Showing posts with label Comparing the best tax debt relief companies. Show all posts
Showing posts with label Comparing the best tax debt relief companies. Show all posts

Tuesday, September 15, 2020

Save On Taxes

Save On Taxes: Buy A Hybrid Car


The hybrid vehicles are significant in saving the tax payer from paying a big amount of tax. 




Those who are benefited by the purchase of the hybrid vehicles are dejected on the very mention of the possibility that the government at some point of time might restrict the launch of these vehicles in the market. 



The government of many developed nations have many a times made plans to prohibit the large-scale production of these vehicles and also to substitute the already on the run vehicles based on gasoline. However, in the recent times, the government of these countries has lent its support to the production and use of these vehicles. This decision is since the hybrid tax credit has shown its potential in saving the money. The tax creditor, as it is available straightforward from the money to be paid as tax, is greater to a tax deduction. The tax deduction is of the nature that it decreases the tax reliability on the rate of the tax to be paid. That is why the hybrid tax credit is of such great significance for the taxpaying person. A deduction simply reduces the tax liability based on the tax rate of the individual taxpayer to owe a hybrid vehicle. The fact could not be denied that the hybrid vehicle saves a great amount as it has superior gas mileage.




This type of tax credit can’t be applied for buying a second-hand vehicle. It is the responsibility of the manufacturers of the vehicles to provide the information about the credit amount to be put on it and this information is available to the buyers at the time of purchase of the vehicle that assists him to allege the credit. There are several conditions applied on the hybrid vehicles. Firstly, there was a time limit and this tax credit was made applicable for the vehicles available in the market within this limit. Secondly, it was mandatory to use the vehicle in USA only. Moreover, the credit started only after a model achieved the target of 60,000 sales. 




The Hybrid Tax Credit was included in the Energy Policy Act of 2005. Its introduction has proved that the government has finally understood the importance of the hybrid vehicles in market. It is now in the list of the government to reduce the use of gasoline dependent vehicles. The flip side of this tax credit is that this kind of tax credit is not always in the favor of the taxpayer, as he or she must make some sacrifice in order to serve the interest of the society.

IRS tax debt relief


How can I avoid IRS tax debt relief scams?


A: Although most tax relief companies are legitimate, there are scams that prey on people’s desire to find a quick solution. There are two main types of scams:

  1. Tax settlement companies that charge upfront high fees but don’t provide results.
  2. Companies that charge fees by telling you to do something illegal, then they take your money and run.


The second one is the most damaging to you, because they advise you to do something that breaks the law. For instance, they tell you to use a new Social Security number or Employer Identification Number. Basically, the advice is to try to hide from the IRS and start fresh with a new identity. This is a felony offense, so don’t do it!


The first scam for settlement is, by far, the most common. Companies claim that they can settle your tax debt for “pennies on the dollar” and that they “guarantee they can reduce your debt.” Again, they charge high fees to give you a quick settlement, but they don’t deliver. They also don’t give you your money back, even though they said they guaranteed the service.

To be clear, tax settlement is possible, but it’s not as common as these companies make it sound. You must fully disclose your financial situation to the IRS. After a thorough review, they may grant an Offer In Compromise ONLY if they see there is no reasonable expectation that you can repay everything you owe.




To avoid scams, just follow the three tips we provide above to review any company before you sign up. As long as you do your homework, you can avoid getting scammed..





Settle back tax debt issues.

IRS tax debt issues are more common than you may think and it is our mission to help you get out from under the burden and devastation that delinquent IRS tax debt problems can cause you if left unresolved. 






Your financial future is far too important to be left to chance or to gamble with how the IRS will decide to handle your tax debt relief without your proactive involvement. That's where we help with your tax debt. You, an inexperienced novice, do not want to take on the IRS especially when the stakes are this high. Our trusted, experienced and top rated tax debt law firms know how to represent your interests and negotiate an IRS tax debt solution for you that works. 


Our top rated tax resolution firms can help you avoid or stop IRS wage garnishment, IRS bank levies and IRS property seizure. A good IRS tax attorney can even help you with reducing your IRS tax debt interest and penalties. Anxiety and worry are lousy crises management tools. Anyone can find themselves with an IRS tax debt problem but the smart person gets the facts from the top tax debt resolution lawyers, learns his options and takes action to solve the problem. That's where we come in. 




IRS Form 433-A Collection Information Statement for Wage Earners and Self-Employed Individuals

IRS Form 433-A


The IRS Form 433-A, “Collection Information Statement for Wage Earners and Self-Employed Individuals”, is a financial disclosure that all applicants for an Offer in Compromise are required to provide as part of an OIC application. 





If you are like many taxpayers that are burdened with an insufferable amount of back tax debt, you have undoubtedly heard claims of “settling your tax debt for pennies on the dollar”. Like the proverbial, used car sales man, these claims are far-fetched as best. 





This disclosure provides the IRS with an in-depth “fact” based snapshot of your financial position and ability to pay your back tax debt based on your income and wages, monthly expenses, business information, and assets, and ultimately forms the basis of whether your Offer in Compromise offer will be accepted or denied.

The information provides an outcome what the IRS calls the Reasonable Collection Potential, which is used to determine if there is sufficient income to support a monthly payment with an Installment Agreement and what assets are available to be levied.


Offer In Compromise Acceptance Rates

It’s said that approximately 20 percent of taxpayers that apply for an Offer In Compromise are ultimately approved on the basis of the information submitted on the Form 433-A. Here in lies the key point, the determination on whether your back tax debt can be settled for less than the amount owed depends on the accurate and complete presentation of “facts” on the Form 433-A. 


IRS Form 433-A

The purpose of IRS Form 433-A is to provide the IRS with information about your income, expenses, and assets. IRS Form 433-A is a form filled out by a taxpayer who has been asked by the IRS to provide financial information in order that the IRS can begin to calculate how that taxpayer can pay off an outstanding tax debt.  


Tax debt



IRS Form 433-A should be used by taxpayers who are wage earners, or who are self-employed individuals who file a Schedule C. If you own a business and do not file a Schedule C (for example, if you own a corporation or are a partner in a partnership), then you will need to complete IRS Form 433-B as well. A professional tax company can provide IRS tax help with questions or with the filing of either form.


tax debt

You may be asked to complete an IRS Form 433-A by an IRS Revenue Officer or another official who wants to establish your ability to pay your existing balances with the IRS. Completing the IRS Form 433-A may allow you to establish that you are suffering a complete or partial financial hardship. On the other hand, by filing out IRS Form 433-A, you will also provide to the IRS information that they may not otherwise have about you.


Tax debt


Certain sections of IRS Form 433-A are filled out only by taxpayers who are self-employed. Usually, IRS Form 433-A is filled out when applying to the IRS for a tax debt repayment plan, such as an Installment Agreement (IA), an Offer in Compromise (OIC), or when applying for a Currently not Collectible (CNC) status, and has no other impact.



Tax debt

You should also be aware that if the IRS cannot verify the information provided on IRS Form 433-A (for example, by comparing your information to the W-2s sent to the IRS by your employer), then you may be asked to provide verification of the income, expense, and asset information. You can also expect the IRS to ask you for verification if your living expenses are particularly large when compared between the general cost of living in your county and the information given on IRS Form 433-A.


Tax debt

A tax professional can help you fill out IRS Form 433-A to make sure that you have provided all the necessary information and substantiating documentation. This is most helpful if you don’t have clear proof of some of your expenses (for example, if you pay rent, food, or utilities by cash). A tax professional will be able to walk you through the income and expense verification process the IRS will use, and help you decide how you want to prove your income, expenses, and assets on IRS Form 433-A. Visit the IRS website for form locations or to download a copy of IRS Form 433-A. Call Community Tax today for IRS tax help with forms and getting out to tax debt.

Wednesday, August 26, 2020

Comparing the best tax debt relief companies

There any thousands of tax relief companies you can use, so how do you find the right one for your needs? 



Check the Better Business Bureau, since any legitimate tax relief service should be rated by the BBB. The best relief services have A ratings or higher. 



Learn how to find a tax debt relief company you can trust

Read independent third-party tax debt relief company reviews. To see if other people in a similar situation had a good experience. Some bad reviews should be expected, but too many on the same topic could show a pattern. 




Use an accredited tax relief referral network. Companies like Debt.com that offer referral networks typically have their own vetting process to find the best tax debt relief companies, so they do the legwork for you. 






Wednesday, July 22, 2020

IRS Payroll Tax Debt

Filing Prior Years IRS Tax Returns

IRS Tax Debt



Our tax resolution firms believe that it is in the best interest of the consumer to file all of their past due tax returns, regardless of ability to pay. The economic consequences of unfiled tax returns are severe there is a maximum 25% late filing penalty that can be applied to the tax. Combined with accruing interest, this late filing penalty can add up to almost 50% of the original liability in many cases. Our tax specialists will work with you to prepare and file all of your unfiled returns, even if you no longer have the original records from the filing years.



IRS Tax Debt



True Tax Returns Filed Over IRS Substitute Returns

Most people do not know that if you do not file a tax return the IRS will file it for you. When the IRS files the tax return for you they do not take into account any of your standard deductions such as mortgage interest, spouse, children etc.. When our clients see this huge tax bill most of them just freeze not knowing that there are options. If it your right as a citizen to file a true tax return over the substitute return the IRS did for you.Once the IRS receives your true returns they will void the ones they did for you. The IRS will zero out the debt and recalculate the debt and penalties and interest based on your true debt.



 Get IRS Tax Relief Now



Abatement of IRS Tax Penalties and Interest
Abatement of a tax liability means to reduce or change a tax, penalty, or interest. Most frequently, abatement refers to eliminating an assessed tax liability and adjustment references reducing or altering an assessed tax liability.


Penalties and interest average 30-40% of the overall tax debt so successful elimination of these is a high priority with your personal tax resolution plan. If there is a reasonable cause for abatement or adjustment, the IRS may be willing to review the penalties which created a tax liability.


    Our tax resolution firms pursue IRS tax abatement on penalties and interest for you, after all of your tax returns from all years have been filed and a monthly IRS payment has been established or renegotiated for you.


   Get IRS Tax Relief Now


IRS Tax Debt


When business owners are unable to meet their IRS payroll tax obligations, a trust fund tax liability is created. The IRS is aggressive in enforcement of trust fund taxes, and does not allow trust fund tax to be discharged in a bankruptcy, no matter how old the tax liability. This means that if you owe delinquent payroll tax, you must address the liability and let our tax experts find a solution for you.


The IRS reports that approximately 2 million businesses owe almost $50 billion in payroll tax. The IRS is increasing its enforcement actions, so the probability of facing a lien, levy or other action is increasing very significantly. To determine if you may have a trust fund tax liability there are two primary determinations:


IRS Tax Debt

1.) Whether you are responsible for collecting or paying withheld income and employment taxes. There are two main methods used to appeal IRS collection actions. The first is a CDP appeal and the second is a CAP appeal. A CDP Appeal must be filed within 30 days of a final notice of intent to levy. This allows a senior technical advisor within the IRS to review the case. This means it is being taken from the collection division of the IRS, who are far more aggressive concerning these matters. In most instances, you will receive much better results filing a CDP Appeal.

2.) Whether you "willfully failed" to collect or perform your obligations. Typically, the IRS has the right to take enforcement action against anyone who meets these determinant tests, even if they were not an officer or employee of the corporation which originally collected the payroll taxes.




Monday, July 20, 2020

Tax debt relief

Tax debt relief

Tax debt relief is opted for by people who have somehow failed to file their returns, which in result have made them liable to pay a repayment of back taxes. Call 855-913-0249 for free tax consultation. This is no doubt a severe and frightening state of affairs. 


Tax debt relief

This may occur due to various reasons. It might be an emergency such as individual or family illness, death in a family, change in economic condition, and lack of budgeting or lavish lifestyle. In these situations failure to pay the money or underpayment are the two most common things to happen. Call 855-913-0249 for free tax consultation. And if this thing really occurs one should fix it as early as possible that is because some forms of non-payment are liable to be punished by imprisonment for every year of taxes that has not been paid.




Tax debt relief

Tax debt relief is the best solution that one can go for if he or she has failed to pay the taxes in time. There are several tax debt relief agencies that offers tax settlement plans so that their clients may come out of their debt quickly. They have specialized professionals who work round the clock to help out their clients. Government also on the other hand has many provisions for the people who have their taxes due. Call 855-913-0249 for free tax consultation.  An underpayment is easier to pay back than the person who has just refused to pay the money. With the help of a professional mediator one can reduce his or her payable amount to a smaller fee, which will enable the government to get back a portion of the money that is owed.


Tax debt relief


Tax debt relief may often call for legal proceeding that is why a proficient lawyer who is qualified in this field is indispensable. The professional attorney can help to get the relief without imprisonment. 

Call 855-913-0249 for free tax consultation.


Whatever the reasons be, taxes due are always offensive in the eyes of law. The tax collectors in the first hand send legal notifications which if not answered leads to the prosecution and the professionals best handle these situations.

Tax debt relief


Conditions that lead to inescapable delinquency are always unacceptable but not beyond negotiation which can be done with the help of a professional tax debt relief help. A proper Tax debt relief program provides quite a few pertinent assistance such as embellished salary, bank charges, bankruptcy among other circumstances. A responsible citizen should never ignore to pay tax. Even if he or she failed in first position, a solution should be tried to find out and the amount should be paid back. 

Tax debt relief


The person who has failed to pay his or her tax for the first time shall also have to plan certain things for future so that it might not happen again. A tax debt relief might work first time but it should be kept in mind that government is always willing to help people but those who commit the same mistakes again and again shall be considered irresponsible and be put on trial. That is why it is always advised to have a certified help plan for the future payments.

Friday, July 17, 2020

Offer in Compromise (OIC)

An Offer in Compromise (OIC) is a formal agreement between a taxpayer and the IRS that settles the taxpayer’s debt for less than the full amount owed. It allows taxpayers who cannot afford to pay their delinquent tax liability the opportunity to settle permanently for a reduced amount. If an OIC is not prepared or submitted correctly or if the taxpayer is not in compliance, the IRS can and will reject an OIC.



tax return



The Internal Revenue Code allows penalties and the associated interest to be abated (removed) by the IRS if the taxpayer can show reasonable cause. Penalty abatement is often the first step in reducing size-able tax debt and has the potential to lower the amount owed to the IRS by up to 30%. Even if your account is paid in full, the IRS will refund you the penalties and corresponding interest once your penalty abatement is approved.



tax return



Not filing a tax return is far worse than filing a tax return and not being able to pay the tax amount owed. Un-filed tax returns may even be considered a crime, with punishments of up to $25,000 in fines and a 1-year prison sentence for each un-filed tax year.



tax return


Tuesday, July 14, 2020

IRS Settlements Offer Help for Serious Tax Problems




IRS Tax Debt Resolution




With Tax Day behind us, consumers and business owners who owe the IRS are not out of the woods. But while death and taxes are the big two inevitability, those with serious tax problems should know that it is possible to negotiate with the IRS to reduce past-due tax penalties and payments.










Americans, carrying more debt than ever, are also more likely to have tax problems than in the past. In 2004, the total of uncollected IRS taxes reached upwards of $250 billion. The number of levies (a key enforcement tool in which the IRS takes possession of assets to collect on unpaid taxes) topped 2 million during fiscal year 2004 - a 21 percent increase from 2003 and triple the 2001 number.


Tax problems merit professional help when individuals cannot pay tax liabilities of $10,000 or more, tax specialists can negotiate directly with the IRS on behalf of these consumers, helping them obtain settlements."

Tax relief specialists usually are attorneys or certified public accountants with special training and experience. Tax experts can navigate the intricacies of IRS forms and calculations, help consumers understand the criteria the IRS imposes, and then help them get back into good standing with the IRS.

Depending on the severity of an individual's situation, two types of IRS settlement are available: An offer in compromise reduces the principal amount owed to the IRS.

An installment agreement is a payment plan for the amount due and often includes reduced penalties. Remember that you cannot let overdue taxes languish. "The IRS is serious and increasingly aggressive about tax collection and evasion. Tax debt can result in a lien on a house or garnished wage."

Advisors can help consumers with the following steps: Evaluate the situation and determine the amount of taxes owed to the IRS.

Ascertain whether the situation meets IRS standards for "doubt as to collect ability" (i.e., unable to pay the full tax burden), "doubt as to liability" (i.e., consumer might not owe the tax), or "economic hardship."

Establish the full amount owed, including taxes, penalties and accumulated interest, and understand whether collection limitations or penalty cancellations are possible. Determine the best method for managing and eliminating the tax debt. Negotiate with the IRS to settle on an agreed course of action and resolve the debt.

While facing and handling tax debt can be painful, last year's bankruptcy reform legislation made it even more crucial for consumers to act. Historically, consumers in severe IRS debt might file for Chapter 7 bankruptcy protection or wait for the 10-year statute of limitations on tax liability to expire. Now, people are much more limited in the ability to obtain Chapter 7 filings. The bill's new "means test" leads many consumers instead to file Chapter 13 bankruptcy, which establishes a repayment plan, rather than wiping out all debt. Consumers with tax debt may find it much less costly and simpler to work with a debt resolution firm's tax relief service, which allows individuals to set up tax payment plans while avoiding court fees, attorney fees and bankruptcy judgments on their records.
 



Monday, July 13, 2020

How adjusted gross income (AGI) is one of the key element in determining your taxes.

Adjusted Gross Income (AGI) is a key element in determining your taxes. Lots of other things depend on your AGI (or modifications to your Adjusted Gross Income) such as your tax rate and various tax credits.




Adjusted Gross Income even impacts your financial life outside of taxes: banks, mortgage lenders, and college financial aid programs all routinely ask for your adjusted gross income. This is a key measure of your finances.






As you can guess, the more money you make, the more taxes you will pay. Conversely, the less money you make, the less taxes you will pay. The number one way to reduce taxes is to reduce your income. And the best way to reduce your income is to contribute money to a 401(k) or similar retirement plan at work. Your contribution reduces your wages and lowers your tax bill. You can also reduce your Adjusted Gross Income through various adjustments to income. Adjustments are deductions, but you don't have to itemize them on the Schedule A. As you can see, two of the best ways to reduce your taxes is to save for retirement, either through a 401(k) at work or through a traditional IRA plan.




Contributions to these retirement plans will lower your taxable income, and lower your taxes. Taxable income is another key element in your overall tax situation. Taxable income is what's left over after you have reduced your AGI by your deductions and exemptions. Almost everyone can take a standard deduction, and some people are able to itemize their deductions. Because your adjusted gross income is so important, you may want to begin your tax planning here. What goes into your adjusted gross income? AGI is your income from all sources minus any adjustments to your income. The higher your total income, the higher your adjusted gross income.

Thursday, April 30, 2020

Bank Levy/Garnishment Release

In each case referenced above, you are better off entering into a manageable agreement, rather than worrying about active collection or even worse, waking up one day to find out your money has been taken. Call 866-562-2800 for free tax consultation. 


It takes years of experience to be able to negotiate releases of garnishments and levies. For this reason, we recommend you preemptively address your tax matters. If by chance that ship has sailed, you can always contact the taxing agencies to request a release.


Below is a list of points to consider when doing so Things to Consider When Requesting a Levy/Garnishment Release. Call 866-562-2800 for free tax consultation. 

1. Don’t just ask for your money back. Provide valid reason/s why you need it. It is important to be specific here. You should list specific expenses that are due very soon and that you will not be able to pay if your funds are compromised. 
2. The most effective reason to request a release is hardship. If you can prove that you are unable to pay your necessary and reasonable expenses, you may be able to have some or all of your funds returned to you 
3. If possible try and calculate a reason installment agreement amount (see Installment Agreements below) and have backup to support your number. If you can enter into an agreement, sometimes you can also obtain a release 
4. Have contact information of the person, bank or business on which the levy/garnishment was served. Before you contact the IRS, you should have a fax number of the person or department that process the levy/garnishment. If the taxing authorities agree to issue a release, they will ask you where to send it. If you do not have this information ready, you may need to call back risking the chance of speaking with someone different that changes their mind about issuing the release. Call 866-562-2800 for free tax consultation. 
5. Request that a 2nd copy of the release be sent to you directly. If you are successful in request a release, you should follow up with the person or department to which the levy/garnishment was served to verify (1) they received the release and (2) that they are not going to remit funds to the tax agencies. If by chance they have not received the release, you can fax them a copy yourself assuming you have a one. 
6. Don’t wait until the last minute. It often takes more than one call to have a levy or garnishment released. If the IRS requires documentation you don’t have ready, you may have blown your chance if the funds are to be remitted in a day or two. Remember you only have 21 days for the IRS and sometimes less for your State to request that a levy be released. Call 866-562-2800 for free tax consultation.