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Archive for the ‘Tax Debt’ Category

bank levy

What to Do When You Have a Bank Levy

February 15, 2016

In a bank levy, the IRS requests that a bank transfer funds from a delinquent taxpayer’s bank account to settle back taxes. A bank levy can cause financial strain on the taxpayer, as the entire amount of the account – up to the full amount owed – can be taken. If you're facing a bank levy, follow these steps. 1. Contact the IRS To get a levy released, you may either contact the IRS yourself or have ...

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wages are garnished

What To Do When Your Wages Are Garnished

February 05, 2016

When back taxes go unpaid, the IRS can place a levy on a taxpayer’s wages, property, right to property, and bank accounts. Worse, the tax agency does not need a court order to do so. When it comes to your wages, you may want to review some basic steps to avoid a garnishment: File Back Tax Returns If you did not file a return for any year, you should file as soon as possible. An IRS ...

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when the irs seizes property

When The IRS Seizes Property

January 22, 2016

If a taxpayer owes back taxes and did not make satisfactory efforts to resolve them, the IRS can ultimately seize the individual’s property. The government can seize the property, bank account, wages, or a taxpayer’s assets to recover unpaid taxes. Typically, seizing physical property is the last resort method. IRS Collection Action When the IRS seizes property, they will sell the taxpayer’s interest in the property and apply the proceeds to back taxes. Before the sale, the ...

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irs notices

The Dangers of Ignoring IRS Notices

November 13, 2015

The IRS sends notices to inform taxpayers about the taxes they owe past the payment deadline. Sometimes, even after a taxpayer has paid their tax liability in full, they may owe more in taxes due to inaccuracies on the tax return. Whether a taxpayer has filed a return or not, the IRS will demand payment if the full tax bill hasn’t been paid. Placement of a Federal Tax Lien If the IRS notices regarding the payment of ...

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avoiding tax evasion

Avoiding Tax Evasion

September 11, 2015  |   Last modified on May 21, 2021

Tax evasion is an illegal activity that can result in criminal charges and substantial tax penalties. Although it is often intentional, even a well-meaning taxpayer may find themselves inadvertently facing charges of tax evasion. What Can Get You Into Trouble With The IRS? Many tax evasion cases start with a tax audit. During the audit, the IRS may find errors or omissions that the taxpayer knowingly committed. If there is a pattern of deceit over several years ...

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criminal charges

When Does The IRS Pursue Criminal Charges?

July 25, 2015

Violations of the Internal Revenue Code, such as tax evasion and tax fraud, may lead to criminal charges. Cases of tax evasion are dealt with most severely and are more likely to lead to criminal charges. Tax fraud, on the other hand, usually leads to civil penalties but it can lead to criminal charges, as well. Investigation by the IRS The IRS receives information about tax fraud and tax evasion from its revenue officers, the United States ...

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tax resolution help

Top 5 Reasons to Hire Professional Tax Resolution Help

July 09, 2015

Many taxpayers choose to hire professional tax resolution help because they are unfamiliar with tax debt rules and IRS regulations. Whether it is collecting back taxes or reducing tax debt, the IRS has to follow guidelines set by the Internal Revenue Manual. That makes it important for taxpayers to understand the tax rules that impact their tax debt case. Those taxpayers that can afford to hire professional help may do so and gain the following ...

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tax debt statute of limitations

Everything You Need to Know About Tax Debt Statute of Limitations

June 26, 2015

The IRS has 10 years to collect back taxes. This time limitation is known as the tax debt statute of limitations. It is also commonly called the collection statute. According to the IRS, “a statute of limitation is a time period established by law to review, analyze and resolve taxpayer and/or IRS tax-related issues.” This rule is not law, and therefore, can be broken by the IRS. There have been rare instances when the IRS tried ...

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defaulting on your installment agreement

The Dangers of Defaulting on Your Installment Agreement

June 19, 2015

You applied for an installment agreement and qualified for it. You begin to make monthly payments. So far so good. But in a month, you do not make a payment or pay less than the minimum monthly payment. Without regarding your reason for non-payment, the IRS terminates your agreement. You are back to square one. Factors Affecting Your Agreement When your agreement is designed, the minimum payment you are required to pay each month is determined. It ...

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bankruptcy and tax debt

Bankruptcy and Tax Debt

April 24, 2015

If you are in bankruptcy proceedings and have tax debt, you can have your debt discharged under Chapter 7 and Chapter 13 of the bankruptcy code. Income tax debts, however, cannot typically be discharged under Chapter 13. For discharging tax debt, Chapter 7 is often preferred over Chapter 13. Chapter 7 allows full discharge of allowable debts whereas Chapter 13 offers the opportunity to repay part of the debt (some debts are dischargeable). Basic Rules for ...

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