It’s no secret many people struggle with tax season. The rules for filing taxes are complex and always changing. The IRS indicates an estimated 8 million people owe over $83 billion in state and federal taxes, interest, and penalties. What does this mean? Unfortunately, many people are not in compliance with the Internal Revenue Service. Many businesses use accounting professionals to keep their taxes on track. Single taxpayers are left filing their own taxes or putting their future in the hands of someone else (that may or may not have experience) and find themselves in debt with the IRS.
The Leading Cause Of IRS Debt
There are many reasons that contribute to an individual falling behind on their taxes. Unfortunately, it leads to them owing thousands of dollars to the IRS. Hardships, illnesses, and a hectic schedule are all reasons that individuals give for failing to pay their taxes. Uncle Sam will almost certainly actively pursue you for all of the above reasons. The IRS will leave you fighting back, paying huge penalties, or both. If you’re behind on your taxes for not filing, catching up as soon as possible is your best option. The old saying; better late than never is applicable to imposed IRS penalties and fees.
What Are The Consequences Of Falling Behind On Your Taxes
If you find yourself behind on your taxes, you may be slapped with a tax levy. What is a Tax Levy? A tax levy is different from a tax lien. In fact, there are a few types of tax levies that are imposed for several different reasons. A tax levy is an administrative action taken against you by the IRS. They will impose a levy against your property or paycheck.
How Can The IRS Hit You With A Tax Levy
The IRS can and will seize your property for a tax debt collection balance that’s unpaid. They typically give individuals a 30-day notice with a right to appeal. However, If they suspect you’ll transfer assets or funds overseas, they don’t have to give an individual notice to collect or garnish your bank account. In fact, a taxpayer is not always entitled to a notice of their intent to levy your assets. The best way to avoid a tax levy is making an agreement with the Internal Revenue Service. An IRS debt settlement professional can help you come up with an arrangement or settle for less.
How Can You Stay Current On Your Taxes
The best way to avoid IRS penalties is to PAY YOUR TAXES ON TIME. Hire a professional accountant that has experience in current tax laws. If you can’t afford a professional, pay your taxes on time each year. More importantly, keep your records organized for the purpose of filing your taxes each year. Organizing your records can help you avoid situations like withholding taxable income or estimated tax benefits. More importantly, organized tax records can help you if you’re audited by the IRS. The IRS will never be shy about contacting you for a delinquent tax bill.
How Will You Be Notified Of Your Tax Debt
Most of the time the IRS will notify you of a tax debt via snail mail. Many people will agree their efforts are relentless. The IRA will take aggressive action to collect on your debt. You can also ask for help from the Internal Revenue Service by requesting a tax advocate.
Your taxes can leave you in a huge amount of debt. There is an updated tax table to help you calculate the amount of your deduction. For example, if you’re getting married or expect to have a child, you can estimate those tax deductions into the following year. Plus, taxpayers are warned against taking invalid credits on their tax return. There are specific tax brackets and tax rates that will apply to your unique situation. The federal tax exemption has also been modified for the upcoming tax season. Avoid huge tax penalties by getting the help of a professional tax consultant today.
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