Anyone who is facing a large unpaid tax debt may feel overwhelmed by the prospect of having to repay the entire balance in order to avoid a tax lien or an IRS tax levy. Some taxpayers may even consider filing for bankruptcy protection to get immediate relief from their debt. If you're thinking about filing for bankruptcy to get relief from your tax bill, there are a few things you should consider in advance.
Have you had your wages garnished by the IRS? If so, you may have several questions about IRS wage garnishment such as how long the process will last and what you can do to resolve it. The prospect of the IRS garnishing your wages can be extremely unsettling, but if you're facing this situation, you can ease some of your concerns by learning what's involved.
Are you currently facing an IRS tax levy? If so, you might be concerned about what the levy will do to your credit, your assets, and your finances. While an IRS tax levy can be frightening, there are ways that taxpayers can try to seek some relief from this action. The key to resolving a tax levy is getting as much information as you can about what to expect during the procedure. Here are a few common questions about IRS tax and bank levies.
If you're in need of tax assistance, you may find that there are several different kinds of
tax professionals for hire. The type of tax expert you need, though, depends greatly on the specific tax situation you're dealing with and how much assistance you require. There are some tax professionals who are ideal in small, uncomplicated situations and there are tax experts who are highly qualified and trained to deal with complex financial concerns. Knowing when to use specific tax experts will help you to choose the best professional for your situation.
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If you have a tax debt with the IRS that is at least ten years old, you might think that the agency doesn't have the ability to pursue you for collection. While most taxpayers receive a reprieve on their tax debt after ten years, in some cases the IRS still has the ability to collect on an old debt. It's important for taxpayers to find out if their accounts are exempt from the ten-year rule so that they can prepare themselves if the IRS decides to pursue collection.
All businesses have to cover the cost of operating expenses in the course of operation. Many of these expenses are essential to running a company such as repairs, supplies, and office equipment. Other beneficial expenses such as advertising and payroll are also important. The Internal Revenue Service allows business owners to deduct many of these expenses on their personal or business tax returns. However, before they try to claim these deductions, taxpayers should find out what is involved in deducting business expenses.
If you're used to filing your taxes in April of each year you may not be thinking about the possible tax law changes you'll face in 2013. But, even though the end of the year is a few months away, it's a good time to find out what you can expect in the new tax regulations. Several tax provisions that have been in effect for the last few years are set to end in the new year, so preparing yourself in advance can help you think about some tax filing changes you might to make.
If tax time is a depressing time of year for you, you may be tempted to put off your tax preparation until the last minute. However, if you begin getting ready for the new tax year now, you'll find that your preparation will be much easier closer to the deadline. Early tax preparation is even more important if you're expecting to pay a large amount of taxes, since you may be able to take steps now that can reduce your tax liability next April.
Taxpayers who are in debt to the IRS may not be aware that the agency is restricted to a certain amount of time to collect on the debt. This means that some individuals who are close to the end of the statute of limitations may only have a short amount of time left to make payments on their accounts. After the statute of limitations runs out, even the IRS cannot legally pursue back tax payments from individual taxpayers.
When the IRS enforces a bank levy, the agency will have the authority to seize funds from your bank account to pay off your tax balance. Typically, this happens through regular withdrawals but, if your bank account contains enough assets to pay your balance in full, the
agency may decide to seize enough to pay off your account through a single withdrawal.
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