Category: Blog

All You Need to Know about IRS Debt Forgiveness

IRS Debt Forgiveness

What Is IRS Debt Forgiveness? There are times when defaulting taxpayers genuinely want to pay their debt, but are unable to because of an ongoing financial crisis. The IRS recognizes such scenarios, and therefore, has several debt relief and debt forgiveness provisions to help well-intentioned taxpayers avoid any financial hardship that may arise if they are forced to pay more than what they can afford. In this blog post, we take a look at provisions that the IRS offers to taxpayers. Let’s begin. Offer in Compromise (OIC) Taxpayers may request the IRS to reduce their existing tax liability in a

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Innocent Spouse Relief : What You Need to Know

Innocent spouse relief

Married couples who decide to jointly file a tax return can reap certain tax benefits in the form of tax breaks and credits. When you file jointly, however, you are jointly and severally liable for tax debts and any additions to it, such as interest or penalties, which may arise later from the joint return. Both spouses who file a joint tax return are liable for an equal amount of tax return, even if they divorce in the future or only one spouse earned all the income or claimed improper credits or deductions. What is important to note is that

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Must Know Information about IRS Levies

IRS bank levy release

If a taxpayer fails to pay their due taxes, the IRS holds the right to levy their property in order to collect the outstanding amount. After assessing the debtor’s tax liability, the IRS sends them a “Notice and Demand for Payment” (a tax bill), which is followed by a “Final Notice of Intent to Levy and Notice of Your Right to A Hearing” (also called “levy notice”). The second letter is sent at least 30 days before the date decided to levy the defaulter’s property. Taxpayers can not only avoid a tax levy, but may also get it released, provided

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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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