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Posts Tagged ‘tax debt’

dangers of failing to file

The Dangers of Failing to File

January 01, 2016

Failing to file a tax return can lead to serious consequences. Taxpayers that do not file their tax returns before the filing deadline face penalties and interest on the taxes owed. The penalty is charged every month on the total back taxes. Due to the accumulation of penalties and interest, the amount of unpaid taxes increases substantially with time. Penalty For Non-Filing Failure to file a return and failure to pay taxes are different kinds ...

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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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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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common causes of tax debt

Common Causes of Tax Debt

February 20, 2015

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 ...

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frivolous tax arguments

Frivolous Tax Arguments

January 23, 2015

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 ...

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irs collections process

The IRS Collections Process – What Happens When You Don’t File and Pay Your Taxes

December 05, 2014

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 ...

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