Understanding IRS Tax Levies and How to Stop Them

IRS Tax Levies With Nick Nemeth

A tax levy is one of the most destructive collection tools used by the IRS, which involves legal seizure of taxpayers’ assets against outstanding tax bills. A tax levy should, however, not to be confused with a tax lien. A tax lien is only a claim made against taxpayers asset, whereas a tax levy is the legal seizure of the assets. If you have any unpaid tax bill, the tax authority can levy your bank accounts, financial belongings, investment accounts, wages, pension, insurance policies,  and even physical assets to satisfy a tax debt. The post outlines various types of tax

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4 Most Common Reasons the IRS Penalizes Taxpayers and Ways to Avoid a Penalty


The IRS is a difficult master that takes every instance of tax default very seriously. It levies heavy penalties on the tax offenders to set a precedence that discourages taxpayers from defaulting on their outstanding taxes. The sad part about paying a penalty is that often these penalties could have been easily avoided if we a little more aware and strictly adhered to the deadlines. Let’s see what are some of the most common IRS penalties that can easily be avoided. 1. Penalty for Mathematical Errors Math tests have given me several sleepless nights during my school days. When I

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The Roadmap to Dealing with an IRS Tax Issue

Resolve IRS Tax Issues with MyIRSteam

One in five people in the U.S, majority of them being the new taxpayers, find themselves stuck in the IRS tax issues. Out of which many go for a quick fix. As they say, any decision made in the haste is an invitation to a problem. It is, therefore, advisable to do your due diligence before taking any course of action. While there are many accredited firms, attorneys, and enrolled agents who can help you resolve your IRS issues, there are also many unscrupulous companies waiting to encash on your insecurities. Any company that is making larger than life claims

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Understanding IRS’ First-Time Penalty Abatement Policy

Tax Abatement Policy - with Nick Nemeth

Not many people know that if the IRS charges you or your business with additional penalties and interests, you can request the IRS for tax abatement. Individuals and business taxpayers can request an FTA (First-time penalty Abatement) for failure-to-file, failure-to-pay, and/or failure-to-deposit penalties for a single tax period. It is, however, important to prove a reasonable cause for the failure to compliance with the tax law.  An FTA was introduced to help first-time defaulters to have a clean compliance history. Continuing the discussion, the post provides basic knowledge to help you resolve IRS problems and get your tax penalties or

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Is Your Financial Hardship Preventing You from Paying Off Your Tax Dues? Read This!

Tax Dues With with Nick Nemeth

IRS expects the taxpayers to pay their taxes on time. In case a taxpayer is unable to pay their taxes, the IRS may levy a severe penalty on them. The penalty may include late payment fees and interest on the due tax amount.  If you have been facing a tax issue with the IRS, it is advisable to have it resolved as soon as possible to avoid any legal action. The good news is that if you are willing to pay the due taxes, but are unable to do so immediately because of a financial hardship, the IRS offers debt

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Qualification Criteria for Innocent Spouse Tax Relief

Innocent Spouse Tax Relief with Nick Nemeth

Many married taxpayers file a joint tax return to qualify for the tax benefits attached to it. When filing jointly, both spouses are equally liable for all taxes, interests, and penalties that arise from the joint return – even if the couple gets divorced or only one spouse earned all the income or claimed deductions. There can be, however, a case wherein one spouse is innocent of the other’s tax debts, which is why the IRS has innocent spouse tax relief in place to help the innocent spouse get relief from tax debts. Read on to learn more about innocent

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Received an IRS Tax Audit Notice? Don’t Panic! Here’s Help

IRS Tax Audit Notice with Nick Nemeth

There can be a very few things more upsetting than receiving an IRS tax audit notice, especially when you have been filing your taxes on time. The IRS has the authority to audit returns within 3 years from the date of filing, but that does not mean you cannot receive a ‘letter bomb’ after that period. The IRS conducts tax audits to ensure taxpayers are accurately filing returns, and any inaccuracies or purposeful mis-reportings can lead to heavy penalties. To avoid errors and comply with tax filing regulations, consider seeking the help of a tax attorney offering tax advice and

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7 Most Frequently Asked Questions on Offer in Compromise

Questions on Offer in Compromise with Nick Nemeth

An Offer in Compromise (OIC) is one of the tax settlement methods offered by the IRS to its taxpayers, to help them settle their taxes for less than what they actually owe. The IRS, however, accepts an OIC only when it is fully convinced that the defaulter cannot pay the due taxes in full, not even through a relaxed deferred tax payment plan. Understanding OIC and its intricacies is not easy for a common man, and therefore, most taxpayers have several questions to ask. In this post, we discuss some of the most frequently asked questions and their answers. Let’s

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A Comprehensive Guide to Underpayment of Estimated Tax

Guide to Underpayment of Estimated Tax by Law Offices of Nick Nemeth

Owing taxes could mean additional penalties and interest that could have a substantial impact on your financial condition. Most of the tax penalties are triggered by not paying what an individual owes, not filing a tax return, or not paying enough tax to the IRS throughout the year. In this blog post, we cover the basics of underpayment penalties and interests imposed by the IRS and how to save yourself from the additional financial burden. Read on. Understanding Underpayment Penalty The taxes in the U.S. are collected on the pay-as-you-earn system and the amount is deducted from paychecks of most

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Debunking 5 Myths Related to IRS Tax Audits

IRS Tax Audits myths debunked by Law Offices of Nick Nemeth

You receive a letter that reads IRS on the cover. There is instantly a feeling that the IRS is to audit you and seize your property. Not exactly! IRS tax audits, in contrast to common notion, are neither commonplace nor as dreadful as you may think. In fact, most taxpayers do not really have to fear from IRS tax audits, as the IRS audits only close to one percent of tax returns every year. Even when the IRS is conducting an audit, many times the purpose is to simply verify a few income details. You can always call The Law

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