Thursday 14th of December 2017 8:17:15 AM

  • Debt Consolidation

    Friday 27th of June 2014 9:46:27 AM

    Mortgage, cell phone, car payment, insurance, cable, household utilities and various other loans can all add up and be difficult to keep track of. Before you know it, you feel like you’re doing nothing but paying bills and feeling like the items you own, own you. It’s a cycle that never seems to end and only gets worse over time. One way to keep a cap on this is to consolidate your debt. There are a few ways you can manage your debts by consolidating them into one lump sum to save you money. But it is definitely hard when you owe the IRS in tax debt. The IRS has multiple ways to get your money, here are some that might ring a bell.

    Wage Garnishment

    This is a tool the IRS will use to take money directly from your paycheck. They will contact your employer and force your employer to remove the money from your wages and send it to them. Your paychecks will be significantly smaller so long as the garnishment is active. They will continue to garnish your wages until the tax bill is paid in full. Often times the amount of this garnishment will be more than you can afford so a wage garnishment can put an enormous financial burden on you not to mention the embarrassment of having your employer know that you are having trouble with the IRS.

    Offer in Compromise

    An Offer in Compromise is a process that allows a person to settle their debt with the IRS for less than the total amount owed. The IRS takes several things into consideration when determining whether or not to approve an Offer in Compromise including income, living expenses and future earning potential. An Offer in Compromise could allow a person to settle their tax debt for pennies on the dollar.

    The IRS will establish what assets they can liquidate (if applicable) prior to accepting an offer in compromise. If the IRS has liquidated any assets then the amount liquidated will be deducted from the total tax liability. Keep in mind that if you do qualify for the offer in compromise and choose to take this route then the statute of limitations doesn’t apply. Offers in compromise may be paid in one lump sum or in installments. Payments are non refundable. If you are currently in an open bankruptcy then you do not qualify for an offer in compromise.

    By filing an offer in compromise the tax payer is agreeing to pay the actual offer and file on time for the next five years as well as pay on time if taxes are owed. The tax payer will also relinquish any tax refunds due including credits due on prior tax returns including any tax refund that a tax payer could have collected at the time the offer in compromise was approved.

    Federal Lien

    Authorized under the IRS Code. The process whereby the taxpayer or interested third party applies to have the federal tax lien removed from a specific piece of property or other asset. The discharge of federal lien may be granted if:

    1. IRS has no interest in the property,

    2. IRS will receive the net proceeds from the sale of the asset, or

    3. The taxpayer has equity in other assets equal to 3 times the amount of the tax liability.

    Delinquent Tax Return

    Delinquent Tax Return is an unfiled tax return that is outstanding for one year or multiple years.  In the event that a taxpayer should have a delinquent tax return the IRS will then present and file an alternate return for the tax payer.  It is not in the best interest of the taxpayer if this is the case because the IRS will implement the highest tax rate applicable when filing the tax payers’ returns.  The IRS will also assess penalties as well as interest because they were the ones filing and not the tax payer.

    A delinquent tax return and failure to file a tax return is indeed illegal and considered a felony.  The IRS may also file criminal charges against any tax payer for failing to file tax returns as obligatory. If a tax payer should have a delinquent tax return filing immediately is imperative.  Regardless, of whether a tax payer can pay any taxes owed the taxes should be filed on time.  At any point a delinquent tax return is filed it is inevitable that penalties and interest will accrue; filing the tax return on time will significantly reduce those penalties. Penalties can be as high as twenty-five percent of total taxes owed.

    Regardless of whether the IRS has contacted you about your delinquent tax return doesn’t mean the IRS is not aware of it.  Ultimately the IRS will contact you.  The consequences of a delinquent tax return aren’t desirable.

    911 Tax Relief Can Help!

    911 Tax Relief has been in the industry of tax representation for over 12 years now. They have already helped thousands of US taxpayers in their tax problems. They know exactly how the IRS works and how to successfully deal with them.

    911 Tax Relief has the experience, expertise and ability to solve your tax problems and provide tax debt relief. For immediate assistance call 911 Tax Relief toll free 855.227.8387 Mon-Fri 6am-6pm to speak to one of our professional tax experts and get a FREE tax evaluation so we can better serve your tax relief needs.


Leave a comment