Tax Matters - The Top Tax Defenders Blog

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.

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.

Dealing with an outstanding IRS tax debt is a stressful situation but it can be even more difficult to handle if you're facing a financial hardship. These situations, which could be caused by any number of factors, are not unusual for taxpayers who owe and want to settle back taxes. This is why the IRS extends a special provision for those who are dealing with financial hardship - the "Hardship" status which places a temporary freeze on your repayment requirements until your economic situation improves.

Taxpayers who have an outstanding tax debt with the IRS may receive a notice about a possible bank levy. This usually happens after the debt has gone unpaid for some time or after the taxpayer has neglected to contact the IRS about repaying the debt. While dealing with an IRS bank levy is a difficult process, the good news is that you may have time to settle your account before the levy is enforced. Here are three suggestions for avoiding a bank levy.

Taxpayers who owe a substantial amount of back taxes to the IRS may face a tax lien or a levy if they leave their debts unpaid. The IRS has the legal authority to enforce these methods for collecting on outstanding debts and, once a lien or levy is placed on your bank account or other assets, getting rid of one can be quite difficult. One of the best ways to resolve a tax lien or a levy is to avoid one in the first place. Here are a few other tips for resolving tax liens and levies.

If you owe the IRS a significant amount of back taxes you may have received a notice about an upcoming IRS bank levy. Once this levy is placed on your account it can be very difficult to have it removed especially if you try to settle your account on your own. A qualified tax specialist can help you learn how to release the levy from your bank account.

The IRS assesses underpayment penalties for taxpayers who don't pay in enough income tax during the year. This penalty is typically enforced against those who are self-employed or those who don't have enough tax withheld from their pay to cover their assessed tax. If the IRS imposes an underpayment penalty on your account, you'll have to pay in the additional taxes you owe as well as the penalty. Here are six tips you can use for tax help and to learn how to prevent underpayment penalties.

If you owe back taxes to the IRS you might be worried about how you'll resolve your account with the agency. The IRS has plenty of resources to track down and penalize potential tax cheats so it's always best to find a way to pay your balance as soon as possible. The good news is that you can pay your back tax bill in an affordable way by using an IRS payment plan. Before you're able to set-up payment plan arrangements though, you'll need to learn the different types of available plans for you.

Some taxpayers think that the IRS can garnish wages without warning but the agency actually has several procedural rules that it follows when agents begin the wage garnishment process. By learning about the IRS rules for wage garnishment taxpayers who have outstanding back tax balances can prepare themselves to stop the wage garnishment process and avail themselves of the options they have.

If you owe a significant amount of back taxes, you may be at risk of having your wages garnished by the IRS. Generally, wage garnishment is one of the last steps the agency takes to collect an outstanding balance due. Most taxpayers who have their wages garnished have also been subjected to an IRS levy on their other assets such as their property, automobiles or bank accounts. Whatever steps you take to remove a wage garnishment, you'll want to begin immediately since the IRS will have access to every paycheck you earn as long as the garnishment is in effect. If you're wondering what you can do to stop wage garnishments, here are a few steps that will help you rectify your tax issues.