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If you owe the IRS back unpaid taxes, chances are that you are feeling scared and powerless. But the good news is that even if you are partially in the wrong, you still have rights thanks to The IRS Restructuring and Reform Bill of 1998 and the more recently adopted Taxpayer Bill of Rights.

Under these policies, the IRS has to fully communicate with taxpayers and afford them “due process” rights before pulling one of the many levers it has to make a taxpayer’s life miserable. Understanding your rights can make all of the difference when dealing with the IRS and back taxes.

Your right to be informed. The IRS has a duty to explain exactly what you need to do in order to comply with the tax laws. You also have a right to have all decisions made about your tax account explained to you in terms that you understand. However, you can’t just ignore the IRS’s attempts to inform you.

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One of the most common reasons why individuals fail to file Form 1040, the U.S. Individual Income Tax Return, that should be filed annually, is because they know they will owe the Internal Revenue Service, but are unable to pay the liability.

Filing returns that are past due are not any different than filing for the current tax year. If you choose to not file your past due returns or do not contact the IRS, the IRS will start to take action. Deliberate non-compliance can lead to additional tax penalties and potentially criminal prosecution.

Taxpayers should file every year, even if a full payment cannot be made. Taxpayers who are not able to pay the tax liability due on the bill are encouraged to pay as much as possible. This will help limit the amount of interest and penalties owed. Taxpayers should file all unfiled returns that are past due to avoid additional penalties and interest. The IRS can impose penalties for filing returns late, paying tax liabilities late, or both. The IRS will charge interest on any unpaid tax.

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When the Internal Revenue Service or IRS issues its intention to audit your financial capabilities, it can be a very difficult situation. A tax audit is any form of communication, whether through letters or telephone calls, which tells you that the IRS intends to investigate all the items in your income tax forms.

In most cases, an IRS audit strikes fear in taxpayers because of the uncertainty and stress it will cause. Thankfully you can apply for sufficient protection with an IRS audit defense.

Your Quick Response to an IRS Audit

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Denial, avoidance and procrastination are all activities in which an individual may engage when faced with something that he or she would rather not deal with or do. However, such coping tactics are almost always sure to backfire and make an unpleasant or difficult situation even worse. This is especially true in cases where an individual receives communication from the Internal Revenue Service.

Anyone who opens their mailbox and sees a letter from the IRS is likely to panic. Whether an individual chooses to throw the sealed envelope away or simply disregard its message, ignoring the IRS can end up costing an individual hundreds to thousands of dollars in fines and, in some cases, a whole lot more.

Annually, the IRS claims to send “millions of notices and letters to taxpayers for a variety of reasons,” some of which may be minor or even positive in nature. Even in cases where an individual knows that he or she failed to file or pay taxes or expects bad news, it’s important toopen an IRS letter or notice as soon as possible and to contact the agency with any questions. This is especially true in cases where an individual believes that the IRS erred and an individual plans to dispute the issue in question.

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A tax audit by the Internal Revenue Service is an examination of an organization or individual’s finances, and is done to ensure that information is being reported in accordance of tax laws and they are taxed correctly.

If you or your organization has been selected for an audit by the IRS, this does not always mean that there is an error or taxes owed. Returns are selected based on three methods:

  • Random Selection: Returns can be selected randomly on a computer and are based on a mathematical formula.

We specialize in tax negotiation and working with taxpayers to resolve there IRS back tax problems. With the proper tax relief methods applied and using IRS doctrine, we provide our clients with a compromise between what the IRS wants and what the taxpayer can comfortably deliver,  promoting compromise and compliance is the hallmark of what we do here at 101 Tax Strategies . In addition to executing offer in compromises, we resolve IRS back taxes, audits, late filings, unfiled returns, wage garnishments, bank levies, tax liens  and much more so that taxpayers nationwide can receive professional tax help and take advantage of immediate tax relief.

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Whether your looking for tax help,  tax relief or back taxes help, citizens across the country require IRS back tax relief  on numerous dilemmas, whether it stems from business back taxes to unpaid stock transactions to levied wage garnishments,  we have the know how to provide tax relief for our clients with the proper tools to satisfy most IRS demands.

The mere mention of IRS back tax liabilities spark stress and tension. The IRS has developed a reputation of foiling all would be back tax evaders. The trick is not to try to outsmart the IRS, but work within there guidelines to deliver a tax relief agreement between what the IRS wants and what the taxpayer can deliver. This is the area in which we specialize, promoting compliance, tax relief and compromise is the hallmark of what we do.

IRS has the responsibility to ensure that citizens pay their yearly taxes on time failing which the bureau has the authority to penalize and even imprison the defaulters. IRS tax debt relief is the process of debt reduction by enabling those who are under heavy tax debts. This does not mean that the tax defaulter is wiped clean of all his liabilities. It is just a means of helping the defaulter to pay all his debts in a convenient manner. a9-300x300IRS is forced to work out a solution with each tax payer to recover the pending amount from him based on the payer’s financial condition. In order to facilitate effective tax collection, IRS offers various tax relief programs to defaulted taxpayers. IRS offers these various tax relief programs to help defaulters in different ways and resolve their tax liabilities without having to resort to hard measures. Some of the common IRS tax relief programs are Offer in Compromise, Installment Agreement, and Currently not Collectible status.

IRS also offers income tax relief to payers affected by disasters. The law permits IRS to provide extended time to disaster affected tax payers to perform activities like filing returns and paying taxes when the original and extended due date falls within the disaster period.

There are many qualified and experienced attorneys who can liaison between the IRS and the tax payer to make the process of IRS tax debt relief easy. If you owe taxes or have any kind of tax problems, it is always advisable to go to an expert who can guide you through the system and negotiate with the IRS for the best deal.

A IRS tax lien is a kind of security interest granted over a property to secure payment of the debt. A tax lien on a property is imposed to secure payment of tax debt. A tax lien may be imposed against delinquent taxes against property or on account of failure to pay taxes. In the United States a federal tax lien may be raised in connection with any kind of federal tax.

IRS can have  a legal claim to your property as a security or payment for tax debts through a lien. IRS will file a Notice for a Federal Tax Lien only after:

  • The liability of the tax payer is assessed

Good vs. bad tax debt – What is the difference?

So, What is Good and Bad tax debt?

Do you know what to expect from your tax return? If you get a tax refund, then, you’ll have no problem figuring out how to use the money! But what if with all the current changes to the Tax Code you will end up owing the IRS and can’t pay it immediately? You may then ask the question, is there a tax attorney near me?

a5-300x300Many find themselves in a similar situation each year. They filed their taxes and had a life changing event that also impacted the taxes they pay. For instance, one client filed his taxes after buying a condo with money he had withdrawn from his 401K account. Smart or not, he did it not realizing the income tax implications and ended up with a federal tax debt of about 15,300.

There are many reasons for people ending up with a tax debt, but income tax debts are most common for the individual taxpayers.