Archive for August, 2011

Tax Lien Tips

Tax lien is often placed on taxpayer’s property for the amount of debt as a security when the tax payer ignores the notice of payment due and doesn’t make payments on back taxes. Tax lien can be placed on debtor’s house, cars, and accounts receivable.  Tax lien becomes a public document that may affect the taxpayer’s credit score.
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2011-08-22 11:00

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What is a Federal Tax Levy?

Most Tax Payers wait to receive a threat of Federal Tax Levy, before consulting Tax Professionals.  Federal Tax Levies are often utilized by the IRS to collect back taxes that are owed or believed to be owed by the taxpayers. The two most common forms of tax levy are IRS Bank Levy and IRS Wage Levy (a wage garnishment sent to payroll departments). The IRS can not only seize and sell property, but also take money from the bank account and take funds straight from the a paycheck to settle the debt. Federal tax levy is often initiated when taxpayers owe back taxes, failed to pay or file taxes, and refuse to make arrangements to satisfy the outstanding tax debt.
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2011-08-19 11:00

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What is an Offer in Compromise?

Individuals who owe back taxes to the IRS and do not have the money to pay the total amount due may qualify for an Offer in Compromise. An Offer in Compromise is an agreement between the IRS and a taxpayer to settle back taxes for less than the full amount that is owed. An offer is generally accepted by the IRS when the taxpayer in debt has special circumstances and the amount offered is the reasonable collection potential. In other words, the IRS agrees that based on taxpayer’s circumstances, the amount offered is the most the taxpayer can be expected to have the ability to pay within a reasonable period of time.
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2011-08-17 11:00

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Why and When to Use a Tax Professional

Most people do not require assistance from a tax professional, but those that owe back taxes should not procrastinate. It is important to choose the right professional – an attorney, CPA or Enrolled Agent – for the problem at hand.  If it is important to keep information confidential, it is best to consult a tax attorney. In most cases, when working with a tax attorney, information shared is protected by the attorney-client privilege.

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2011-08-15 11:00

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Who to Ask for Help when Dealing with Tax Problems

Today, in a tough economy many Americans are facing problems with back taxes and other tax issues. Facing the IRS (or state tax agencies) alone can be a long and frustrating process. Laws are constantly changing, there are mountains of endless paperwork, and taxpayers often find themselves running in circles. Having a tax professional by your side can ease your stress, and result in a faster and more favorable resolution of the problem.

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2011-08-11 11:00

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