Article of Interest
In the event that the outcome of your case is less than what you believe is fair and equitable, you have the right to appeal the IRS’s decision. The IRS has a special department devoted to appeals called The IRS Appeals Division. The objective of the IRS Appeals Division is to resolve disputes between taxpayers and the IRS.
The IRS is encouraging taxpayers who have not filed tax returns, not reported all of their income on their tax returns and/or have taken frivolous tax deductions to participate in this Limited Time Voluntary Disclosure Program.
The IRS has just ten (10) years from the date of a tax assessment to collect the tax from the taxpayer for tax year in question. This is called the Collection Statute
The IRS may now be a “kinder and friendlier” agency, but don’t be fooled into thinking that its tax agents are your friends. They’re not; they’re just doing their job: to collect the maximum amount of taxes, penalties and interest from you.
If the IRS takes a collection action or is about to take a collection action, you are entitled to have the legality and propriety of that action reviewed by an IRS Appeals Officer under one of two appeals programs.
Many people believe that a US citizen gets a free pass if you work outside the US . Whether you are working in the United States or you are overseas, you generally have to file a US tax return being that you are a US citizen. You need to file if you made over $8,950 (whether in the US or Abroad).
Before getting into the what to do filing details, realize, if you have money in a foreign institution over $10k, then you must fill out form TD F90-22.1 This is not to be sent in with a tax return as it is sent to a different address (on form).
This section should be of particular interest to taxpayers who have not filed federal tax returns for three years or more and owe more than $75,000 in tax (i.e., pure tax ― no interest, no penalties).
When the Commissioner of Internal Revenue has determined a tax deficiency, the taxpayer may dispute the deficiency in the Tax Court before paying any disputed amount.
As you know, there are many tax benefits of contributing to a 401K. With this in mind, you should also know how the withdrawal process works, when you can get your money, penalties that may arise, and how to pay back the IRS if you find that you owe more in taxes than you can handle.
The biggest benefit of a 401K is that you do not have to pay taxes on the money you are contributing. But when you are finally ready to take out this money you will find that things are not quite the same. Every withdrawal that you make from your 401K plan is taxed. On top of this, if you withdrawal your money before the age of 59.5 you are also going to incur an additional penalty. The early withdrawal penalty is 10 percent in addition to any money that you will owe in taxes. Additionally, if you leave a company after the age of 55 or become disabled you may be able to withdrawal money from your 401K without being hit with a penalty.
Generally speaking, 401K plans only allow any early withdrawal to deal with a financial hardship such as medical bills, losing your job, avoiding foreclosure, etc. It is very important to speak with your employer if you are interested in early withdrawal. Just remember, even if you are facing a financial hardship, early withdrawal is going to result in a penalty.
Yes, you actually do have them and you’d better know them before you try to deal with the IRS because it is highly likely that the IRS official you will be dealing with either, a) doesn’t know them; or b) isn’t particularly enthusiastic about your exercise of them.
There have been three Taxpayer Rights bills passed by Congress in the last twenty years.
If the IRS has placed a lien on you already, you have most likely been contacted from purported tax professionals promising that they can get the IRS to accept just a fraction of what they say you owe.
We have written extensively about the con-men and con-women who disguise themselves as tax professionals and attempt to convince taxpayers that they can get their tax debts settled for a fraction of what they owe.
You Have a Right to Tax Representation
If you have been contacted by the IRS or your state’s Department of Taxation, or have received tax liens, levies or notices of IRS intention to do so,