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Posts Tagged ‘back taxes’
What To Do When Your Wages Are Garnished
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 ...
read more »Avoiding Tax Evasion
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 ...
read more »Everything You Need to Know About Tax Debt Statute of Limitations
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 ...
read more »The Dangers of Defaulting on Your Installment Agreement
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 ...
read more »After Tax Season. Refund Problems and Back Taxes
The hardest part of preparing and filing taxes is over. There are some issues, however, that can prolong your tax concerns. These issues are: Not receiving your refund on time Receiving a refund that is different from what you estimated Inaccuracies on your return Owing to a balance to the IRS Refund delays may be attributed to inaccuracies in your tax return. If you filed a paper return, your refund could ...
read more »Common Causes of Tax Debt
Taxpayers do not always wind up with a tax debt because they do not pay their taxes on time. In certain instances, a tax debt may come as a surprise. To better understand what to expect, consider these common causes of tax debt: Non-Payment of Taxes A common cause of tax debt is not paying what is owed before the filing deadline. If a taxpayer does not pay their entire tax bill during the filing period, the ...
read more »Frivolous Tax Arguments
Some taxpayers who are in tax debt try to avoid paying what they owe by using arguments that are not reasonable. A common example of a frivolous tax argument is that you don’t believe in taxes. Such arguments, when presented before the court, do not stand up, and therefore, should be avoided in the first place. The Right to Challenge The IRS Every taxpayer has the right to contest their tax liabilities and challenge the IRS in ...
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 ...
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