There are times when an individual isn't able to pay his or her taxes or disputes the amount owed. Whatever the case, many hard-working and honest Americans struggle with tax debt problems. Previously, the IRS took action to handle these cases by sending notices to delinquent taxpayers and requesting payment. A taxpayer then had the options to work with the agency to sort out a repayment plan, have a portion of his or her tax debt forgiven or dispute the matter.
In addition to costly fines and penalties and the threat of possible time behind bars, the Internal Revenue Service just gave taxpayers another motivating reason to pay their taxes one time. Earlier this month, members of the U.S. Congress passed a major highway and transportation bill known as the Fixing America's Surface Transportation Act or FAST Act.
In previous blog posts we've discussed IRS tax levies and liens. To review, in cases where a taxpayer owes the IRS money, the agency can put a lien on a taxpayer's property to ensure that any proceeds from the sale of the property can be seized by the IRS in an effort to repay back taxes. If the IRS imposes a tax levy, the agency can garnish assets held in bank accounts and from an individual's wages to recoup unpaid tax debt.
Annually, millions of Americans purchase lottery tickets, bet on the race track or try their hand at the black jack table or slots at a casino. For those who are lucky enough to come out ahead, Uncle Sam demands a cut. Yes, gambling wins are taxable and the IRS expects that those who play and win, will pay.
In our last blog post, we began discussing actions that a small business owner may take that can put him or her at an increased risk of being audited by the Internal Revenue Service. We've already mentioned how misclassifying employees and failing to maintain organized and accurate business and financial records can land a business owner in hot water with the IRS. In this post, we'll discuss some other business and tax-related faux pas that may raise a red flag that a small business or business owner isn't tax-compliant.
If you have received a CP 2000 Notice from the IRS, you may be wondering what it means and whether you are being audited or you could be in trouble. We will address all of these questions today in this blog post.
It's April 16 and the Internal Revenue Service’s deadline to file income tax returns has officially passed. Today, individuals who procrastinated and filed at the eleventh hour, are likely filled with a sense of relief and satisfaction in knowing they made the dreaded deadline and don't have to deal with taxes for another 12 months. However, individuals who missed the tax deadline are likely experiencing feelings of uneasiness and dread.
We recently wrote a blog post discussing the Internal Revenue Service's offer in compromise program. A delinquent taxpayer's acceptance into the program affords an individual the opportunity to repay tax debt based upon one’s current financial situation and ability to pay. The IRS' offer in compromise program is just one option for individuals with back taxes. Another option is to enter into a formal payment plan or installment agreement with the IRS.
There was a time when "haggling" was considered a legitimate strategy in most transactions. These days, big-box retailers and grocery stores are not really willing to listen to customers trying to pay less than the advertised price. Haggling is now pretty much limited to car dealerships and certain hotels.
Tax debt can add up quickly, and when it does, getting up to speed with the IRS may seem like an impossibility. Taxpayers, to be sure, are not necessarily required to pay all their tax debt back immediately. There is the possibility of paying the debt back on a monthly basis through an installment agreement.