Tax Debt Archives - Page 2 of 4

What If You Don’t File Taxes for One to 20 Years?

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.... CONTINUE READING

NY State Tax Warrant: What to Expect and How to Resolve

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

Overcoming NY State Back Taxes: Relief and Consequences

24 August, 2024 | Offer in Compromise Tax Debt Tax Issues Tax Relief

Summary New York State taxpayers who are unable to satisfy their tax payment or filing obligations may face consequences such as tax warrants, wage garnishment, asset seizure, and penalties. Relief options include requesting penalty abatement, setting up monthly payment plans, exploring the Offer-in-Compromise program, filing for Innocent Spouse Relief, and utilizing the Voluntary Disclosure Program. Appeals against tax assessments are also possible. Unpaid taxes resu... CONTINUE READING

What Happens If You Owe the IRS More Than $10,000?

16 August, 2024 | Tax Debt

Summary People who owe the IRS $10,000 or more in unpaid taxes have several options to resolve their tax debt. The IRS offers several programs, such as installment agreements, penalty abatement, and offer-in-compromise, to help taxpayers pay off their balances. If you owe over $50,000 in taxes, you may face additional penalties and enforcement actions, including a higher chance of a wage garnishment, bank levies, asset seizures, and passport revocation. It's important to seek pr... CONTINUE READING

IRS Notice of Deficiency and Form 5564

5 May, 2024 | Tax Debt Tax Notices

Summary An IRS Notice of Deficiency (Notice 3219A) is an official letter stating that you owe additional tax, which may include penalties and interest. It outlines the proposed adjustments and gives you 90 days to respond. Typically, you’ll receive IRS notice CP2000 first about a possible discrepancy. Form 5564, a waiver, comes with Notice 3219A. You can sign and return it if you agree with the IRS proposal. If you disagree, Yo... CONTINUE READING

Understanding Reduced Tax Refunds: How the Treasury Offset Program Works

7 April, 2024 | Tax Debt

Tax season is often met with anticipation as individuals eagerly await their tax refunds. However, some taxpayers may find that their refunds are less than expected or even reduced to zero. This occurrence may be attributed to the Treasury Offset Program (TOP), a mechanism through which the Department of Treasury's Bureau of the Fiscal Service (BFS) can intercept refunds to offset certain debts owed by taxpayers. Let's delve into the details of how this program operates and what taxpayers can... CONTINUE READING

When Does the IRS Come for Back Taxes?

9 March, 2024 | Late Filed Returns Tax Debt Uncategorized

How Long Until the IRS Comes After You for Back Taxes? Navigating federal back taxes can be daunting, to say the least. If you’ve got unpaid or unfiled taxes to deal with, it’s natural to feel some stress about the possible repercussions. The first step forward is understanding how long it takes for the IRS to initiate collection actions for back taxes. From there you can get a look at the bigger picture of your own situation. As of early 2024, the IRS has recently begun... CONTINUE READING

Letter 725-B Means the IRS Wants to Meet With You

7 November, 2023 | Tax Debt

Letter 725-B: The IRS Wants to Meet With You When it comes to taxes, one of the few things that is worse than getting an unexpected letter is getting an unexpected visit from the IRS at your home or place of business. If you're not prepared, a surprise visit from someone you like can be unsettling. Now, imagine a visit from an IRS employee who wants to review your financial records and c... CONTINUE READING

What to Do After Receiving an IRS CP523 Notice

7 November, 2023 | Payment Plans Tax Debt

Summary The IRS sends a CP523 notice to taxpayers who have defaulted on their installment agreements, which are monthly payment plans set up to pay off tax debt. This can happen for a variety of reasons, including missed payments, failure to file tax returns, unpaid taxes, or not responding to IRS requests for financial information. If you receive a CP523 notice, you have 30 days to respond and rectify the situation to avoid further action. It is crucial to read the notice carefully... CONTINUE READING

What Happens If You Owe the IRS Over $100,000?

25 July, 2023 | Tax Debt

What to Expect If You Owe the IRS Over $100,000 Owing money to the IRS can be extremely stressful, but the situation is even more stressful when you owe into the six figures. When you owe this level of tax debt, you may be worried that the IRS is going to come after you, and there's a pretty significant possibility of that happening. Even if the IRS doesn't contact you right away, the agency will eventually do everything possible to collect that money. The IRS can take very... CONTINUE READING

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