TaxAudit Blog: Tax Debt Relief
A tax lien occurs when the IRS makes a legal claim to your property to settle a tax debt. There are options if you can't pay the total amount or disagree.
The IRS treats payroll tax liability lapses as a very serious offense and makes it a priority within their enforcement wing to collect these amounts.
Let's talk about small businesses and one of the most common tax issues they face: making sure their payroll tax is taken care of timely and properly.
A levy is when the IRS is permitted to garnish someone’s wages, bank accounts, property (such as a house or car), investments, etc. to satisfy a tax debt.
Currently Not Collectible (CNC) is when the IRS determines that you are financially unable to pay the tax debt that you owe, so they put your debt on hold.
Penalty abatement is the process of requesting the IRS remove penalties (this is called abatement). You need to demonstrate that there is a "reasonable" cause.
Due to seriously delinquent taxes,you could receive an IRS letter stating that your passport is being revoked or your passport application is being denied.
What is an Audit Reconsideration? If a taxpayer goes through the audit process but disagrees with the results, they can request an Audit Reconsideration.
If you received a letter from an IRS Revenue Officer, you might be wondering what that means and what steps you should take next.
What if your spouse filed a return and failed to report income or overstated deductions – and you had no idea? This is where Innocent Spouse Relief comes in.
The amount of tax debt relief a person can receive depends on their financial situation. Many options are available to those who have outstanding tax debt.
Taxpayers cannot always pay the full amount they owe to the IRS. Taxpayers can use an installment agreement to pay off their debt over time.
It generally takes six months to two years to resolve a tax relief case. However, it can take longer than two years depending on the complexity of the issue.
If you are facing wage garnishment or are worried that the IRS may enact this levy on your wages, continue reading to learn more about it and how to stop it.
Our service costs generally range between $1,000 and $5,000, depending on multiple factors including the complexity and the estimated time it takes to resolve.
Yes, tax relief is available for state taxes. Most states have put programs into place to assist taxpayers who are unable to pay their tax balance due in full.
We will be talking about whether the “pennies on the dollar” claims for tax debt relief that you hear on radio or late-night TV ads are real.
An Audit Reconsideration requests the IRS reopen a previously closed audit case. It can be requested after the audit occurrs and the tax remains unpaid.
Yes, Tax Debt Relief is available for businesses. Read more about tax debt issues businesses face such as Employment Tax Issues, Trust Fund Taxes, etc.
Let's talk about how the Tax Debt Relief process at TaxAudit works so you can decide if our company is the best for you.
The first thing you want to do when choosing a tax debt relief company is confirm you are speaking to a licensed tax professional - EA, CPA, or tax attorney.
Do you have tax debt? Would repaying this debt cause you financial hardship? If so, you may be eligible for Currently Not Collectible status through the IRS.
An IRS levy is the actual seizure of property you own. An IRS lien is a public document that notifies any creditors that the IRS has a right to your property.
Per the collection statute expiration date, the IRS generally has 10 years from the date they assess your tax balance to collect taxes owed.
If you can show that there was “reasonable” cause for the understatement or for failure to file or pay on time, you may be able to get those penalties abated.
One of the most valuable tools to protect yourself against IRS collection actions – particularly against liens and levies – is a collection due process hearing.
Receiving notice of an IRS levy can cause a lot of anxiety. How you can prevent an IRS levy from occurring or release a levy once it has occurred?
Fortunately, there are a myriad of tools available for taxpayers who want to tackle their tax debt issues and dispute the collection actions taken by the IRS.
An IRS Installment Agreement can be very easy or complicated, depending on your circumstances.
IRS notice CP523 informs you the IRS intends to terminate your installment agreement or payment plan because they haven't received one or more monthly payments.
An IRS Offer Compromise is an attempt to settle your tax liability with the IRS for less than what is owed. There are three types of Offers in Compromise.
If you’ve received an IRS deficiency or IRS determination and disagree with the changes, how can you dispute them? Read on because we’re here to help!
If you received an IRS notice CP521, it is because you entered into an installment agreement with the IRS for taxes owed and your monthly payment is now due.
IRS letter CP91 states that the IRS may seize up to 15% of your Social Security because you have an unpaid tax balance due. What can you do if you get a CP91?
The taxpayer owed over $30,000 in back tax debt that she couldn’t afford to pay. Not knowing what to do, the taxpayer contacted TaxAudit for help.
You just received an IRS Notice CP90 - Intent to Levy and Unpaid Taxes - in the mail. Don't panic. Let's walk through the letter and determine your next steps.
They received an IRS tax notice demanding payment for over $600,000 in tax, interest, and penalties. Not knowing what to do, they contacted TaxAudit for help.
IRS CP22E notice is the result of a recently completed audit. Because of the changes made to your tax return during the examination, you now have a balance due.
If you have a pending tax bill, putting the IRS and a bond payment together might be what works for you. How can a bond payment help you with the IRS?
Thirty days from the date of the IRS Notice CP90, the IRS has the right to begin taking assets. This can include bank accounts, wages, and retirement accounts.
The IRS will calculate your interest and penalties daily and add them to the amount of tax debt you owe. Tax debt increases each day at an annual rate of 7.25%.
A tax refund offset can indeed be reversed – but it is not a simple matter. It would be much better for taxpayers to prevent the offset from happening.
Rest assured that there are extensive resources available to help a taxpayer who owes more taxes than he or she can pay. Let explore some options.
The Department of Treasury is authorized by the U.S. tax code to withhold part or all of a taxpayer’s Federal tax refund to pay past-due debt of $25 or more.
An IRS Notice CP49 is a letter from the IRS informing you that they used all or part of your tax refund to pay a past-due tax debt that you have.
There are many ways taxpayers can deal with getting their tax debts settled but the best path for each taxpayer depends on the circumstances of their case.
A tax refund offset occurs when the Federal Government’s Treasury Offset Program withholds part or all of an expected Federal tax refund to pay past-due debt.
The State of Mississippi’s Department of Revenue (DOR) provides a number of different methods for you to deal with your tax problems and get your debt resolved.
Even though the amount you owe the State of New York Taxation Department seems overwhelming in terms of your ability to pay, there are some options open to you.
The IRS CP22A notice is letting you know that changes were made to your filed tax return, and because of this, there is now a balance owed.
The IRS wants to get paid but it understands a lot of folks cannot pay in full right away, so the IRS created several ways to work with taxpayers who owe money.
Falling behind on your California payroll tax payments effects not only your employees, but also on your business operations as the EDD imposes penalties.
If the IRS hasn't debited your accound payment, the first step is to contact your bank to see if the payment has been taken from your account.
The IRS is billed you $4,000 due to a $8,000 capital gain or dividend. You don’t know what the $8,000 is from and believe if inherited it should be tax free.
Fortunately, the short answer to the original question is yes, Illinois state payroll tax debt can quite possibly be reduced.
The IRS has the power to impose some very strong penalties for businesses that fall behind in their obligations to make the scheduled payroll tax deposits.
An Offer in Compromise may help certain taxpayers who cannot pay their tax debt to the California Franchise Tax Board in full. Let's review the requirements.
The IRS has established payment programs to allow a personal or business debt to be paid off over an agreed period of time. Here's how to set up a payment plan.
Taxpayers receive an IRS CP503 because they have an unpaid tax debt. This is the 2nd notice the IRS sends taxpayers that they have an outstanding balance due.
You can indeed arrange IRS payments. You can negotiate a plan with the IRS to pay your debt off in either a short-term or long-term series of installments.
Can you negotiate to avoid a wage garnishment before it starts? Can you negotiate the amount of the wage garnishment? Let's explore the answers.
You owe money to the IRS and you can’t pay it all off right now. Let's explore different payment plan options based on your tax situation.
The IRS treats payroll tax debt seriously. Any employer or employee whose job it is to collect and pay the taxes, but willfully fails, can be held responsible.
If the IRS applies your payment to the wrong tax year, they will generally fix the issue once they know the problem. Let's learn more.
The IRS has an Offer in Compromise program to allow qualified taxpayers settle their tax debt for less than the full amount owed. Here's what you should know.
A taxpayer can seek relief from a spouse's tax burden by applying for the Innocent Spouse program or the Injured Spouse program, depending on the circumstances.
The IRS uses an annually updated wage garnishment table to determine how much the taxpayer needs to live on and then the IRS takes the rest.
The IRS offers a series of payment plan options for those individuals and businesses who need more time to pay their tax debt.
The IRS takes payroll tax debts very seriously and has the power to impose some very strong penalties for businesses who fall behind in this area.
Two payroll tax deferral programs were launched in 2020 in an attempt to relieve the cash flow squeeze that was affecting both businesses and their employees.
The IRS has a fixed amount of time to try to get you to pay your tax debt. This fixed period is known as the “statute of limitations,” which generally 10 years.
If you owe the IRS money for taxes and have not been able to pay or make other arrangements, the IRS has the legal right to seize some of your possessions.
Yes, the IRS does offer payment plans to those taxpayers who owe taxes. The IRS offers a series of payment plan options for those who need more time to pay.
You received an IRS notice CP162 in the mail. You are probably wondering why you received this notice and what it means – we are here to answer your questions.
If the IRS is taking your refund, sometimes you need a qualified tax professional who understands IRS collection procedures to intercede on your behalf.
As the person wrapping up your loved one’s financial affairs, you know at the very least you will need to file their final individual income tax return.
When you owe money to the IRS, they can take a variety of actions against you to collect the balance due. You can repay the IRS debt using unemployment checks.
Communicating with the IRS to work out a payment plan, put a hold on your account, or even negotiate a lesser amount due may help delay or avoid the IRS levy.
TaxAudit specializes in tax relief help, and we are so confident in our ability to help taxpayers navigate tax debt - we believe we have it down to a science.
TaxAudit provides Tax Debt Relief services that make dealing with the IRS or state less stressful. We know the the laws regarding taxes and tax debt collection.
There are many options for managing your small business tax debt. A tax resolution specialist from TaxAudit can guide you in choosing the best approach.
If you find yourself with tax debt due to unpaid payroll taxes, you may have options to help settle the debt. Let’s review some payroll tax debt relief options.
If you have a large tax bill, figuring out your options for getting out of tax debt can be stressful. Thankfully, there’s a proven approach you can follow.
Many taxpayers who owe back taxes look for a way to get their tax debt forgiven. The availability of tax debt forgiveness depends on a variety of factors.
The IRS has several courses of actions they can take to collect funds owed to them. The three most common are liens, levies, and garnishments.
If you’re struggling with back taxes, you may be able to qualify for assistance under an IRS initiative called Fresh Start. Here are 3 ways to be eligible.
Yes, the length of time the IRS is allowed to collect a tax debt is generally limited to 10 years. Is waiting out this period a strategy for resolving tax debt?
When a taxpayer fails to file their return, the IRS will come knocking usually in the form of a notice of tax due for back taxes. Back tax help is available.
If you qualify, Innocent Spouse Relief can help remove or particialy remove a tax burden from an innocent spouse.
Taxpayers who are behind on their federal taxes may be surprised to know that their Social Security benefits are ripe for the picking by the IRS.
Back taxes are defined as taxes that were not paid in the year they were due. Penalties and interest may also get tacked onto back taxes if they remain unpaid.
One way to find out how much money you owe the IRS is to use the IRS Online Account tool, which allows you to view helpful information about how much you owe.
If you haven’t received a notice from the IRS, but think you might owe money to the IRS, you can also utilize the IRS' Online Account tool.
Generally, the IRS has ten years from the date tax is assessed to collect a delinquent tax liability. However, the answer is not that straight forward.
A lien is when the IRS makes a legal claim to property as security for the payment of tax debt. There are many methods to resolve an IRS tax lien.
The fastest answer is how far back do you need to file? How deep do you want or need to dig into your records to get your taxes up-to-date with the IRS?
You are ready to begin the process of preparing your back taxes – but you realize your records are lost. Never fear. There are ways to rebuild your records.
The IRS takes payroll tax delinquency seriously – so seriously that IRS Revenue Officers have closed down businesses for not paying them. Tax help is available.
The thought of owing the IRS money can be a scary thought – especially if you’re not sure you do! The IRS has provided tools to help taxpayers like you!
The IRS denied your request, so what now? What if you do not have resources to pay the additional tax that may not have been yours to begin with?
Generally, as long as the incarcerated person is a US citizen (or resident alien), has a valid SSN, and is not claimed as a dependent, they may qualify.
What a satisfaction it is saying goodbye to old debts. There are several options available to taxpayers who want to make a payment for back taxes to the IRS.
When you can't make your tax due payment without impacting your ability to pay for living expenses, the IRS can put you in Currently Not Collectible status.
There are a bevy of options available to taxpayers who want to make a payment to the IRS online. The IRS even has an app for that!
When a taxpayer does not file their income tax return or ignores an audit notice, the IRS makes tax assessments based on info received from third parties.
If you are buckling under the weight of an IRS wage garnishment, it is time to get yourself free! We have seven practical ways to stop an IRS wage garnishment.
When people ask me for advice on how they should deal with filing unfiled tax returns, I usually tell them to file the most recent year first.
Knowing whether you are liable for back taxes owed by your spouse depends upon a variety of factors. Let's discuss the various aspects of spouse liability.
When a taxpayer receives a collection notice from the Internal Revenue Service, their typical first reaction is one of panic but it doesn't have to be scary.
CNC status is for taxpayers who cannot make any tax debt payments without seriously jeopardizing their ability to pay for their basic living expenses.
The IRS can attempt to collect unpaid taxes for ten years from the time the tax was assessed. The IRS can try to collect the tax in a variety of ways.
If you owe the IRS back taxes, don’t start spending your refund before it arrives. The IRS can levy or take your refund and apply it to your tax debt.
With innocent spouse relief, you can request the IRS remove your liability for taxes, penalties, and interest owed on income your spouse did not report.
First, it is essential to make sure you actually owe the tax due. The next step is to figure out how to pay the tax as quickly and painlessly as possible.
A person may be relieved of paying some or even all of the tax, penalties, and interest on a tax debt if they meet the conditions for Innocent Spouse Relief.
The interest rate charged by the IRS on back taxes is the federal short-term rate plus 3%. The rate is set every 3 months.
Yes, there are legitimate tax relief companies that can help you reduce your tax debt. However, there are scam companies as well. Learn what to look out for.
The employer has the job of gathering the information needed from the affected employee to determine the correct wage garnishment amount from the IRS tables.
If you need some time to pay, the IRS has payment plan options available. (1) Short-term payment plan (2) Long-term payment plan (paying in more than 120 days)
Yes, it is possible to make a deal to keep the IRS from garnishing your paycheck. Making payment arrangements with the IRS maybe all that is needed.
When you enter into a payment plan with the IRS, known as an Installment Agreement, the IRS will release an active wage garnish order.
In 2011, the IRS launched the Fresh Start program and has since expanded the program in the hopes of assisting more taxpayers who carry federal tax debt.
Generally, yes. If you owe back taxes or have a payment agreement with the IRS, you will still receive a stimulus check if you are eligible to received one.
Thankfully, for those who owe federal income taxes on their 2019 individual income tax return or are on the hook for prior tax years, help has arrived.
The IRS may collect federal taxes that are due by garnishing (levying) a taxpayer’s wages. The IRS will notify your employer to begin garnishing the wages.
The Fresh Start program is designed so that taxpayers pay their debt in full within six years, and without a serious financial burden being placed upon them.
Yes, it is possible to pay taxes in installments. For many people, the process of applying for an installment plan with the IRS may not be difficult.
Two words: almost anything. Wages, retirement accounts, bank accounts, vehicles, houses, furniture, and even passports are all fair game.
No matter the cause of each person’s tax debt, there are a number of different programs offered by the IRS to help taxpayers get back into the good books.
Options are available to those who cannot pay their taxes in full by the deadline. A good line of communication with the CA Franchise Tax Board is critical.
Having a tax bill is not a situation anyone wants to be in. Fortunately, there are ways to deal with tax debt owed to the IRS. Let's explore a few solutions.
The answer to this depends on your particular financial circumstances, how much you owe the IRS, and why you owe them money in the first place.
If certified by the IRS to have seriously delinquent tax debt, the U.S. State Department can deny passport applications or revoke currently active passports.
With excellent customer service and well-trained tax professionals, TaxAudit is set up to be the best tax debt relief program in the industry. Here's why:
Millions of individuals and business owners in America currently have unpaid IRS tax liabilities. Here are a few items to consider for tax debt relief options.
You can call the IRS to see if your refund has been flagged for garnishment. Then you can reach out to set up a payment plan − if warranted.
If you paid off a prior year state or local tax obligation to your state, you can include these payments as a state tax deduction, subject to the $10,000 cap.
If you are in a domestic abuse type situation, it is important to understand your rights as a taxpayer so that you can safeguard your finances for the future.
The IRS can request the State Department to revoke a currently active passport of a U.S. taxpayer with severely delinquent tax debt.
If you had a debt forgiven and you were personally liable for the debt, you will likely receive a Form 1099–C, Cancellation of Debt.