9 February, 2025 | Tax Debt Tax Notices
What is the Difference Between an IRS Revenue Officer and an IRS Revenue Agent? When an IRS representative contacts you directly to discuss your taxes—whether it’s a specific return, the results of an audit, or a past-due tax debt—it’s important to know the scope of their work and what they are legally allowed to do in regards to your tax debt. While some peopl... CONTINUE READING
15 January, 2025 | Tax Debt Tax Laws
Summary When someone dies, their estate is responsible for paying any outstanding tax debt. The executor of the estate must file a final tax return and pay any taxes owed before distributing assets to heirs. Heirs do not inherit tax debt, but they may be responsible for taxes on inherited income or property. Surviving spouses may be responsible for their deceased spouse's tax debt if they fil... CONTINUE READING
5 January, 2025 | Tax Debt Tax Help
Summary The IRS Fresh Start Program was initiated in 2011 to help taxpayers struggling with tax debt. It is not a specific program, but a set of changes to existing laws and programs, including increased tax lien thresholds, easier installment agreements, and expanded Offer in Compromise options. The program's goal is to help taxpayers get back on track and avoid aggressive collection tactics. While legitimate, the term "Fresh Start Program" has been misused by some tax relief firm... CONTINUE READING
18 October, 2024 | Tax Debt
Summary Yes, the IRS can take your 401(k) for taxes owed if you fail to pay your taxes in full and on time. The IRS has broad authority to levy assets, including retirement accounts, to collect unpaid taxes. However, the IRS generally only takes this action as a last resort after other collection efforts have failed. To protect your 401(k) from an IRS levy, it's crucial to be proactive about your tax debt. Respond to IRS notices promptly and work with the IRS to establish a... CONTINUE READING
17 October, 2024 | Tax Debt
Summary The IRS can garnish wages to collect past-due taxes if taxpayers fail to pay or make payment arrangements. The amount of garnishment depends on factors such as wages, pay cycle, tax filing status, and dependents. The IRS follows specific rules, allowing them to garnish a substantial portion of a paycheck. Wage garnishment is a common IRS levy to ensure consistent progress in tax debt repayment. To prevent wage garnishment, taxpayers can explore payment options like installme... CONTINUE READING
13 October, 2024 | Tax Compliance Tax Debt Tax Fraud Tax Penalties
Summary Individuals who intentionally evade taxes can face criminal charges and potentially go to jail. Tax fraud and tax evasion are felonies, with penalties including fines and imprisonment. Nearly two-thirds of people convicted of tax fraud receive prison sentences, averaging 16 months. The IRS Voluntary Disclosure Program allows taxpayers to file back taxes and avoid prosecution if they voluntarily disclose their failure to file and make an honest attempt to pay. Tax authorities... CONTINUE READING
9 September, 2024 | Tax Debt Tax Penalties
Summary The IRS has the authority to freeze funds in a taxpayer's bank account up to the amount of their tax debt. The IRS typically sends multiple notices before levying an account, giving the taxpayer time to address the issue. There are various reasons for the IRS to freeze an account, such as significant tax debt, non-compliance, or fraudulent activity. If an account is frozen, the taxpayer has 21 days to respond before the funds are sent to the IRS. Options to release a freeze... CONTINUE READING
8 September, 2024 | Tax Debt Tax Help
Summary IRS Form 433-F (Collection Information Statement) is used to gather detailed financial information about taxpayers applying for specific tax relief programs. The form helps the IRS determine eligibility for alternative payment plans, including partial payment installment agreements and payment plans for high-balance tax bills. Taxpayers may need to file Form 433-F if their tax debt exceeds $50,000 and they want to make an installment agree... CONTINUE READING
8 September, 2024 | Tax Debt Unfiled Tax returns
Summary The consequences of not filing taxes vary depending on the amount owed and the time elapsed since the last filing. Failure to file on time incurs penalties and interest, which increase over time. After three years, unclaimed refunds are forfeited, and the IRS can take collection actions, including liens and levies once there is an unpaid tax bill and a certain amount of time has passed. Filing back taxes involves gathering financial d... CONTINUE READING
24 August, 2024 | Tax Debt Tax Help
Summary A tax warrant in New York is a legal claim by the state on personal and real property due to unpaid income, sales, or other New York State taxes. The Department of Taxation and Finance (NYS DTF) issues tax warrants, and they create a lien against assets, allowing the state to seize wages, income, and assets. Consequences include asset seizure, wage garnishment, and publication of tax debt. Tax warrants follow individuals regardless of where they... CONTINUE READING
What is the Difference Between an IRS Revenue Officer and an IRS Revenue Agent? When an IRS representative contacts you directly to discuss your taxes—whether it’s a specific return, the results of an...
