Most Commonly Asked Questions About Tax Debt Relief
1. What is an Intent to Levy Notice?
Let’s hope that you never need to ask this question unless you’re going to school to learn about the tax business. Otherwise, you’ll need to quickly educate yourself about what the Intent to Levy notice is quick, fast, and in a hurry! If you’ve received this notice, it means that it’s the Internal Revenue Service’s (IRS) last attempt to inform you about paying your tax debt before they take the next line of action like garnishing your paycheck or seizing your bank account altogether. If you’ve received an Intent to Levy notice, contact a tax relief firm that can quickly address the IRS on your behalf to resolve the issue.
2. How am I responsible for payroll taxes?
It is an employer’s responsibility to withhold federal income taxes from their employee’s wages to pay to the IRS. The only way that an employer can be excused from this is if they have signed documentation in a W4 from the employee stating that they do not want their taxes withheld. Otherwise, the employer is fully responsible for collecting those funds into a trust then dispersing that money to the IRS. If the employer fails to do this, then the government has the right to charge the employer with criminal charges. Avoid this!
3. I just got audited. What do I do?
Address the IRS immediately. The first thing you want to do is let the IRS know that you are in receipt of this notice. Then you’ll want to get the details. If what the IRS representative is conveying to you seems overwhelming, then what you might need is a tax relief representative—someone who is familiar with tax laws and has experience communicating with the IRS regarding these kind of matters.
4. What if I can’t afford to pay my taxes?
If you cannot afford to pay the full amount of your tax debt, the IRS will work out a monthly payment agreement with you based on what you can afford. This is a much more reasonable option than neglecting to pay, and then waiting for the IRS to garnish your wages. Some people may think that wage garnishments are the same as paying upfront, but it’s not.
5. How much can the IRS garnish?
If your outstanding tax balance gets to the point where the government is now garnishing your wages, you no longer have the option to negotiate how much they can take. Legally, the IRS does not have any state or federal limitations as to how much they can deduct from your check. They can take up to 70% of your paycheck leaving you with little to nothing to live on. That’s why it’s best to arrange payment installments so that you can avoid this altogether.
6. I missed the deadline on filing my taxes. What do I do?
The sooner you file your annual taxes, the better. If you missed the April 15 deadline, you’ll end up paying a late penalty. If you owe, you may also pay a late payment penalty. But filing is better than not filing at all!