Tax Matters - The Top Tax Defenders Blog

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.

 

As you approach retirement age you may be thinking about how you can best prepare for this next stage of your life. One area you may not be concerned about, though, is how your changing life may affect your income tax liability. People over 50 may be able to claim some unique tax deductions, particularly for medical costs, insurance and retirement distributions. Here are a few tax tips if you’re over 50:

Do you have unfiled IRS income tax returns from previous years? If so, you can clear them up by filing the returns in question at any time. Here are a few guidelines to help you clear up your unfiled IRS income taxes.

Taxpayers who have a tax levy imposed on their accounts often have to deal with tax troubles for years to come. The levy can dramatically affect their well-being, siphoning off needed income and valuable assets. If you receive a notice of an intent to levy it’s important to find out what is involved.

The IRS offers innocent souse relief in very limited tax situations. This arrangement allows spouses who were not involved in the tax fraud or errors perpetrated by their husbands or wives to be absolved of tax liability. However, qualifying for IRS innocent spouse relief can be a complicated process.

Did you know that the IRS has the authority to seize your assets if you owe back taxes? The Internal Revenue Service is one of the most powerful government agencies when it comes to seizing control of individual assets so it's wise for any taxpayer to understand the agency's authority and how it exercises asset seizure in cases of income tax debt.

Most people are familiar with IRS payment plans, which are extended payment periods available for those who are unable to pay their balances in full. However, in rare cases, the IRS also offers tax settlements - payment options that allow taxpayers to settle their accounts for less than owe. Qualifying for these IRS tax settlements is rather difficult, though, since the agency has very strict standards for granting these types of requests. Learning about IRS tax settlements and how they work can help you decide if you may qualify for these options.

If you're a married taxpayer, you can decide to file your income tax returns with or without your spouse. While the IRS offers both filing statuses it's always important for each individual to decide which option is best for their situation. Once you've learned about the basics of each status, you'll find it simpler to choose the filing status that gives you the biggest tax break. In a few cases, however, it may be best for an individual to file separately from his or her spouse even though doing so might result in a larger tax bill.

The IRS offers payment plans for taxpayers who are unable to pay their entire tax debt in a lump sum. The program is rather easy to initiate, which makes it a great option for those who are unprepared to pay a large tax bill at the deadline. Most individuals will use IRS Form 9465 to apply for an installment agreement. They can complete and submit this form along with their income tax returns.