Category: Blog

Received a Federal Tax Lien? Here is the Way Ahead

Federal Tax Lien

A federal tax lien is one of the last things you would want to receive as a taxpayer. Under a tax lien, the IRS claims the rights to the defaulter’s assets, such as real estate, bank accounts, and vehicles. The lien may even limit the taxpayer’s ability to get credit in the future. Taxpayers, who file for bankruptcy, may still have to continue paying the lien. If you too have received an IRS tax lien, here are a few things that you need to know to find your way out. The Options at Hand 1. Pay Your Debt in Full

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Understanding Wage Garnishment Laws in Texas

Understanding Wage Garnishment Laws in Texas

The IRS has strict wage garnishment laws to enforce debt collection on unpaid taxes, no matter whether we talk about Texas or any other state. If a taxpayer voluntarily or involuntarily evades or defaults paying their taxes, the IRS can impose a wage garnishment to ensure the defaulter clears their dues. In cases of wage garnishment, the IRS contacts the employers of the defaulting taxpayer directly and asks them to deduct a specific amount from their salary and sends it to the IRS. The worse part is, unlike other creditors, the IRS directly levies a wage garnishment without taking the

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How to Pay Payroll Taxes to the IRS

how to pay payroll taxes to the IRS

By definition, payroll taxes are taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff. Payroll taxes generally fall into two categories: deductions from an employee’s wages and taxes paid by the employer based on the employee’s wages. The combination of the employee’s withheld taxes is called “trust taxes.” Since it is withheld from the employee’s wages, the money belongs to the employee. It is the employer’s legal responsibility to accurately withhold, account for, and pay the amounts to the IRS on the employee’s behalf. When to Make Payroll

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The Law, Costs, and Benefits of Payroll Taxes for Employers

Payroll taxes for employers - Law, Costs, and Benefits

Payroll taxes are federal and state taxes that every employer is required by law to withhold and/or pay on behalf of their employees. Employers are required to withhold state and federal income taxes as well as social security and Medicare taxes from every employee’s’ wages. In addition, employers are required to pay a matching amount of social security and Medicare Taxes for employees as well as paying federal and state unemployment taxes. Percentage Costs for Social Security and Medicare Federal income tax is withheld by the employer and calculated using the employee’s Form W-4 and withholding tables provided by the

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A Brief Guide to Primary Home Exclusion for Capital Gains

Primary Home Exclusion for Capital Gains

Your home is one of your biggest investments, and it’s natural for you to expect a sizeable return if you decide to sell the property. You’ll, however, be expected to file returns on the capital gains that accrue, which can be an anticlimax of sorts. If you’re ready to scan through the law books or are open to hiring the services of an experienced attorney such as the Law Offices of Nick Nemeth, there are more than one ways to save taxes on capital gains, provisioned in Section 121 of the Internal Revenue Code. The blog enumerates some such measures

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Unfiled Tax Returns Refund and How to Get Yours

Filing unfiled tax returns and know the limitations

Do you have an unfiled tax return refund owed to you but unsure how to file for it? Have you received a notice from the IRS stating you have unfiled tax returns and they are withholding a refund until you file delinquent taxes? Not filing just one return, even if it is unintentional, can wreak havoc on your life.  Not knowing what to do or how to do it increases the stress. Don’t panic, we are here to help you! Unfiled Tax Returns If you know that you have an unfiled tax return(s) or you have received a notice from

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IRS Appeal, Appeal Issues, and Appeal Tax Relief

Filing an IRS Appeal

If you have received a certified letter from the IRS declaring a Final Notice of Intent to Levy, the letter will also state you have a right to file an IRS appeal.  It is imperative that you take immediate action.  It is also in your best interest to contact a professional tax attorney.  A Final Notice of Intent to Levy can have disastrous consequences on your financial future.  The IRS can freeze your bank account, and any other account with your name on it, whether the money is yours or not.  They can place a garnishment on your wages resulting

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Tax Lien vs. Tax Levy: Examining the Differences

Tax time- know the difference between Tax lien and Tax Levy

Filing a tax return must be a priority for every taxpayer, as the October deadline for FY 2015-16 is around the corner. That’s because failure to file a return can give the almighty IRS the right to use the several provisions it has in its arsenal against defaulters. In fact, if caught on the wrong foot after a Taxpayer Delinquency Investigation, the defaulter may have to serve up to 1 year behind bars for each year they did not file a return (maximum period being 5 years), and/or will be required to pay a fine. The upper capping for the

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How to Avoid Wage Garnishments


Wage garnishments occur when you have an outstanding tax debt owed to the IRS and any other means of collecting the debt have not been achieved.  Your employer receives a written notice from the IRS requesting a portion of your wages to satisfy your outstanding tax bill.  By law, your employer must obey this request.  There are ways to avoid and stop wage garnishments. If you receive a notice that you owe taxes, take action immediately. Options Of course, the most sensible way to avoid wage garnishments is to file your taxes on time and pay the taxes you owe.

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IRS Tax Issues, Resolutions, and Help


Millions of Americans face tax issues every year.  Whether it be an audit, an unfiled tax return, a tax lien, or a garnishment of wages, any tax problem with the IRS can wreak havoc on an individual, his or her family, and/or business.  The good news is there are resolutions to tax problems and help is available when dealing with the IRS. Tax Issues The IRS sends a letter and by simply opening an envelope, you have a tax problem.  The fear and intimidation of the IRS sets in and can be overwhelming.  Perhaps you forgot to file a return

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