Call Today: 877-825-1179

La Porte Chamber of Commerce
VERIFIED Seal Success Tax Relief, LLC BBB Business Review    

Posts by Thelma

Tax Settlement Services: How They Can Free You from Debt

Tax Settlement Services: How They Can Free You from Debt

By on Nov 5, 2019 in IRS | 0 comments

Going through the headache of trying to clear your debt without tax settlement services can be…well…taxing! Such a process will take up time that you don’t have. If you’re not in the tax profession, then you will most likely spend a great deal of your time going through a crash course on all things that are related to taxes. Debt often occurs when people cannot pay their taxes after filing a return. Many factors can play into this debt: changing laws for businesses, emergencies or natural disasters. Even so, the IRS keeps track of your tax liability. You would rather pay off your debt as soon as possible, but the amount can accumulate with interests and penalties. The more the amount accumulates, the more you have to pay in back taxes. In the worst-case scenario, the IRS will put a lien on your property or even press charges for imprisonment. With that said, the IRS offers debt settlement because the government understands extenuating circumstances. If you negotiate with them successfully, the IRS will agree for you to pay a smaller amount. That way you won’t have to worry about the original total. In some cases, you can even file for an offer in compromise which is another form of a settlement. You need to know the paperwork, however, and what factors can help or hinder your request. While the IRS does want to help you avoid jail time and with payment options, the language can become rather complicated. This process alone can be frustrating for the regular taxpayer. On top of trying to understand how tax settlements work, you owe the Internal Revenue Service (IRS) money! So, somehow, someway, you are supposed to first understand how tax settlement works. Then you need to convince the IRS all by yourself that they need to exonerate you from your debt. No pressure, right? Believe it or not, many taxpayers go through this learning curve. Some are successful, but the majority of them aren’t. Many taxpayers who have attempted to get the IRS to free them from their debt end up spending more money. They have to pay a tax relief service to undo what they did. They were trying to take...

Read More
IRS Offer in Compromise (OIC) Preparation Guide

IRS Offer in Compromise (OIC) Preparation Guide

By on Oct 28, 2019 in IRS Debt Forgiveness Program | 0 comments

Not everyone pays their taxes on time. Sometimes there are extenuating circumstances, such as losing your job or suffering a family emergency. Even so, the IRS has a reputation for recording who has failed to file a tax return, or who has recurring debt through the years and missed a payment. Consider how the historic gangster Al Capone was finally arrested for tax evasion and not for his other extensive crimes.  Contrary, to what you may see in movies or with murderous gangsters, the IRS will not toss you into jail at the sign of the first missed tax payment. There are applications you can fill out for extensions, installment agreements, or a means to settle an accumulated debt. An Offer In Compromise is one option to allow you to get a clean slate when you can pay your taxes but would suffer financial hardship. It also applies when you cannot clear an accumulated debt.  What Is The IRS Offer In Compromise? The OIC is a compromise that allows you to pay a smaller amount on your tax debt. An individual has to send an offer for an OIC that the IRS can either accept or reject. An incentive to use this is when paying your taxes will cause short-term stress and liability or when you cannot pay the full debt. First, you need to be eligible to submit an OIC. You must have filed all your tax returns, received a bill from the IRS, make required payments for the federal year and deposits for the quarter at which you make the offer. Factors such as age, income, and education level will also factor into the IRS deciding to qualify you or not. Lifestyle is probably the hugest factor since the IRS will look at your cost of living, the homes, and cars you own, and any hint of financial irresponsibility.  As you can imagine, you need an influx of cash to get started on paying less debt to the IRS. You also need to prove that you can pay the money, but doing so would be deleterious in the long run. This is called effective tax administration.  Collectibility and liability are two other factors that can allow you...

Read More
IRS 1031 Exchange Rules: A Simple Definition

IRS 1031 Exchange Rules: A Simple Definition

By on Oct 23, 2019 in IRS | 0 comments

When you have assets, you always want to make sensible business decisions. That means knowing when you should sell or buy certain properties in the United States, and when a gain or loss will happen. You want to ensure that property being sold provides more value.  United States Rules For Real Estate Normally on personal property, you have to pay a tax on selling the estate towards the government. This tax is called the capital gains levy because it takes a percentage of the profit of a property sale. Those profits are capital gains for the seller.  There are some exceptions to paying a tax on capital gains. Per the Taxpayer Relief Act of 1997, a single homeowner doesn’t have to pay taxes on the first $250,000 from the sale while married couples don’t have to pay up to $500,000. You qualify for this exemption by living on the property from two to five years and designating it as your primary residence.  What 1031 Means To Real Estate Investors A 1031 exchange means that you purchase a property after selling your original investment, and both are equivalent in value at a minimum. In some cases, the new property can even be worth a higher value. 1031 is a tax-deferred exchange, which means that you don’t have to pay capital gains on the sale.  To engage in a 1031 exchange, you need to choose a qualified intermediary to hold the funds from the initial sale, which will then be reinvested into purchasing another property. A qualified intermediary can either be a person or a business with no conflicts of interest or relationships with either the buyers or the sellers. They have to serve as a neutral party.   Investors have multiple incentives to invest in this exchange. The tax deferral is one such incentive, to avoid paying on capital gains. You can also consolidate all of your property assets and streamline management, so as not to juggle hats, and recapture deprecation on estates that lose value every year.  1031 Rules For Exchanged Property How do you qualify for a 1031 exchange? First, create a purchase and selling schedule. You have a time window to locate this replacement within 45 days, and...

Read More
Federal Income Tax Rate in Texas: 2019

Federal Income Tax Rate in Texas: 2019

By on Oct 8, 2019 in blog, Consultation | 0 comments

Everyone must pay their federal taxes in the United States. Some states, however, offer more leeway than others do. The state of Texas, for example, does not charge an additional income tax; you will have to pay a .375% franchise tax if you run a business. You also do not have to pay estate or inheritance taxes, and counties determine if you have to do so for real estate or personal property.  Every state will see some changes with the 2018 tax legislation. People will have to pay differing amounts due to what the can and cannot write off in their return. Your income will determine part of that, of which tax bracket you will fill.  Your 2019 federal tax return will be due on April 1, 2020. If you get an extension, you will have to turn it in by October 1, 2020. Rates have slightly changed, so we’ll discuss the basics for what you need to know.   Federal Income Tax Brackets How do tax brackets work? They work on dividing your income into taxable amounts so that you are not paying the same rate uniformly. Instead, you pay the amount by which the maximum in each bracket. The brackets are as follows: 10% for $9700, 12% for $39,475, 22% for $84200, 24% for $160,725, 32% for $204,100, 35% for $510,300 and 37% for any amount above $510,300. The more income you earn, the more brackets you fill.   Confused? Maybe a concrete example will help. Let’s say that you earn 10,000 a year in USD. That puts you in the first marginalized bracket, which pays a ten percent margin rate. You only pay ten percent, however, on $9700 of that income, or $970. The remaining $300 is taxed 12%, or $360. Your total thus is $1360 to pay in taxes.    For salaried employees, the good news is that employers automatically deduct taxes from your paycheck. You then have that withheld amount to assist with paying taxes for the following year. In some cases, you may even get a refund if your income is below a certain amount.  Freelancers, business owners, and entrepreneurs are a different story. If you are freelancing, that must mean you do the withholding for...

Read More
IRS Payment Options: Can You Pay The IRS With a Credit Card?

IRS Payment Options: Can You Pay The IRS With a Credit Card?

By on Oct 3, 2019 in IRS | 0 comments

Paying Your Tax Bill Regardless of who you are in the United States, you must file your taxes to see if you must pay them. For people who earn under a threshold, they may get a refund. Everyone else has to pay federal tax, and sometimes state tax depending on your local laws.   Not everyone wants to pay a check or sign up for a direct deposit, however, when doing the important filing. You may be researching to see if paying by credit card is an option. We can provide a simple answer: yes. You can use your credit card to pay the money owed on your tax return. Optimizing Tax Payments On the surface, paying by credit card has many benefits. The transactions will go through relatively faster, for one, and that will save the worry about if the IRS received your check. Some of the benefits would be earning reward points and travel miles or getting more time to make the payment and not get behind on taxes. Once you get behind, you will have to pay penalties.   Even so, you need to know the tradeoffs. E-filing has increased convenience a fair amount, and that may reduce the potential benefits of using a credit card.  Using Credit Card Payments All credit cards charge interest on payments if you don’t pay it before a certain date. If you are certain that you can meet the date, then interest is a lesser concern. The later the payment, the higher the interest can grow depending on your card terms. Always read the fine print so you know what you’re paying, literally.  To use a credit card, you must prepare to go through a service provider, also called a payment processor. Each one charges a fee; with debit cards that charge is flat and usually under two dollars. Credit cards are a different story, service providers often charge by percentage. These include ones that are digital, including PayPal Mastercard. In short, you may find yourself paying a larger amount by credit than you would by debit in the long run.  For rewards, you cannot just charge by credit card and hope that the large payment will accumulate points. Some travel and...

Read More