Archive for September, 2011
The IRS will begin sending automatic notifications when they determine that you owe money to the government. A taxpayer typically has about four to six months to pay the debt or obtain tax debt relief before the IRS takes collection action (the actual time will depend on the amount and type of tax owed). If you need more time to pay, it is vital to file an extension request. If you are not responsive, the IRS will take action to collect.
Three percent of taxpayers in the United States do not file tax returns and as a result, face a tax evasion penalty. It is also possible to face a tax evasion penalty if you underreport your income, overestimate deductions, or use various fraudulent accounts for tax evasion. This can result in serious consequences including steep fines and imprisonment. (more…)
If you were unaware of your spouse’s mistake on the jointly filed taxes you are eligible for a tax relief called Innocent Spouse Tax Relief. This allows the “innocent spouse” to avoid paying for tax and tax penalties that were acquired due to mistakes made by the guilty party. However in order to qualify for this tax relief you have to comply with rules and regulations of the IRS.
The IRS formed the 2011 Offshore Voluntary Disclosure Initiative (OVDI) to encourage taxpayers to disclose their hidden foreign accounts and entities, in order to get into compliance with US tax laws. With an original deadline of August 31, 2011, the IRS decided to extend the due date for OVDI requests to September 9, 2011, due to the potential impact of Hurricane Irene on many states. (more…)
Getting audited by the IRS can happen to anyone – whether or not they owe back taxes. Taxpayers can be audited through the mail or in person, when IRS agents visit them or they are required to go to the nearest IRS office. In person, audits are more detailed and take more time. (more…)