Call Today: 877-825-1179

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

Tax Problems

Can You Inherit a Deceased Person’s Tax Debt?

Can You Inherit a Deceased Person’s Tax Debt?

By on Jun 22, 2017 in Tax Problems | 0 comments

Think of it this way: if you expect to inherit a deceased person’s money and estate, then you can expect to inherit everything else that comes along with it, including tax debt. Even though a loved one may have passed away, the outstanding debt to banks, credit card companies, and the IRS doesn’t go away. Their estate is normally expected to absorb the debt. Usually, these debts count against whatever money the deceased left behind them. In the event of a death, the deceased person has ideally left an administrator to take care of his or her estate. If he or she did not do this, then an authority from probate will appoint one. That person will handle the responsibility of taking care of the deceased person’s taxes. Regardless of who is in charge, the individual in question will have to ensure that all of these obligations are settled in a manner that satisfies expectations from those to whom money is owed. Death After Taxes Even when a person passes away, his or her tax debt obligations need to be reported up until the day he or she expires. The Internal Revenue Service (IRS) is very adamant about having United States taxpayers being accountable for their tax debt, even after death. This might be where the IRS’s intimidating reputation comes from because when it comes to collecting taxes, not even death is an excuse. Whoever has inherited the responsibility of taking care of the deceased person’s estate needs to take action as if the tax debt is their own personal finances, which means they could hypothetically inherit a fairly sizable burden depending on what the tax situation looked like before the deceased passed away. In spite of the fact that there have been a number of sweeping changes to tax law as of late, it doesn’t seem like the IRS has any intention on altering this policy in the near future. Inheriting the Deceased Person’s Responsibility This is nothing to take lightly. The IRS will not let up just because that person has passed away. They will still take all of the necessary actions to collect the tax money that is owed to them. The only difference is whom...

Read More
4 Types of Debts That Might Cause Your Tax Refund to Be Withheld

4 Types of Debts That Might Cause Your Tax Refund to Be Withheld

By on Jun 22, 2017 in IRS Audit, Tax Problems | 0 comments

  Believe it or not, there are very few reasons why the Internal Revenue Service (IRS) would need to withhold your tax refund. The list is very short, but they all have the same thing in common: they’re federal related. Existing Tax Debt If you currently owe the IRS, then the best thing you can do is pay that debt as soon as possible. It’s understood that sometimes the balance far exceeds the amount that one can afford to pay. This doesn’t mean that you should ignore the bill altogether, because it’s not going away! The IRS is very serious about collecting what is owed to them. Neglecting to pay your IRS tax debt can spiral into serious consequences. If you do not pay, the IRS will start garnishing your paycheck, taking a generous percentage from your paycheck until the total amount of debt is paid for. If this method isn’t quite getting the balance down, the IRS will take further steps to collect what’s owed to them. For instance, if you are in the middle of getting your wages garnished and you end up getting a refund for the next tax-filing season, don’t expect a check, and don’t make any extravagant plans either! Expect that amount to go straight toward your tax debt. Federal Debt Owing a tax debt is just one of ways the IRS can withhold your refund. If you owe any federal agency, the IRS has the right take your annual tax refund to pay that debt. Many taxpayers don’t realize that this also includes federal student loans. You can’t file bankruptcy to get out of paying your student loans. Because it’s a federal loan, be very confident in believing that any outstanding federal debt will be collected. It’s up to you, the taxpayer to choose whether it’s going to be on your terms or theirs, preferably yours! State Taxes Owing state taxes is another reason the IRS can withhold your annual refund. This is something homeowners and business owners need to take into account because this line of business can stretch across several states. Also, state taxes can easily be overlooked while trying to figure out your federal taxes, all the while crossing your...

Read More
5 Mistakes You Can Make from Doing Taxes Yourself

5 Mistakes You Can Make from Doing Taxes Yourself

By on May 8, 2017 in Filing Taxes, Tax Problems, Taxes | 0 comments

Doing your own taxes has many benefits. You can complete them on your own time and don’t have to pay anyone to complete the task, but it can also set you up to make errors that can cost you big time.  Tax software programs can be helpful in eliminating some potential errors, but they are only as accurate as the information that you provide. As tax day rolls around, consider 5 of the most common mistakes taxpayers make when preparing their own tax return. Math or calculation errors: Even if you are planning to use a tax software program which minimizes math or calculation errors, you still have to input the correct numbers for the software to work for you.  If you include an incorrect number or calculation on your return, the IRS may kick it back or it may increase your audit risk.  This can also reduce the amount you receive or increase the amount you owe to the Internal Revenue Service (IRS). Misspelled or mismatched names: If your name or the name of your spouse and/or dependents is misspelled or incorrect, and does not match what is filed with the social security office, the IRS will slow down processing your return and may even send it back to you.  This happens most often with women who have married and changed their name on some items (driver’s license, etc.) but not yet with the social security office. Direct deposit mistakes: Be very careful to enter correct bank account information if you are asking the IRS to provide your refund through direct deposit.  If you have just one number wrong, your refund could be delayed or lost altogether. Omitting a portion of your income: Keeping detailed records of all income you receive over the course of the year can be very helpful when tax time rolls around.  You should receive 1099 and W2 Forms for all income that has been reported, but there are instances when this does not happen. The IRS WILL receive all information on your income and if there is a discrepancy, there is an immediate red flag on your return. Forgetting to sign the dotted line: Even with most taxpayers completing and submitting their tax...

Read More
What Would An Obamacare Repeal Mean for Your Taxes?

What Would An Obamacare Repeal Mean for Your Taxes?

By on May 5, 2017 in Tax Preparation, Tax Problems, Taxes | 0 comments

No matter what side of the political aisle you fall on, we all must prepare for some changes in the coming years.  One of the big political questions is whether the Affordable Care Act (also known as Obamacare) will be repealed by the new administration.  Obamacare connected your health care to your annual tax return, and all Americans have been following the current tax guidelines since the Affordable Care Act (Obamacare) was enacted. Current Tax Regulations Related To Healthcare Currently, all Americans must verify on their annual tax return that they have healthcare insurance.  Specifically, this is requested on line 61 of each taxpayer’s 1040.  If you indicate that you do not have insurance and do not have coverage for more than 3 months, you could find yourself paying a tax penalty.  In addition, if you purchase your health insurance from the Exchange, you may also qualify for tax credits. When tax time rolls around, the Internal Revenue Service (IRS) is looking to be sure that you got the correct amount of financial assistance for your health coverage, so you have to answer some additional questions on your return.\ For the majority of Americans (the IRS estimates nearly 80%) the impact of Obamacare on an annual tax return is minimal (simply indicate that you have coverage).  But, as with most things, this can get complicated for those who do not fit in this majority. And, with Obamacare in jeopardy of repeal, you may wonder how your future returns will be impacted.  Right now, it is just simply too early to tell.  A repeal might mean less required information about your health care on your annual tax return and fewer (if any) penalty for not having insurance. A repeal could have other tax implications that we cannot predict. Stay Current With Annual Tax Changes Your best strategy to manage the change that is to come is to be sure that you are up to date on any and all tax changes each year.  One way to make sure that you are current is to partner with a tax firm that can manage this part of the process for you. Success Tax Relief works with many taxpayers all over the country...

Read More
How to Cope When There’s a Delay in Tax Refunds

How to Cope When There’s a Delay in Tax Refunds

By on Apr 29, 2017 in IRS, Tax Problems, Taxes | 0 comments

The most obvious piece of advice we can give you is just to stay calm. Contrary to popular belief, complaining and worrying will not expedite the refund process, especially if it’s already in transit within the United States Postal Service (USPS). The second piece of advice is to simply be patient.   Two Ways to Receive Your Refund  There is one of two ways you can expect to receive your federal tax refund: by mail or through direct deposit. If you’ve chosen to get a direct deposit, the turnaround time to receive your refund typically takes approximately two weeks. So if you haven’t received a refund within that time, then it’s time to take action.  What to Do  First, you’ll need to address the company or individual who prepared your taxes. It’s highly likely that they may not have submitted your annual filing, and if they did, there’s a chance that there might be a typo or some sort of discrepancy that delayed the filing and ultimately the refund. That’s why it’s always important to stay in constant communication with your tax filer because there could be an important piece of missing information that only you can provide. The quicker you can supply that information, the faster you’ll be able to receive your refund!  Be Patient  Now, if you’re expecting to receive your tax refund by mail, then don’t hold your breath! Refunds distributed by mail can take months to receive. A lot of this is due to the amount of work that’s placed on the USPS. On top of delivering regular mail, USPS workers have the responsibility of delivering checks to over a million taxpayers. This is what we mean by suggesting that patience is the best way to go about approaching a delayed tax refund.  What to Do If You Filed Your Own Taxes  If you filed your annual taxes and still have not received a refund, then you must take the responsibility of following up on the filing process yourself. The first thing you need to do is call the Internal Revenue Service (IRS) to confirm that they received your filing. Hopefully, this was already confirmed based on the registered mail, FedEx, or UPS tracking service...

Read More
Could I Lose My Passport If I Owe Money to the IRS?

Could I Lose My Passport If I Owe Money to the IRS?

By on Apr 16, 2017 in IRS, Tax Problems | 0 comments

  If you owe back taxes to the Internal Revenue Service (IRS), you may wonder what the most likely penalties or problems you could face.  The IRS currently has the power to garnish your wages and even put a lien on your property, but what else can the IRS do if you fail to pay your bill? What Is The FAST Act? According to a new law that was passed in late 2015, if you owe significant taxes to the IRS, the government now has the right to take passports from those who have not paid their debt. This law is called “Fixing America’s Surface Transportation Act” (FAST Act). The law provides long-term funding for transportation projects, including new highways, but also gives the State Department the right to revoke passports. How Does the FAST Act Work? You may wonder how this works since the IRS and the State Department are two different government entities. The IRS now provides information about seriously delinquent taxpayers to the State Department so that the State Department can revoke a passport for an individual who has a significant tax debt.  Significant tax debt is defined by the law as “an unpaid, legally enforceable federal tax liability” greater than $50,000, including interest and penalties. This amount will be adjusted each year for inflation and cost of living. There are a couple of important things to note about this law if you are concerned that it may impact you: If you are currently making payments on an approved installment agreement or an Offer in Compromise with the IRS, then you will not be subject to this new law. You should receive a written notice from the IRS if your information is being sent to the State Department that offers you 90 days to allow you to resolve any errors, make full payment, or enter into a satisfactory payment plan. The State Department will hold your passport request (or renewal during that time). There is NO grace period given before the State Department can revoke an existing passport. According to the IRS, they will begin sending information on delinquent taxpayers to the State Department beginning in early 2017. Their website will post updates. Keep an eye...

Read More