Overdue Tax Returns
When you don't submit your taxes on time to the IRS and are required to pay money to the IRS, your tax return is considered delinquent. There are many reasons individuals fail to file their taxes punctually, including job loss and divorce. Whatever your reason, you need to know that it is never too late to file a delinquent tax return, and it's also never late to work out an arrangement with the IRS for repayment.
Penalties for not paying your taxes can be rigid and can include jail time and/or additional fines. Fines can reach up to $10,000 for each year that your return is considered overdue. Other penalties could include wage garnishment and tax liens and levies. If you owe a large amount of money, you should seek advice from a tax expert and/or a tax lawyer. Talon Tax is an example of a tax relief firm that can provide these services to individuals and businesses. We can help you explore your alternatives and bargain with the IRS on your behalf.
Safeguarding Your Rights and Your Assets
If you owe the IRS back taxes, you are not alone. Many people find themselves in the same situation. The best and only means to avoid further troubles is to know the law and your rights. You may need to make full or partial payments, or file for non-collectible status. Either way, do not allow wage garnishments, frozen assets, tax levies, tax liens, and fines to become a part of your life-- take the first step today to resolve your tax debt and safeguard your economic future.
Know Your Options
There are numerous IRS back tax relief methods available. If you are incapable of making any sort of repayment towards your tax financial obligation with the IRS, you may qualify for just what the IRS calls "existing non-collectible status." On the other hand, if you can manage to make some sort of payment, your best bet is to negotiate the IRS and work out a settlement arrangement. In the most severe cases, tax amnesty is another option. Tax amnesty is the best choice if you are facing possible criminal charges, but you are able to submit your income tax return before the IRS officially submits the charges. Regardless of your situation, contacting the IRS as soon as possible should always your first step.
Learning More About Tax Relief and Repayment Options
When you establish a repayment plan with the IRS, the monthly payment amount will likely be based on your income, the overall quantity that you owe, and several other factors. If you fall behind on repayment, you might deal with wage garnishment, the freezing of assets, including your checking account, and other fines. This is why it is so important to communicate clearly with the IRS regarding your present financial situation and why it could be necessary to seek out the advice of a tax attorney.
What is Tax Debt Relief
Tax relief does not mean you won't have to pay your taxes. Tax relief programs, are strategies that might help you decrease the total amount of tax you are obligated to repay to the federal government. These tax relief programs are 100% lawful, and they can be extremely helpful in lowering the amount of taxes you need to pay right away to the government.
1 Tax Installment and Current Non-collectible Status
Taxpayers sometimes in tough economic conditions that hinder their capability to meet their tax commitments to the federal government can apply for current non-collectible status. Skilled tax consultants, such as those at Talon Tax, can guide you through the qualification process. When under the category of “current non-collectible status," the IRS is recognizing that your financial health condition is so bad you cannot afford to make the smallest repayment. This is only a temporary fix though. Ultimately, when your current non-collectible status ends, you will need to make repayment arrangements.
2 Income Averaging Relief
Income averaging relief is a program for individuals facing tax debt that makes the repayment plan based on your income. With income averaging, the IRS uses your previous income in past years, as opposed to your present income level, to determine your current tax liability. This may be useful if your income degrees often fluctuate extremely from year to year.
3 Upright Spouse Relief
The IRS wants to collect back taxes from you because, for the tax year in inquiry, you did not mention all the income your partner made that year. Upright spouse relief is common for separated couples. To qualify, you must prove that you had no knowledge of the underreporting of your joint earnings-- a tax specialist could help you determine if you might qualify. In some cases, you may not have to repay any of the overdue taxes if you found not responsible under this rule.
4 Tax Amnesty
"Tax amnesty" is usually confused with complete forgiveness of tax obligations. The tax amnesty program, which is also referred to as "Voluntary Disclosure Policy," is a program that was created to end the prosecutions of taxpayers, if they submit their returns and back taxes before the IRS actually files a criminal report. If you think that the IRS may prosecute you for some tax-related issue, try to fix the problem as soon as possible so the IRS will not attempt to prosecute you.