Tax Matters - The Top Tax Defenders Blog

As medical costs climb, it’s nice to think you could deduct them from your taxes. And you can, but there are limits. 

A tax crime is something more severe than neglecting (or forgetting) to file your tax returns. You aren't committing a tax crime if you can't pay your taxes in full. Those are issues that can cause your tax debt to collect penalties, fees, and interest. Still, they don't rise to the level of criminal activity.

The IRS says if there is a federal tax lien on your home, you are required to satisfy it before you can sell or refinance.  The presence of other types of liens can make a home sale challenging, too. While it is possible to sell your home when you have a lien against the property, you are much better off paying your tax debt or other lien debt. 

ADP, a payroll services provider, reported that in 2017 one in fourteen American workers had wages garnished. 

The scariest thing people consider when they owe back taxes is that the IRS will take their house. While it isn’t untrue, it’s still relatively rare for the federal government to seize property, particularly real estate. 

Have you ever tried to get money out of your bank account only to find your account was frozen? You may have been under a bank levy. Bank levies are a tool for collecting on a debt. It sounds counterintuitive that a frozen account would help you pay the debt, but the account is only inaccessible to you.

Tax resolution — it sounds like something you make before a new year only for taxes, doesn’t it? Actually, tax resolution services are what you need if you have to resolve an issue with the IRS.

So you can’t pay your taxes. Don't start worrying about getting in trouble with the IRS yet. Did you know the IRS will let you set up a payment plan? That’s right, the IRS has lay-away! Well, not quite. You don’t get anything back when you pay your bill off except for the knowledge you are in good standing with the feds. 

Nothing sets the nerves on edge quite like the need to file back tax returns. Deserved or not, the IRS has a reputation for making life difficult. (We will admit they are trying to be nicer.)

There are times when you can do your taxes yourself, and there are times when it’s prudent to hire someone to help you.  It comes down to how complicated your taxes are and your comfort level in dealing with them.