Banks are being required to increase internal audit controls to stop inadvertently assisting tax evaders.
Recently in the news, the I.R.S. is pressuring Liechtenstein and Swiss banks to provide information on U.S. taxpayers suspected of tax evasion. Banks in the Cayman Islands and Bermuda continue to come under pressure from U.S. and European tax authorities.
Now, with the economic crisis of the last 6 months, the U.S. President and Congress and the tax authority of many countries and states see unreported income of tax evaders as "low-hanging fruit." As voters have no sympathy for offshore tax evaders, it is clear more laws and resources will be applied to pursue this unreported income.
As a result, the world is changing. A tax evader should seriously consider what may be the only way to stop an illegal bad situation from becoming a life-destroying criminal prosecution. Consider a Voluntary Disclosure to clean-up the past.
How Does A Taxpayer make a "Voluntary Disclosure?"
With regards to the I.R.S., a specific process exists for taxpayers who approach the I.R.S. with the intent to clean-up old returns. I provide five comments:
It will take many months to resolve unfiled, unreported income. Be patient!
Use complete honesty and complete disclosure in every contact with the I.R.S. or any tax authority. Remember, you are trying to avoid CRIMINAL PROSECUTION. This is not a game. Don't try playing games with partial disclosures. The worst thing you can do is hold back information at this point and be accused of lying. They have seen it all before, and they know what you are thinking, often before you do. You are coming to them for help, so provide complete cooperation. They are usually very cooperative with people who take this approach.
Keep a copy of everything you give the I.R.S. and keep a written record of every telephone conversation.
Consider getting assistance from a C.P.A., Enrolled Agent or Tax Attorney.
Don't forget the state taxes that might be involved. The I.R.S. WILL communicate the information you provide to the state tax authorities.
The starting point for a Voluntary Disclosure is no surprise. Put together your tax information for each taxable year just as if you would to originally file your tax return. Again, consider consulting with a C.P.A., and Enrolled Agent and/or a bookkeeper if you need help to get your information together.
If you can't find records, then call banks, or businesses, etc. to collect as much documentation as you can. YOU DON'T NEED TO BE PERFECT OR HAVE EVERYTHING IF IT DOES NOT EXIST. The I.R.S. understands that records from years ago may be unavailable. Reasonable estimates are fine if there is no alternative. Don't get caught in the mental trap of not filing, or waiting longer just because you can't find every record, Form 1099, receipt, bank statement or invoice.
If your return was originally filed, however, offshore (or any other type of income) was not reported, an amended tax return needs to be prepared. That is I.R.S. Form 1040X for individual taxpayers.
When you are as ready as you can be (and sooner is always better than later) to contact the I.R.S., mail everything to the I.R.S. Service Center, just as if you were filing a normal tax return, but with a cover letter. Absolutely mail it certified mail, return receipt requested and keep copies of everything and all postmarked documents (seriously) for the rest of your life. I'll skip explaining why, here.
Under Internal Revenue Manual Sec. 9.5.3.3.1.2.1, a voluntary disclosure occurs when:
The communication (tax return and/or related letter) is truthful, timely and complete. This includes:
the taxpayer shows a willingness to cooperate (and does in fact cooperate) with the IRS in determining his or her correct tax liability; and the taxpayer makes good faith arrangements with the IRS to pay in full, the tax, interest, and any penalties determined by the IRS to be applicable.
At this point, the I.R.S.sends the tax return[s] to a special unit that deals with amended or late returns. Over two months may pass before the taxpayer receives any reply. Pay in as much of the estimated tax, interest and penalties as possible with the returns. Make sure to indicate what year each payment should be applied to. Otherwise, it will be applied to the current tax year - which is a hassle to correct.
The I.R.S. has additional triggers they consider when evaluating the situation.
How many tax years are involved?
What is the amount involved? Clearly, a $1 million unreported amount may get a different response than a $10,000 unreported amount.
What prior filing history does the taxpayer have? Is this the first issue, or part of a long history of problems?
Often, if no special issues come up, the taxpayer will receive a straightforward letter simply saying the return was received and the following tax, interest and penalties is owed. In all my experiences, if the taxpayer pays any amount due within the 30 days allowed after receiving that letter, it is very normal to never again hear from the I.R.S. with regards to that tax return for that particular year. However, nothing in this article guarantees this result.
The moral to this story is that I.R.S. policy and case law clearly MOVES TO THE SIDE OF THE TAXPAYER toward avoiding criminal prosecution the moment the taxpayer mails the unfiled or amended tax returns and pay as much of the unpaid balance due as possible.
NOTE: The Voluntary Disclosure policy does NOT apply to illegal source income. For example, unreported drug trafficking income will not qualify for the Voluntary Disclosure procedure, as that type of income is illegal under other (non-tax) laws. In contrast, there is nothing illegal about earning interest income from a Swiss bank account, so it is not illegal "source" income. However, the failure to report such income on your tax return can be a tax crime. Therefore, the Voluntary Disclosure policy can apply to the Swiss interest income.
WHEN IS THE VOLUNTARY DISCLOSURE POLICY NOT AVAILABLE?
It is important to note when a taxpayer is considered "contacted" by the I.R.S.: Again from Internal Revenue Manual Sec. 9.5.3.3.1.2.1
A disclosure is timely if it is received before:
the IRS has initiated a civil examination or criminal investigation of the taxpayer, or has notified the taxpayer that it intends to commence such an examination or investigation; the IRS has received information from a third party (e.g., informant, other governmental agency, or the media) alerting the IRS to the specific taxpayer's noncompliance; the IRS has initiated a civil examination or criminal investigation which is directly related to the specific liability of the taxpayer; or the IRS has acquired information directly related to the specific liability of the taxpayer from a criminal enforcement action (e.g., search warrant, grand jury subpoena).
If the above has occurred, please consult a tax attorney. You may actually do more harm than good by sending in a tax return (or amended return) to the IRS Service Center at this point, as the I.R.S. may consider that an attempt to work around the tax examiner who contacted you, to gain a legal advantage.
A tax evader never knows when a, b, c, or d above may occur or when an I.R.S. letter will show up in their mail box. At that moment, the opportunity to avoid criminal prosecution may be lost forever. It is an "on/off" switch for which there is precedent in I.R.S. policy and case law.
So please, if you are in this situation, get to them before they get to you, and please consider seeking competent tax advice before doing so.
The policy of most state, local and European tax authorities is similar, although you should seek advice competent in the policy of each tax authority before taking any action.
Also, assuming you have legally avoided criminal prosecution, many people try to negotiate unpaid taxes, interest and penalties. Please be very skeptical of companies that promise to negotiate your tax liability. In reality, only the bankrupt or near bankrupt qualify for these programs, and many, many people have given me feedback on how some firms take an upfront fee and then do nothing, or even make matters worse. Please be careful.
With regard to penalties to be assessed, a complete review is beyond the scope of this article except to say, they will be very significant.
Please see the attached from Doug Shulman, Commissioner of the IRS, from 3/26/09: http://www.irs.treas.gov/newsroom/article/0,,id=206014,00.html.
I am always available for questions and comments at 510 797 8661 x237.
Ron Cohen is a Partner at a top Bay Area CPA Firm, Greenstein, Rogoff, Olsen & Co. He has more than 25 years experience in public accounting and related industry work. He earned an undergraduate accounting degree from the University of Illinois, Chicago, and then a Masters in Taxation from Golden Gate University. Ron has extensive knowledge in International Tax and has traveled extensively throughout Europe and Asia handling tax issues.
Saturday, November 14, 2009
Why You Must Handle IRS Issues Immediately
Author: Boris Tomson
Source: articlesbase.com
Why You Must Handle IRS Issues Immediately People who have been through an IRS problem circulated undesirable tales regarding their experience.Visit Here http://gov-debt-grantbenefit.blogspot.com ÂUnfortunately, no matter how outrageous some stories are, most of them are true in one way or another. When it comes to collecting money owed from them, the IRS is a bit aggressive at this undertaking. The IRS still wants their money whether the money is truly owed or the debt is simply a result of an IRS mistake. Hence, in situations where the taxpayers did nothing wrong, it is their responsibility to protect themselves from IRS problems. Many taxpayers who file their taxes properly and on schedule are not totally safe from IRS errors and penalties that result from these mistakes. Getting a Federal Tax lien is one of the most unfortunate IRS-related problems that you will have. With a tax lien enforced on you, your credit records will be severely affected that it's almost impossible for you to get any kind of loan. Aside from not entertaining your loan applications, the banks won't even permit you to open a new bank account. With this, it will be extremely hard for you to settle utility bills such as phone and electricity bills. For those who think that tax issues and IRS problems will merely work themselves out, they are completely wrong. The only way for an IRS problem to go away is if you pay the money that is owed, or you decide to assert your rights to the IRS. These courses of action, however, will require your money and time. It is always in your best interest to immediately take action as soon as you get a notification from the IRS. Otherwise, they IRS may enforce rigid collection techniques and charge you with interest rates as high as 25%. You'll continue being subjected to these consequences until the debt is completely paid, or until the charges are dismissed. You might also want to ascertain that you have all the necessary documents and supporting evidence in order. Not only will this help you effectively deal with the IRS, but this will also project an impression that you're ready for anything that the government will throw at you. In very serious situations, it's best that you contact a tax professional like a tax attorney or a CPA. Their education and background on the field will certainly liberate you from whatever IRS trouble you maybe into. Aside from the usual penalties that the IRS imposes on delinquent taxpayers, they can also utilize more intrusive collection procedures like wage garnishment. This is referred to as a Wage Levy. You do not want the IRS to take this action because this allows them to get as much as 75% on your paycheck. Can you live with only 25% of your net pay? The sooner you deal with your IRS problems, the sooner you will be able to negotiate with the IRS and the more difficult it is for them to impose such aggressive and intrusive actions on your finances.Visit Here http://gov-debt-grantbenefit.blogspot.com
Source: articlesbase.com
Why You Must Handle IRS Issues Immediately People who have been through an IRS problem circulated undesirable tales regarding their experience.Visit Here http://gov-debt-grantbenefit.blogspot.com ÂUnfortunately, no matter how outrageous some stories are, most of them are true in one way or another. When it comes to collecting money owed from them, the IRS is a bit aggressive at this undertaking. The IRS still wants their money whether the money is truly owed or the debt is simply a result of an IRS mistake. Hence, in situations where the taxpayers did nothing wrong, it is their responsibility to protect themselves from IRS problems. Many taxpayers who file their taxes properly and on schedule are not totally safe from IRS errors and penalties that result from these mistakes. Getting a Federal Tax lien is one of the most unfortunate IRS-related problems that you will have. With a tax lien enforced on you, your credit records will be severely affected that it's almost impossible for you to get any kind of loan. Aside from not entertaining your loan applications, the banks won't even permit you to open a new bank account. With this, it will be extremely hard for you to settle utility bills such as phone and electricity bills. For those who think that tax issues and IRS problems will merely work themselves out, they are completely wrong. The only way for an IRS problem to go away is if you pay the money that is owed, or you decide to assert your rights to the IRS. These courses of action, however, will require your money and time. It is always in your best interest to immediately take action as soon as you get a notification from the IRS. Otherwise, they IRS may enforce rigid collection techniques and charge you with interest rates as high as 25%. You'll continue being subjected to these consequences until the debt is completely paid, or until the charges are dismissed. You might also want to ascertain that you have all the necessary documents and supporting evidence in order. Not only will this help you effectively deal with the IRS, but this will also project an impression that you're ready for anything that the government will throw at you. In very serious situations, it's best that you contact a tax professional like a tax attorney or a CPA. Their education and background on the field will certainly liberate you from whatever IRS trouble you maybe into. Aside from the usual penalties that the IRS imposes on delinquent taxpayers, they can also utilize more intrusive collection procedures like wage garnishment. This is referred to as a Wage Levy. You do not want the IRS to take this action because this allows them to get as much as 75% on your paycheck. Can you live with only 25% of your net pay? The sooner you deal with your IRS problems, the sooner you will be able to negotiate with the IRS and the more difficult it is for them to impose such aggressive and intrusive actions on your finances.Visit Here http://gov-debt-grantbenefit.blogspot.com
Hi,I am Boris.If you are looking for ways to make money and you want advice on the best work from home programs you have come to the right place. I was a researcher for Make Money Magazine for 11 years, during that time I covered every make money programs in the book. Five years ago when the “How To Make Money†market changed for the better because of the internet advances I decided to use the knowledge I gained from working for Make Money Magazine to quit this job and start up my own successful home business.I am now earning close to $20,000 every month from( Google Income Plan
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Wednesday, November 4, 2009
Don't Delay In Managing Irs Tax Debt
Author: Brad Stroh -
Source: articledashboard.com
Debt Resolution, IRS Settlements Offer Help for Serious Tax Problems
San Mateo, Calif., - With tax day behind us, consumers and business owners who owe the IRS are not out of the woods. But while death and taxes are the big two inevitabilities, those with serious tax problems should know that it is possible to negotiate with the IRS to reduce past-due tax penalties and payments, according to Bradford G. Stroh, co-founder and CEO of Freedom Financial Network, LLC.
Americans, carrying more debt than ever, are also more likely to have tax problems than in the past. In 2004, the total of uncollected IRS taxes reached upwards of $250 billion. The number of levies (a key enforcement tool in which the IRS takes possession of assets to collect on unpaid taxes) topped 2 million during fiscal year 2004 - a 21 percent increase from 2003 and triple the 2001 number.
According to Stroh, taxpayers with tax debts under $10,000 usually can manage the payment on their own or via an installment plan arranged with the IRS. "Tax problems merit professional help when individuals cannot pay tax liabilities of $10,000 or more," Stroh says. "At that point, specialists can negotiate directly with the IRS on behalf of these consumers, helping them obtain settlements."
Tax relief specialists usually are attorneys or certified public accountants with special training and experience. Stroh explains that these experts can navigate the intricacies of IRS forms and calculations, help consumers understand the criteria the IRS imposes, and then help them get back into good standing with the IRS.
Depending on the severity of an individual's situation, two types of IRS settlement are available:
An offer in compromise reduces the principal amount owed to the IRS.
An installment agreement is a payment plan for the amount due and often includes reduced penalties.
"Remember that you cannot let overdue taxes languish," Stroh warns. "The IRS is serious -- and increasingly aggressive -- about tax collection and evasion. Tax debt can result in a lien on a house or garnished wages."
Advisors can help consumers with the following steps:
Evaluate the situation and determine the amount of taxes owed to the IRS.
Ascertain whether the situation meets IRS standards for "doubt as to collectability" (i.e., unable to pay the full tax burden), "doubt as to liability" (i.e., consumer might not owe the tax), or "economic hardship."
Establish the full amount owed, including taxes, penalties and accumulated interest, and understand whether collection limitations or penalty cancellations are possible.
Determine the best method for managing and eliminating the tax debt.
Negotiate with the IRS to settle on an agreed course of action and resolve the debt.
While facing and handling tax debt can be painful, last year's bankruptcy reform legislation made it even more crucial for consumers to act. Historically, consumers in severe IRS debt might file for Chapter 7 bankruptcy protection or wait for the 10-year statute of limitations on tax liability to expire. Now, people are much more limited in the ability to obtain Chapter 7 filings. The bill's new "means test" leads many consumers instead to file Chapter 13 bankruptcy, which establishes a repayment plan, rather than wiping out all debt. Consumers with tax debt may find it much less costly and simpler to work with a debt resolution firm's tax relief service, which allows individuals to set up tax payment plans while avoiding court fees, attorney fees and bankruptcy judgments on their records.
"Whatever means you choose, tax season means it's time to face the inevitable and manage your tax burdens," Stroh says. "Fortunately, experts are available to help you along the way."
Freedom Tax Relief, LLC (http://www.freedomtaxrelief.com) provides consumer debt resolution services through its Freedom Debt Relief and Freedom Tax Relief divisions. The company works for the consumer, negotiating with creditors to lower principal balances due that can often result in savings of up to half the amount owed. Based in San Mateo, Calif., Freedom Financial Network serves more than 5,000 clients nationwide and manages more than $200 million in consumer debt, offering an alternative to bankruptcy, credit counseling, and debt consolidation.
Source: articledashboard.com
Debt Resolution, IRS Settlements Offer Help for Serious Tax Problems
San Mateo, Calif., - With tax day behind us, consumers and business owners who owe the IRS are not out of the woods. But while death and taxes are the big two inevitabilities, those with serious tax problems should know that it is possible to negotiate with the IRS to reduce past-due tax penalties and payments, according to Bradford G. Stroh, co-founder and CEO of Freedom Financial Network, LLC.
Americans, carrying more debt than ever, are also more likely to have tax problems than in the past. In 2004, the total of uncollected IRS taxes reached upwards of $250 billion. The number of levies (a key enforcement tool in which the IRS takes possession of assets to collect on unpaid taxes) topped 2 million during fiscal year 2004 - a 21 percent increase from 2003 and triple the 2001 number.
According to Stroh, taxpayers with tax debts under $10,000 usually can manage the payment on their own or via an installment plan arranged with the IRS. "Tax problems merit professional help when individuals cannot pay tax liabilities of $10,000 or more," Stroh says. "At that point, specialists can negotiate directly with the IRS on behalf of these consumers, helping them obtain settlements."
Tax relief specialists usually are attorneys or certified public accountants with special training and experience. Stroh explains that these experts can navigate the intricacies of IRS forms and calculations, help consumers understand the criteria the IRS imposes, and then help them get back into good standing with the IRS.
Depending on the severity of an individual's situation, two types of IRS settlement are available:
An offer in compromise reduces the principal amount owed to the IRS.
An installment agreement is a payment plan for the amount due and often includes reduced penalties.
"Remember that you cannot let overdue taxes languish," Stroh warns. "The IRS is serious -- and increasingly aggressive -- about tax collection and evasion. Tax debt can result in a lien on a house or garnished wages."
Advisors can help consumers with the following steps:
Evaluate the situation and determine the amount of taxes owed to the IRS.
Ascertain whether the situation meets IRS standards for "doubt as to collectability" (i.e., unable to pay the full tax burden), "doubt as to liability" (i.e., consumer might not owe the tax), or "economic hardship."
Establish the full amount owed, including taxes, penalties and accumulated interest, and understand whether collection limitations or penalty cancellations are possible.
Determine the best method for managing and eliminating the tax debt.
Negotiate with the IRS to settle on an agreed course of action and resolve the debt.
While facing and handling tax debt can be painful, last year's bankruptcy reform legislation made it even more crucial for consumers to act. Historically, consumers in severe IRS debt might file for Chapter 7 bankruptcy protection or wait for the 10-year statute of limitations on tax liability to expire. Now, people are much more limited in the ability to obtain Chapter 7 filings. The bill's new "means test" leads many consumers instead to file Chapter 13 bankruptcy, which establishes a repayment plan, rather than wiping out all debt. Consumers with tax debt may find it much less costly and simpler to work with a debt resolution firm's tax relief service, which allows individuals to set up tax payment plans while avoiding court fees, attorney fees and bankruptcy judgments on their records.
"Whatever means you choose, tax season means it's time to face the inevitable and manage your tax burdens," Stroh says. "Fortunately, experts are available to help you along the way."
Freedom Tax Relief, LLC (http://www.freedomtaxrelief.com) provides consumer debt resolution services through its Freedom Debt Relief and Freedom Tax Relief divisions. The company works for the consumer, negotiating with creditors to lower principal balances due that can often result in savings of up to half the amount owed. Based in San Mateo, Calif., Freedom Financial Network serves more than 5,000 clients nationwide and manages more than $200 million in consumer debt, offering an alternative to bankruptcy, credit counseling, and debt consolidation.
Wednesday, September 30, 2009
Overview of Common Types of Tax Problems
Author: Boris Tomson
Source: articlesbase.com
Overview of Common Types of Tax Problems There are many types of tax problems that a person can encounter.Visit Here http://gov-debt-grantbenefit.blogspot.com Having to deal with tax issues can be stressful and intimidating, so understanding what types of tax problems you may encounter can better help you to prevent them from occurring. There are many different kinds of problems you can run into, some which are well known, and others which many people aren't even aware of. It can be difficult to have to deal with tax problems, because many people have an innate fear of dealing with the IRS. So when problems occur, they aren't quite sure what to do because they are hesitant to contact the IRS with questions and concerns that they may have. However, it is possible for you to research the information for yourself so that you do not have to make that dreaded phone call to the IRS for questions about your tax issues. Once you have researched the issues yourself, it is best for you to contact a professional to help you deal with the issues, before you actually contact the IRS. The first type of tax problem that people can encounter is problems with their payroll taxes. Payroll tax problems can vary and there are many different issues that can come up. The IRS is extremely relentless in making sure that they are able to collect on any past due payroll taxes that you may owe. It is very important for you to make sure that your payroll documents are up to date and that all of the tax information is correct. There are many cases with employers making typo errors on your tax documents that you may never be aware of. For this reason, it is important that you periodically ask your employer to review your payroll tax documents to ensure the information is correct. You also need to make sure that you often review your payroll stubs and keep track of the payroll taxes are being taken out, so that you can ascertain whether they are taking the right amount of taxes out or not. Another one of the types of tax problems you may encounter are IRS tax liens. A tax lien shows that you already owe the IRS back taxes. Tax liens can be placed upon your personal property such as your home or other types of real estate you may have such as a business location. If a tax lien is placed against your property, you will be unable to transfer or sell ownership of that property without first paying off your back taxes and having the lien removed. Trying to prevent a tax lien is in your best interest. Most people don't have the extra funds laying around to pay off a tax lien. They then realize they are in a real predicament because with a tax lien on their property, they are unable to get a loan to pay off the back taxes. The best way to prevent this of course, is to pay your taxes on time and not have a lien placed against you. An IRS levy is another of the types of tax problems that can occur. A levy is an actual attempt by the IRS to receive payment from you to pay off your back taxes. This can cause a great deal of financial burden to you, as a levy can drastically cut into the money that you have coming in. With an IRS levy, the IRS has the ability to take the money owed to them from your checking or savings account, if you have money is these accounts. However, the levy can only be placed against the account for one particular day. The bank must then withdraw any money in the accounts and send it to the IRS. The IRS cannot take any additional deposits that you may make into these accounts unless they place another levy against the account. The IRS levy can also garish your wages, so that the money they are owed is taken from your paycheck. This can result in you loosing your entire paycheck to the IRS, which will certainly put you in a real bind. Other types of tax problems that can occur are IRS seizures, wage garnishments, IRS audits and unfiled tax returns. All of these issues can cause severe issues with your taxes and greatly affect your life and your finances. It is extremely important that you retain all the necessary tax documentation that you have so that if you are audited, you can provide the information to the IRS to help prevent any action from being taken against you. Of course, preventing this negative action is only going to work if you have been truthful on your tax forms and have provided all the necessary information that is requires to ensure that you are paying the right amount of taxes. If an audit shows that you have missing tax income and unpaid taxes, this can lead to the IRS placing wage garnishments against you and seizing assets to cover the cost of your unpaid tax debt. These are just some of the types of tax problems that a person can encounter. There are of course other types of tax problems that can arise, which is why it is so important to ensure that you are properly paying your taxes every year. To prevent these types of tax problems from happening, you need to make sure that your payroll taxes are being taken out and paid properly and that you are filing your taxes each year to ensure that you do not owe any money to the government. When you file your taxes, make sure that you claim all of your income, so that if the IRS decides to do an audit, you do not end up in trouble for unpaid taxes that they may find. This is one of the number one causes of tax problems that are encountered. Properly taking care of your taxes is one of the best things you can do in life, and will prevent these types of tax problems from occurring.Visit Here http://gov-debt-grantbenefit.blogspot.com
Source: articlesbase.com
Overview of Common Types of Tax Problems There are many types of tax problems that a person can encounter.Visit Here http://gov-debt-grantbenefit.blogspot.com Having to deal with tax issues can be stressful and intimidating, so understanding what types of tax problems you may encounter can better help you to prevent them from occurring. There are many different kinds of problems you can run into, some which are well known, and others which many people aren't even aware of. It can be difficult to have to deal with tax problems, because many people have an innate fear of dealing with the IRS. So when problems occur, they aren't quite sure what to do because they are hesitant to contact the IRS with questions and concerns that they may have. However, it is possible for you to research the information for yourself so that you do not have to make that dreaded phone call to the IRS for questions about your tax issues. Once you have researched the issues yourself, it is best for you to contact a professional to help you deal with the issues, before you actually contact the IRS. The first type of tax problem that people can encounter is problems with their payroll taxes. Payroll tax problems can vary and there are many different issues that can come up. The IRS is extremely relentless in making sure that they are able to collect on any past due payroll taxes that you may owe. It is very important for you to make sure that your payroll documents are up to date and that all of the tax information is correct. There are many cases with employers making typo errors on your tax documents that you may never be aware of. For this reason, it is important that you periodically ask your employer to review your payroll tax documents to ensure the information is correct. You also need to make sure that you often review your payroll stubs and keep track of the payroll taxes are being taken out, so that you can ascertain whether they are taking the right amount of taxes out or not. Another one of the types of tax problems you may encounter are IRS tax liens. A tax lien shows that you already owe the IRS back taxes. Tax liens can be placed upon your personal property such as your home or other types of real estate you may have such as a business location. If a tax lien is placed against your property, you will be unable to transfer or sell ownership of that property without first paying off your back taxes and having the lien removed. Trying to prevent a tax lien is in your best interest. Most people don't have the extra funds laying around to pay off a tax lien. They then realize they are in a real predicament because with a tax lien on their property, they are unable to get a loan to pay off the back taxes. The best way to prevent this of course, is to pay your taxes on time and not have a lien placed against you. An IRS levy is another of the types of tax problems that can occur. A levy is an actual attempt by the IRS to receive payment from you to pay off your back taxes. This can cause a great deal of financial burden to you, as a levy can drastically cut into the money that you have coming in. With an IRS levy, the IRS has the ability to take the money owed to them from your checking or savings account, if you have money is these accounts. However, the levy can only be placed against the account for one particular day. The bank must then withdraw any money in the accounts and send it to the IRS. The IRS cannot take any additional deposits that you may make into these accounts unless they place another levy against the account. The IRS levy can also garish your wages, so that the money they are owed is taken from your paycheck. This can result in you loosing your entire paycheck to the IRS, which will certainly put you in a real bind. Other types of tax problems that can occur are IRS seizures, wage garnishments, IRS audits and unfiled tax returns. All of these issues can cause severe issues with your taxes and greatly affect your life and your finances. It is extremely important that you retain all the necessary tax documentation that you have so that if you are audited, you can provide the information to the IRS to help prevent any action from being taken against you. Of course, preventing this negative action is only going to work if you have been truthful on your tax forms and have provided all the necessary information that is requires to ensure that you are paying the right amount of taxes. If an audit shows that you have missing tax income and unpaid taxes, this can lead to the IRS placing wage garnishments against you and seizing assets to cover the cost of your unpaid tax debt. These are just some of the types of tax problems that a person can encounter. There are of course other types of tax problems that can arise, which is why it is so important to ensure that you are properly paying your taxes every year. To prevent these types of tax problems from happening, you need to make sure that your payroll taxes are being taken out and paid properly and that you are filing your taxes each year to ensure that you do not owe any money to the government. When you file your taxes, make sure that you claim all of your income, so that if the IRS decides to do an audit, you do not end up in trouble for unpaid taxes that they may find. This is one of the number one causes of tax problems that are encountered. Properly taking care of your taxes is one of the best things you can do in life, and will prevent these types of tax problems from occurring.Visit Here http://gov-debt-grantbenefit.blogspot.com
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