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How to File a Penalty Abatement Request

How to File a Penalty Abatement Request

By on Aug 2, 2018 in IRS | 0 comments

If you are late filing your taxes, the first thing you need to do contact the Internal Revenue Service (IRS) and let them know that you still have every intention of filing your annual taxes. You should also expect to pay a late filing and late payment (if you owe) penalty fee. These types of fees accrue on a daily basis. Each time you neglect to pay or file, the penalty fee adds on top of your late fees. This is where the amount you owe can quickly get out of hand. It’s also where many taxpayers find themselves in a substantial amount of debt. The professionals at Success Tax Relief are passionate about helping taxpayers get out and stay out of debt. One of the ways we do this is by empowering you with information. Many people are in tax debt because they don’t have the information needed to propel them into a better place financially. Many taxpayers might not even know that filing for a penalty abatement is even an option. As a rule of thumb, if you know you’re going to be late filing and in the process of requesting an extension, then by default, you should also file for a Penalty Abatement Request. How to File for a Penalty Abatement Request   There are 4 ways to go about filing for a penalty abatement:   Complete the IRS Form 843 Complete the IRS Form 843 to request an abatement on your annual tax filing. This form is a one-page form with only 7 questions—mostly multiple choice for you to answer. The first portion of the information you’ll need to submit is your name, full address, social security number, Employer Identification Number (EIN), telephone number and of course the dollar amount that you’d like to be abated. Also, don’t forget to sign this document. Neglecting one of these things can result in a delay and more fees added on to your tax balance. Call and verbally request a penalty abatement Anytime you call and speak with an IRS representative, he or she will make a record of the conversation you had. However, we encourage you to ask the IRS representative to provide a written letter to you so that there is some documentation to prove...

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5 Common Questions about Tax Relief, Answered

5 Common Questions about Tax Relief, Answered

By on Jul 11, 2018 in blog, IRS, Tax relief | 0 comments

When it comes to taxes, we understand that you have a heap of questions to ask. That is why Success Tax Relief offers free consultations. Over the past 30 years that we have been helping Americans get out of tax debt, we’ve discovered there are some common questions asked. We want to answer them right here so that you can get the most out of your free consultation with us. We hope these answers will guide you on the right path to complete tax relief:     Do I need to claim a child in order to file Head of Household? In order to file Head of Household, you can claim a child or dependent. There are two types of dependents: Child – A child doesn’t necessarily have to be related to you. If the child in your household is a stepchild, foster child, sibling, stepsibling, niece or nephew, he or she can be claimed on your taxes. However, the child must also meet the age requirement. He or she must be at least 19 years old. If he or she is a full-time student, then you are able to claim that person up until the age of 24. Your dependent must also live with you, and he or she can also have a job, but if the income provides more than half of his or her support, then you cannot claim that child. Qualifying Relative- A qualifying relative is for aging parents. They must live with you and make less than $4,050. Of course, you must be financially supporting them. Here, only one child can claim a qualifying relative. Do I have to pay taxes on my social security payments? This will all depend on how much money you make. If you have a significant taxable income, then you might have to pay up to 85% of your social security benefits. To get a better understanding of where you stand in the social security tax tier, visit the Internal Revenue Services’ website. What should I do if I receive a letter from the IRS? The first thing you should do is call an IRS representative to verify that the letter is valid. Once you have done that, then...

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What to Do If You Have a “Currently Not Collectible” IRS Status

What to Do If You Have a “Currently Not Collectible” IRS Status

By on Jun 27, 2018 in Credit Score, IRS, Tax relief | 0 comments

When taxpayers start looking into the process of resolving an Internal Revenue Service (IRS) tax debt situation, they may find themselves confused by the often complex and sometimes confusing array of codes and options that are involved. One of the most confusing options is perhaps the most powerful tool that you and your tax debt relief advocate have at your disposal, the Currently Not Collectable status. Let’s take a few minutes to quickly talk about what CNC is, who qualifies, and what you can do if you are able to get assessed as currently not collectible. What is Currently Collectable Status? To put it in the simplest terms, Currently Not Collectable Status or CNCS, is a form of deferment that is offered by the IRS for some taxpayers who currently are not in the financial position to make payments toward their tax debt without having such payments placed upon them, their families, or their business undue and extreme hardship. CNC status is often applied to a taxpayer for a period of one year and can be extended several times if necessary. It is often used as a way to reduce or eliminate a back tax debt, or at the very least to help the taxpayer prepare for the process of making payments. While the taxpayer is in CNC status, the IRS cannot garnish wages, levy a lien against property or bank accounts, seize assets, or undertake many other types of aggressive collection actions. They may still pursue several other types of action, however, and you are required to stay in compliance with a wide range of rules or your CNC status could be revoked. These rules generally involved not establishing large lines of credit, not purchasing new assets, and not investing in many ways. Who Can Qualify for CNC Status? Most people who have a substantial tax debt situation may qualify for CNC status. The process is fairly straightforward and involves a simple declaration of your financial and property assets that will be confirmed and examined by the IRS. There are many rules that apply to what assets can and cannot be counted toward your financial position. For example, retirement savings, children’s college funds, the value of your primary...

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How to Handle Partial Payment Installment Agreements

How to Handle Partial Payment Installment Agreements

By on Jun 20, 2018 in IRS, Tax Debt, Tax relief | 0 comments

Dealing with the Internal Revenue Service (IRS) for a tax debt issue is never an easy thing to manage. From the moment that you get that first letter informing you that you are under IRS investigation and facing an audit, your life is, to say the least, in a state of upheaval. Being presented with a tax bill of any amount can feel like a deathblow to your family’s dreams and financial health. The good news is that the IRS really isn’t all that bad. The IRS includes several measures that can help people just like you deal with a large and unexpected tax debt amount. One of those measures is the option of a partial payment installment agreement. How a Partial Payment Installment Agreement Can Help Your Tax Debt Situation   The Partial Payment Installment Agreement, or PPIA, is a method by which you can settle your tax debt to the IRS without the heavy burden of writing a check for the entire amount all at once. Just like a regular installment agreement, you are making payments to your tax debt over time in regular monthly payments, but with the PPIA you are only paying back a portion of your tax debt.   These types of installment agreements are much harder to get and there are very high criteria for those who can qualify. The PPIA is generally a second line option that is pursued after a rejected Offer in Compromise. Once your OIC has been turned down then you are eligible to apply for a PPIA. You must also meet the following criteria:   You owe at least $10,000 in total when taking into account debt, penalties, and interest. You can pay some of what you owe, but you cannot pay the full amount by the end of the term of the statue of limitations due to the fact that you do not have enough disposable monthly income available to you. Completed both Form 433 and Form 9465 or have applied for an installment agreement online. You have filed all of your past tax returns and are not in a state of bankruptcy. Have not had your OIC accepted by the IRS. You have no assets or you...

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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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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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