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Debt Relief

Is There a Statute of Limitations on IRS Audits?

Is There a Statute of Limitations on IRS Audits?

By on May 31, 2018 in Debt Relief, IRS, IRS Audit | 0 comments

An Internal Revenue Service (IRS) audit is an unwelcome thought for most US taxpayers. Even just the idea of an audit can cause serious stress and anxiety regardless of whether you think that your returns are in good order or not.  If you are at all concerned about the potential for an audit, you should know up front how long the IRS has to target your return.  For many years the statute of limitations for an IRS audit was 3 years, but in the last several years, the IRS has added many exceptions that can extend this period from 3 years all the way up to 6 years. Here are some facts you should know about the statute of limitations on audits:   1. If you omit more than 25% of your income on your tax return, then the IRS statute of limitations increases from 3 to 6 years.   2. The IRS also gets six years to audit you if you omitted more than $5,000 of foreign income (If you have interest on an overseas account, for example).   3. If you have never filed your return, the IRS does not have to abide by any statute of limitations so they can audit you anytime.   4. The IRS also has no statute of limitations if you omit certain tax forms. Plus, once an assessment is made, the IRS collection statute is usually 10 years.   5. If the IRS feels like they need more time to determine whether they should complete an audit, they may ask you to sign a form which extends the right to audit by an additional one year.   Successfully Navigating the IRS Audit Process   Audits are serious and complicated and if you are concerned that you might be the subject of one, you might want to consider getting tax support from a reputable tax firm.  Success Tax Relief has helped many taxpayers prepare for and navigate an IRS audit and we can help you as well. We can review your current tax documentation to determine whether you are at risk of an audit, and if you have received a letter regarding an audit, we can manage all communication with the IRS...

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Back Tax Debt Relief Under the New Tax Law

Back Tax Debt Relief Under the New Tax Law

By on May 21, 2018 in Debt Relief, Tax Debt, Tax relief | 0 comments

The Internal Revenue Service (IRS) has tried to make life a bit easier for those who owe back taxes. The IRS Fresh Start Initiative was put in place to help make it easier for taxpayers to pay back their tax debt and avoid tax liens.  Here are some key parts of the new tax law that you should take note of if you currently owe back taxes to the IRS: Things to Keep in Mind if You Owe Back Taxes   Installment Agreements: An installment agreement allows taxpayers to pay their tax debt over time, rather than in one large lump sum. The IRS has made the application process for an installment agreement more simple and straightforward.  Now, individual taxpayers who owe the IRS up to $50,000 can pay their tax debt in monthly direct debit payments for up to 72 months (six years). If you fall into this category, you will likely not have to show the IRS detailed financial documentation as required in the past.  Use Form 9465 to apply.  If you owe more than $50,000, you are still required to present the detailed financial documents.   Offer in Compromise: An Offer in Compromise allows a taxpayer to pay the IRS less than they actually owe to resolve their debt.  An Offer in Compromise is now available to a wider group of taxpayers and the application process has also been streamlined to make it easier and user-friendly.   Tax Liens: The new tax law also impacts the threshold at which the IRS will file a Notice of Federal Tax Lien. The amount has been increased by the IRS to $10,000.   The IRS has made a concerted effort to simplify the process for applying for debt relief programs and has, in many cases, increased the thresholds for who may qualify.  The net result is that more taxpayers can now benefit from these tax relief programs and actually put their tax debt behind them once and for all. Put Tax Debt Behind You   It’s important to note that if you have a significant tax debt and are not sure best way to move forward, you may also want to partner with a professional tax relief company that...

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Getting Help With State and Federal Tax Debt

Getting Help With State and Federal Tax Debt

By on May 17, 2018 in Debt Relief, IRS Debt Forgiveness Program, Tax Debt | 0 comments

More than 18 million Americans owe money to the IRS.  If you owe federal or state tax debt, making a plan for paying off this debt as soon as possible is extremely important.  There are many reasons taxpayers have trouble paying their tax debt and fall behind.  Some of the most common reasons include being too busy to complete the paperwork, experiencing a major life event that prevents them from filing, or simply not having the resources to pay the debt. No matter the reason is for getting behind, there are many resources to help you get back on track.   The Internal Revenue Service (IRS) offers several programs that you may be able to take advantage of that can help you take control of your outstanding tax debt once and for all.   Installment agreement:  An installment agreement allows you to pay your tax debt off over time, rather than all at once. Think of an installment agreement like a credit card. You make a monthly payment to the IRS or the state each month. This payment includes your tax debt plus and penalties and interest and you can generally have up to 5 years to pay down your debt. Offer in Compromise: If you have a financial hardship that makes you unable to pay your tax debt in full, you may qualify for an Offer in Compromise. This program allows you to settle your tax debt for less than you owe. You have to prove to the IRS that you are actually unable to pay, so be prepared to show detailed financial documentation. Not currently collectible status:  Another option that the IRS offers is where the IRS actually agrees not to collect your tax debt for a period of time (usually 1 year).  Getting the status “not currently collectible” means that according to the IRS, you have no ability to pay your taxes. This classification will stop a levy, lien or termination or denial of an installment agreement.   Put Your Tax Debt Behind You   As you decide what path to pursue, you should be aware that if you continue to let your federal and/or state tax debt add up, you will have to pay much...

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State Tax Debt Resolution: When Should You Seek Professional Help?

State Tax Debt Resolution: When Should You Seek Professional Help?

By on May 10, 2018 in Debt Relief, Tax Debt, Tax relief | 0 comments

Do you owe back taxes to your state tax office?  Is the amount too high for you to pay off?  If you are unable to see a path for paying this state tax debt off in the foreseeable future, it may be time to get professional tax help.  Most states follow the IRS guidelines for resolving tax debt, meaning they may contact you soon after they realize that you have not paid. You should be sure to be aware that many states often collect back taxes more quickly than the IRS.  This means that you may have less time to find a solution before you are hounded by your local state for repayment. The bottom line is that it’s always better to be proactive about paying your tax debt. Don’t wait until the last minute to repay your state tax debt. How Can a Tax Firm Help Resolve Your State Debt?   A professional tax service can help you come up with a reasonable plan for settling your state tax debt once and for all. This plan may include reaching out to your state agency before they contact you to find out what kind of programs you may qualify for if you are unable to pay at the present time. For example, most states allow taxpayers to request an installment agreement which allows you to pay your state tax debt over time, rather than in one lump sum. You can pay your tax debt in monthly installments for over a period of several years. You will still pay penalties and interest, but have more time to pay, providing you with financial flexibility. You might also qualify for what is known as an Offer in Compromise if you cannot afford to pay the state what you owe. The application process for an Offer in Compromise is complicated and a reputable tax firm can help ensure that you complete a strong application, giving you the best possible chance of getting approved.  You will need to provide detailed financial information in order to make your case, and a tax firm can guide you through this process. Benefits of Consulting a Tax Relief Firm   One of the most useful functions a tax firm...

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Georgia Tax Debt Settlement: Qualifying for an Offer in Compromise

Georgia Tax Debt Settlement: Qualifying for an Offer in Compromise

By on Apr 30, 2018 in Debt Relief, IRS, Tax relief | 0 comments

If you live in the state of Georgia and are unable to pay your total tax debt, you may qualify for a tax relief program called an Offer in Compromise (OIC).  In some cases, the Georgia Department of Revenue allows a taxpayer to settle their tax debt for less than the amount that they actually owe.  Each case is reviewed individually, and the Department of Revenue generally looks at the following factors to determine whether or not to grant an OIC: The taxpayer’s ability to pay the total due The amount of equity the taxpayer has in assets All current and future income All current and future expenditures Any unusual or changed circumstances or life event Whether the state will be able to collect the full amount in a reasonable time Is granting an Offer in Compromise in the state’s best interest? Preparing Your Offer in Compromise Application The state reviews many Offer in Compromise applications each year. The most successful applications generally illustrate one or more of the following: Doubt that the taxpayer could ever actually pay the full amount of taxes due Doubt that the taxpayer actually owes the full amount of taxes assessed Proof that collecting the full amount due would create a significant economic hardship on the taxpayer if collected. To submit an application for an Offer in Compromise to the Georgia Department of Revenue, you must provide detailed financial information to document your financial situation.  The Department of Revenue recommends that you include a collection statement with all appropriate documentation along with a written summary explaining why paying the full amount will create a significant financial hardship for you. You should be prepared to include financial documents including bank statement, mortgage statements, debt summaries, etc. In addition, in order to qualify for an Offer in Compromise in the state of Georgia, you must also have filed all past tax returns and reports and you must have received a final notice from the state for all taxes that you owe. Finally, you cannot be the subject of an active bankruptcy claim to qualify. Submitting Your Offer in Compromise to the State of Georgia If you think that you may qualify for an Offer in Compromise...

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Back Tax Debt Relief Under the New Tax Law

Back Tax Debt Relief Under the New Tax Law

By on Feb 22, 2018 in Debt Relief, IRS, Tax | 0 comments

While specifics about the new tax laws are being reviewed and analyzed, you may be wondering how this will impact the back taxes that you already owe the Internal Revenue Service (IRS).  The tax bill that was signed into law in December of 2017 will impact all of us over the course of the next several months to a year. You may have heard that the tax law benefits the wealthy and/or corporations.  The fact is that you can also expect to see your monthly income rise a bit, as the government will take out less each month for taxes, which will be disproportionately low for lower income families.  The new tax bill will impact how you file your taxes in the coming years, but if you already owe back taxes to the government, you can consider one of the following options to resolve your debt and move forward once and for all. How to Settle Tax Debt Consider alternative payment options:  Interest and penalties add daily to your tax debt, so you may want to consider alternative ways to pay off debt if possible.  Look into no interest credit card options, low-interest loans from your local bank or even a family member or friend to help pay off your tax debt. Bankruptcy is another option for individuals that have exhausted other options. Government programs:  The Fresh Start Initiative was designed and implemented specifically to help those with back tax debt. If you are not able to pay off your debt in one lump sum, you can request what is known as an installment agreement that allows you to pay your debt over time. So, instead of paying the full amount you owe now, you can make monthly payments over the course of 3-5 years.  Additionally, if you are under significant financial hardship, you may qualify for an Offer in Compromise (OIC), an agreement that settles your debt for less than you owe. Tax Support: If you owe back taxes to the IRS, your tax situation is likely complicated and perhaps even overwhelming.  A reputable tax firm can help review your current tax situation and help you decide the best path forward, given your past returns and the new...

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