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Tax Resolution

The First Steps You Need to Take to Settle Your Back Taxes

The First Steps You Need to Take to Settle Your Back Taxes

By on Nov 20, 2017 in Tax Debt, Tax Resolution, Tax Tips | 0 comments

If you owe back taxes to the Internal Revenue Service (IRS), chances are you have already spent a lot of time worrying about how to resolve this debt without significantly impacting your day to day life.  Tax debt is a large financial and emotional burden and can be difficult to navigate on your own. Here are some tips on how you can settle your tax debt with the IRS once and for all. Key Steps to Settle Your Outstanding Tax Debt Confirm the exact amount that you owe:  If you have received a written notice from the IRS that includes an amount that you owe in back taxes, you should check this against your tax returns to ensure it is an accurate reflection of your debt. Your calculation may be different than the calculation the IRS has made, so it will be helpful to know the amount you actually owe. This will include the debt plus any interest and penalties accrued. File all tax returns: Even if you cannot pay what you owe, it is extremely important to file your tax returns each year. If you do not, you disqualify yourself from several important and possibly helpful programs that could settle your debt without paying it in one lump sum.  Filing your returns on time automatically reduces the number of penalties the IRS will charge you. Penalties and interest can add up fast and compound your problem. Face your problem sooner rather than later:  The longer you wait to address your back taxes, the worse the problem becomes. The IRS may not contact you for a period of time about your back taxes, but they will eventually want a payment.  The longer you wait to address the issue, the more you will owe in penalties in interest and the more difficult it will be to pay. Do you qualify for a payment plan?:  The IRS offers installment agreements to many taxpayers who owe money to the IRS. This allows you to pay your debt (and interest and penalties) over time via monthly payments, rather than a large lump sum.  Just like a credit card, you will have a minimum amount due and as long as you pay on time....

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Can You Negotiate Your Georgia State Back Taxes?

Can You Negotiate Your Georgia State Back Taxes?

By on Nov 13, 2017 in Tax Debt, Tax Resolution, Tax Tips |

Negotiating back taxes is not generally something most taxpayers think is even possible. But, over the last decade or so, the Internal Revenue Service (IRS) and state tax agencies have been working to improve overall accessibility and the perception that they are willing to work with taxpayers. The Georgia Department of Revenue (GDOR) has instituted several programs to help Georgia taxpayers with a fresh start.  It does require some negotiation and communication with the IRS. You can negotiate directly with the IRS to reduce the amount of tax that you owe or to request that you pay it back over time rather than in a large lump sum.   Here are some tips on how to negotiate in a way that may yield positive results for you! Offer in Compromise: If you are unable to afford the tax debt you have incurred with the state of Georgia, you may qualify for an Offer in Compromise (OIC). This agreement allows you to pay less than the amount you owe.  You should be aware that before you apply, you must have already filed your past tax returns.  You may qualify for a Georgia OIC if you meet one of the following criteria:   You are unable to pay the entire amount of taxes you owe, even by selling assets or through an installment agreement. There is a legitimate doubt that you actually owe part or all of your assessed tax debt. There is a special circumstance that makes full payment of the taxes owed an economic hardship.       2. Installment Agreement:  An installment agreement allows you to pay your tax debt off over time, rather than all at once. Spreading the   payment of your debt over time can offer the flexibility that you might need to finally pay off your tax debt.  You should complete Form GA-9465 to apply. In order to be eligible, you cannot have filed bankruptcy, have any unfiled or late tax returns, or have a pending offer in compromise with the Georgia Department of Revenue.  Finally, if your state tax liability has been assigned to a private collection agency, you will not be eligible for an installment agreement. How To Negotiate With The GDOR The best way to...

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Owe Money to the IRS? 4 Steps to Lower Your Debt

Owe Money to the IRS? 4 Steps to Lower Your Debt

By on Jul 25, 2017 in Tax Resolution, Tax Tips, Taxes | 0 comments

Are you one of the millions of Americans who owes money to the Internal Revenue Service (IRS)?  Whether you are behind because you have been overwhelmed and have not had time to get your taxes done, or you fear that you simply do not have enough money to pay, it is important to get a handle on your personal tax situation as soon as possible. Once the IRS realizes that you have not paid your taxes, they will begin to reach out to you. First by email, then communication will get more serious the longer your taxes remain unpaid.  The most serious consequences are wage garnishments, levies on your bank account and liens on your property. These consequences should be avoided at all costs as they can lead to serious financial hardship. There are several important steps you can investigate today to lower your tax debt and get back on the road to financial freedom: How to Help Lower Your Tax Debt Installment Agreement: An installment agreement is a monthly payment plan that you establish with the IRS so that you can pay your debt over time, rather than in one lump sum.  It’s essentially like a credit card payment and you will pay over a period of months (or years) your debt as well as interest and fees that have accrued.  In some cases, individuals qualify for a partial payment installment agreement, which allows you to make monthly payments on a reduced dollar amount. Offer In Compromise: An offer in compromise gives you the opportunity to settle your debt for less than you actually owe.  This is particularly useful when you owe the IRS more money than you can afford.  An offer in compromise requires much paperwork and is not always granted, but can save you thousands of dollars if you qualify. Bankruptcy: There are instances in which your tax debt may be eligible to be waived under Chapter 7 or Chapter 13 of the Bankruptcy Code. Doing so requires some intricate knowledge of tax law and bankruptcy law, so you may want to consult with a professional if you are considering this route. Seek Professional Tax Support: Getting out from under tax debt with the IRS is...

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Taxpayer Died Before Filing A Return? Steps Family Members Need To Take

Taxpayer Died Before Filing A Return? Steps Family Members Need To Take

By on Feb 26, 2017 in tax firms, Tax Preparation, Tax Resolution, Tax Tips | 0 comments

If you have lost a loved on in the last year and are looking ahead to submitting your annual tax return, you may wonder if it’s possible to deduct any of the funeral expenses on your taxes.  Unfortunately, the Internal Revenue Service (IRS) does not allow individuals to claim these expenses as deductions unless the funeral was paid for directly by the estate. While you cannot claim funeral expenses as a deduction on your annual tax return, you should know, however, that you might be able to claim medical expenses that have been incurred during the year. You can generally claim medical expenses that are used to prevent or treat a medical illness or condition. Tips for Deducting Expenses Related to a Family Member’s Death While you cannot claim funeral expenses as an individual, it is possible to deduct these expenses if they were incurred as part of the deceased individual’s estate.  The first and most important factor to confirm is whether the funeral expenses were in fact paid directly from the estate. If you are the executor of the estate and are preparing to file taxes, you should plan to use Form 706, which is called United States Estate (and Generation Skipping Transfer) Tax Return, to complete the calculation for estate’s tax liability.  Then you can use Schedule J to report these funeral expenses to the IRS. One thing to keep in mind if you are in charge of an estate is that it may not make sense to take this deduction if the amount of the estate is less than the taxable amount. Take the Stress Out of This Tax Season As tax season approaches, you may have all kinds of questions about this year’s tax return and may already be concerned about how much you might owe. Partnering with a trustworthy, reputable and dependable tax firm can help answer your questions, solve any tax issues you may have, and ensure that you complete your return in a way that maximizes legal deductions and credits while minimizing what you will be required to pay to the IRS.  The team at Success Tax Relief has more than 30 years of experience solving all types of tax issues including:...

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Married Couples: Filing “Jointly or Separately” What’s the Difference?

Married Couples: Filing “Jointly or Separately” What’s the Difference?

By on Feb 21, 2017 in Tax Preparation, Tax Resolution, Tax Tips | 0 comments

As a married couple you have some choices to make when tax season rolls around. There’s no doubt about it, you must file, but should you do it as Married Filing Jointly, or Married Filing Separately? Now some taxpayers are under the assumption that you only need to file Married Filing Separately when you are going through a divorce or separation. However, that’s not always the case. There are some benefits to married couples filing Married Filing Separately. It depends on a few things: Is one person’s annual income more than the other? In some cases, combining your annual income will help you save money, because as a combined income, you’ll most likely rank at a lower tax rate. Although this all depends on how much each person makes. For instance, if both people each brings in $40,000 – $50,000 a year, then whether you filed jointly or separately may not matter because you may end up paying the same in taxes. However, if one person makes significantly more than the other, it might be more beneficial to file Married Filing Separately. However, there are other things to take into consideration that may sway your decision. Was either one of you a student during the tax year in question? If you are looking to take advantage of some education benefits, then it’s best to file Married Filing Jointly because filing separately will not give you this benefit. So it might be wise to take into account how long you were enrolled as a student for that tax year. Many people get continuing education and go to school for a few months. If this is the case, it may not be worth taking the education credit. It’s up to you to weigh the pros and cons of the total adjusted gross income and whether or not it’s worth it to file Married Filing Jointly or Married Filing Separately. Do you have any children? Children are another big factor in determining whether or not you’ll want to file separately or jointly. If you want to claim the Child and Dependent Tax Credit you will have file jointly. Filing separately will not allow you to take this credit. So here it appears...

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The Biggest Problem with Having IRS Tax Debt and How to Fix It

The Biggest Problem with Having IRS Tax Debt and How to Fix It

By on Jul 22, 2016 in Tax Problems, Tax Resolution | 0 comments

The number one problem with being in debt to the Internal Revenue Service (IRS) is that you have a debt! There’s no way around it, if you have a debt with the IRS, consider yourself in a relationship with them until you paid what you owe in full. Until that glorious moment comes, you’ll have to avoid getting into other problems with the IRS because yes, it can always get worse! So let’s learn about what can be done to avoid this. First Important Rule: Communicate! Once you’ve accepted your financial situation with the IRS, the one thing you always want to do is stay in constant communication with them. This can often be a hassle depending on your daily responsibilities. There’s no need to sugarcoat it: communication with the IRS can be a time-consuming process. And lets face it, not everyone has the time to sit on the phone and wait until someone picks up, but if you have a debt to settle with the IRS, that’s precisely what you’ll have to make time to do. Communication is key. If you’re not communicating with the IRS, they have no way of knowing if you have any intention of paying your debt. If they don’t know, they will most likely assume that you don’t, and if that’s the case, you might want to get ready to be more uncomfortable than you already were. How the IRS Typically Communicates with You The first step that the IRS will take in collecting their funds is to inform you that you have a balance with them. You can expect to receive a letter from the IRS indicating you of the amount owed. At this point, it’s recommended to do one of the two things—possibly even both: Call the IRS to confirm. Read all about how you should talk to the IRS in this article, How to Stay Calm When Talking to the IRS. Write a Letter of Explanation to confirm or dispute. If you don’t know what a Letter of Explanation is, we also have information about that here. This doesn’t necessarily fix your problem. You’re still in debt and you still have to communicate to the IRS. Depending on how much...

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