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IRS Installment Plans
Taxpayers that have the financial strength to pay the full amount of their tax debt, but not in a lump sum can pay their back taxes in installments. The IRS reviews the financial information of the taxpayer to determine their ability to pay. If the IRS finds that the taxpayer can pay their full tax debt, then it offers the taxpayer the choice either to pay the entire tax debt in one payment or pay ...
read more »What is Wage Garnishment and What Can The IRS Take?
Wage garnishment allows the IRS to collect back taxes from individuals by taking money from his or her bank account or wages. If a taxpayer has the financial ability to pay and ignores or refuses to pay the tax debt, then the IRS can use garnishment to satisfy the tax debt; this can be partially or fully, depending upon the taxpayer’s financial condition. Before using garnishment to satisfy a tax liability, the IRS sends multiple ...
read more »The IRS Collections Process – What Happens When You Don’t File and Pay Your Taxes
If you do not pay your tax liability before the filing deadline, the IRS treats the taxes owed as back taxes. If you are required to file a return and you do not file, even if you do not owe, the IRS will charge a failure-to-file penalty for non-compliance. If, on the other hand, you file your tax return but do not pay your taxes in full, then the IRS will charge a failure-to-pay penalty ...
read more »Why Your Tax Debt Might be Currently Not Collectible
You may feel a financial strain from day-to-day living from simply not making enough money or being stretched too thin with credit card debts. If you add a tax debt into the mix, it may push your finances to the breaking point. Fortunately, the IRS makes exceptions for those facing financial hardship as a result of having to pay back taxes. Depending on the severity of your circumstances, you may be eligible for Currently Not ...
read more »What is Penalty Abatement?
Owing tax debt to the IRS is a headache enough. Penalties make resolving a tax debt seem like fighting an uphill battle. A tax debt that might have been paid off with a bonus or an extra job during the holiday season can suddenly seem impossible to ever pay back when the following is added onto them: Failure-to-File Penalties ranging from 5% to 25% of the tax debt of that particular tax return Failure-to-Pay ...
read more »What is a Tax Lien and Why Should Anyone Care?
Lien and levy are two terms the public hears quite often and typically within the same sentence. While both are collection measures taken by the IRS, they are very different. A levy often results in a taxpayer’s money being taken from his or her wages or a bank account. This is a simple enough concept to grasp. Liens, on the other hand, are very rarely understood by even those who have one placed against ...
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