INCOME TAX DEBT RELIEF SERVICES
INCOME TAX DEBT
Delinquent taxpayers are often looking for a reliable company that provides income tax debt relief services. The two most common tax problems that Taxpayers encounter are: First, failing to withhold enough federal income taxes and secondly, finding a manageable way to get out of the resulting tax debt.
What If I’m a Wage Employee?
The IRS requires all individuals who earn income in the United States to pay taxes on that income. If a taxpayer is a wage employee, her employer will withhold federal income taxes from her paycheck and send them to the IRS on her behalf. If the employer withheld more taxes than what was needed to pay the actual balance, as is generally the case, the Taxpayer will receive a refund when she files her return. When an employee incorrectly completes the form W-4 or claims too many exemptions, an employer may not withhold enough taxes to cover the balance owed according to the employee’s tax return, resulting in a balance owed.
What if I’m Self-Employed?
If you’re self-employed, you have a host of tax responsibilities to consider. Self-employed individuals are responsible for withholding their own federal income taxes; these individuals should pay their income taxes throughout the year by making estimated tax payments. Estimated tax payments are based off of the prior year’s taxes owed and can be made monthly or quarterly. If the Taxpayer does not make enough estimated payments during the year, he will owe a balance when he files his tax return and need to seek the assistance of income tax debt relief services to assist him in finding a resolution plan.
What are the Consequences of Not Filing a Tax Return?
It is always in your best interest to file a tax return, regardless of whether you can pay the amount owed or not. There are a wide range of consequences, including a failure to file penalty, a forfeit of your refund, and losses carried over into the next year, along with a bevy of other detrimental consequences. Although rare, unpaid taxes and unfiled returns could result in incarceration.
What are the Penalties for Unpaid Taxes?
Penalties add up the longer your debt remains unpaid. Your debt will accrue interest, typically half a percent of the amount owed. As time goes on, this can add up to a maximum of 25% interest on the amount owed. If a tax levy is issued and your debt remains unpaid, the penalty will increase to 1%.
What is a Tax Levy?
If you don’t settle your debt or come to an agreement with the IRS you may be subject to a tax levy, in which the government seizes your assets, including garnishing your wages and seizing your bank holdings. The IRS will send a series of letters before levying your assets, including a Notice of Intent to Levy.
Can I Settle My Debt for Less?
With the help of a tax professional, it is possible to pay less than the total amount you owe. There are various ways that this can be accomplished, including offer in compromise and declared uncollectible resolutions. There are strict regulations regarding these options, so it’s in your best interest to file with a professional’s help. If you owe an unmanageable amount of back taxes, talk to a tax professional at Community Tax Dallas and determine the best route for settling your debt for less.
The tax practitioners at Community Tax Dallas are experts in negotiating resolutions and providing income tax debt relief services. Whether it is a payment plan or a settlement, our practitioners use their proficiency and tax knowledge to scrutinize the details of your case, getting you the most advantageous resolution option available. Anyone can call the IRS and agree to a plan to address their tax issues. As authorities on tax law, our practitioners will get you the absolute most advantageous terms for addressing your income tax debt. Further, our practitioners will provide customized guidance and advice so that you can understand your unique tax needs and take measures to prevent future tax balances.
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