A tax assessment is the official step the IRS must step to legally declare that you owe tax. Once this step is completed (and after you’ve had the chance to dispute the assessment), the IRS can move your case to collections. Typically, tax is assessed when a return is...
IRS Tax Debt
3 WAYS TO GET MORE TIME TO PAY YOUR TAX DEBT
Paying your IRS tax debt in a lump sum is often difficult. This is especially true if you owe $25,000, $50,000, or $100,000 in back taxes, penalties, and interest. If you need more time to pay your tax debt, consider any of the following three strategies. IRS...
TAX PROBLEMS RELATED TO UNEMPLOYMENT
Unemployment may be a cause of IRS tax debt problems. It may also exacerbate existing tax problems because you’ll have less money available to make regular payments towards your tax debt. Past-Due Tax Bills If you already have accumulated tax debt, you may be unable...
3 THINGS YOU NEED TO KNOW WHEN YOU RECEIVE A NOTICE OF DEFICIENCY
A Notice of Deficiency is an official tax assessment letter from the IRS. The notice is informing you of your rights and what you have to do to contest the tax assessment. You Have 90 Days The Notice of Deficiency is also referred to as a 90-day letter. You...
CAN YOU GET RID OF TAX DEBT IN BANKRUPTCY?
It is possible to have some tax debts discharged in bankruptcy. However, not all tax debts can be discharged, so you should discuss these issues with a bankruptcy attorney and a tax attorney prior to filing bankruptcy. Bankruptcy and Tax Debt The automatic stay in...
PAYROLL TAX RELIEF OPTIONS
Many businesses get into IRS tax debt because of payroll taxes. Using this money for other debts or to keep your business running can lead to tax penalties, interest, or eventually IRS collection actions. Get Into Tax Compliance If you have payroll tax debt, your...
Inheritances and IRS Tax Problems
Any inheritance you result is generally only subject to estate taxes and not income taxes. Since estate taxes only impact a small portion of estates, you may think that are inheritances are automatically tax-free, but this isn’t always the case. There are a few...
What to Do If Your Spouse Has Tax Debt
You generally aren’t responsible for tax debt incurred by your spouse before you were married. However, you could still run the risk that the IRS will seize your tax refund if you file jointly. To avoid this situation, you have a few options. File Separately If you...
What Happens If You Ignore a Letter from the IRS?
There are many types of IRS notices and each one has its own repercussions if you fail to respond. The following are a few potential consequences of ignoring a letter from the IRS. Your Passport is Denied The IRS has the power to provide information to the State...
What Happens If You Get Currently Not Collectible Status?
Currently not collectible (CNC) status gives you a breather from imminent IRS collection actions. The IRS generally won’t levy your assets or wages while your account remains in CNC status. There are costs and benefits to CNC status that you should consider before...