Nobody can escape taxes, but what if you are broke and can’t pay the whole amount? To deal with such situations, the IRS provides you with the option of requesting an Offer in Compromise (OIC) that allows taxpayers to dissolve their tax liability for an amount lower than the actual amount owed to the IRS. To request an OIC, applicants need to fill either Form 433-A (for individuals), 433-B (for businesses), or Form 656(s) (for corporation, LLC, and partnership). However, there are certain things you need to know when filing an IRS Offers in Compromise, which we will present in
A Federal tax lien comes against your owned assets in case you fail to pay your income or property taxes. You can also consider tax lien as an IRS (Internal Revenue Service) response to your unpaid tax debts. It allows the Federal system to initiate the sale of your property or owned businesses and when sold, can collect a portion or the total value, based on the amount owed by you. All in all, a tax lien may affect you in the following ways: Limit your ability to attain credit. Attach all your assets, including property, vehicles, business, or any
In 2015, Congress passed a bill with various restrictions on individuals with “seriously delinquent tax debt”, after two years of fine-tuning the enforcement details. The bill granted the IRS the power to refuse to renew or invoke the passports of tax defaulters, pushing thousands of people into panic, who were trying to figure out how to solve their tax issues. If you too are grappling with the same situation, the Law Offices of Nick Nemeth, PLLC, is ready to help. Continuing on the subject, we present an overview of all that you can do to prevent IRS passport block. Read
If like many Americans, you also owe back taxes and are not able to pay despite your best efforts, what should you do? The answer lies in many of the provisions offered by the IRS to help taxpayers who are unable to fulfill their tax liabilities. One such provision is IRS Tax Installment Agreement, a monthly payment plan to help you pay off your tax liability in easy monthly installments. Continuing on the subject, in this blog post, we answer five commonly asked questions about IRS Tax Installment Agreement. Read on. 1. What are the types of Installment Agreement? There
Although filing a joint return has its tax advantages, it has certain downsides too. When you submit a joint return along with your spouse, you are jointly and equally responsible for all the tax liabilities on tax return and penalties. This implies that if you don’t have any income or are unaware of the filed return details, you are still equally liable for tax payment. Based on your situation, you may be eligible for Innocent Spouse Tax Relief, that can provide you an exception to the general rule of joint liability. If you believe you may qualify and need a
Bookkeeping and payroll tax management are important and indispensable responsibilities of running a business. While many small businesses often perform such tasks in-house to save money and cut costs, it is advisable to rely on the services of an experienced tax law firm such as the Law Offices of Nick Nemeth, as any mistakes in payroll taxes or bookkeeping can cost dearly. If you aren’t familiar with payroll tax payments or are in need of a clarification for commonly encountered doubts, this compilation of answers to a few commonly asked questions is for you. Read on. What is payroll tax
The IRS usually starts the tax-levy process with wage garnishment, by contacting the employer of the person in default, asking to redirect a part of their future payments to the IRS. That’s just one of several types of levy the IRS can impose. While you can always count on the IRS tax lawyers at the Law Offices of Nick Nemeth to help you out with all sorts of IRS tax related problems, it would be sensible to cover the basics. Read on to learn more about the property IRS can lawfully levy, and how to prevent and undo the damage.
Have you received penalties for unpaid federal taxes? If you have, please read on. When a taxpayer is unable to pay their Federal taxes in time, they risk being subject to various penalties, but that doesn’t mean there is no way for redemption. The IRS has various provisions to help taxpayers clear their dues, and can even abate penalties and interest. Continuing on the subject, in this blog post, we present all you need to know about IRS penalty and interest abatement. Read on. Penalty Abatement IRS penalty abatement is a provision for the removal of certain IRS penalties. If
A federal tax lien is the IRS’s legal claim against the taxpayer’s property when they neglect or fail to pay their tax liability. The IRS uses liens to get people to pay the tax owed. It’s one of the many tools in their arsenal, and for many, it can be one of the worst penalties the IRS can inflict. If the IRS places a lien on your property, it can show up on your credit report and hampers your credit score. The worst part is you may not even be aware of the lien until you apply for a credit card, car loan, home loan, or to refinance.
The IRS introduced the First-Time Abatement (FTA) about 18 years ago, but it remains largely unknown and unrequested by qualifying taxpayers. If you feel you should be exempted from some federal penalties and interests, applying for penalty abatement may work for you. Your penalties and interests may be removed, partially or entirely, if you qualify for the reduction.