Learning that you have tax debt can be unwelcome financial news, especially if you didn’t account for additional tax payments in your budget.
Though you’re legally obligated to settle back taxes that are legitimately owed, there are cost-effective payment methods you can use to settle IRS tax debt. Here are some of the most popular payment options to consider for tax debt relief, and the pros and cons of each.
Being the subject of any tax audit can be stressful, but the intensity magnifies when an audit involves the Internal Revenue Service. Here are a few tips to help you deal with an IRS audit as efficiently and affordably as possible.
Understand why you’re part of an IRS audit. The IRS uses a computer system to “flag” certain tax returns for audit. Taxpayers with taxable income of more than $200,000, those who are self-employed and file a tax return with significant claimed business expenses relative to reported income, or those who claim high charitable contributions relative to income may be “high-risk” for an IRS audit, according to experts at the Society of Grownups.
Jeffrey: Hi. I’m Jeffrey Schneider, and I’m an enrolled agent, and this is We Got Your Back…Taxes. Today we have Steven Klitzner. He’s an attorney who specializes in what we call alternative collection issues. He basically helps you get out of problems with the IRS. So today we’re going to talk about the different statutes that are out there. There’s 3, 6, unlimited, 10-year, and everybody thinks they’re something different. So let’s talk about the three-year statute first.
Jeffrey: Hi. I’m Jeffrey Schneider, and I am enrolled agent and this is We’ve Got Your Back…Taxes. I welcome back a previous guest, Steven Klitzner. He’s an attorney here in South Florida who deals with alternative collection issues and IRS problems. So he’s the type of person you go to when you have real issues.
In our last segment, we just talked about the different statute of limitations and the three years, six years and so on. We mentioned substitute for returns. We talked about how the IRS, if they have information returns, they’ll file a return for you. But why is that really so bad, other than cost base as we mention about stocks? Why is that really bad?
Taxpayers get slightly more time to file their 2015 taxes than they have in previous years, with a tax deadline of April 18, 2016 for all taxpayers — except those who reside in Maine and Massachusetts. (Their deadline is April 19, 2016, due to Patriot’s Day.)
However, the filing deadline isn’t the only change taxpayers should be aware of in the 2016 tax season. Here are some changes to know before filing taxes for 2015.
You know what they say about death and taxes — they’re the only two things inevitable in life. Though at least when death comes, you no longer have to worry about the headache that comes from taxes.
All kidding aside, taxes have the potential to become a major headache. In fact, if they’re not done correctly or if the IRS finds out that you underpay or own back taxes, you could be socked with up to a 20 percent interest penalty. Late returns, hiding property, or gifts and tax fraud are also most certainly issues that can lead to IRS problems. Yet what do you do if you’re filing your 2015 taxes, discover that you owe money, but don’t have the adequate funds to pay the IRS the money owed? This post will take a closer look at your options:
I’m tax attorney Steve Klitzner. I help individuals and businesses that have IRS problems. You know, I think the biggest fear that my prospective clients have, when they call me for the first time or when they visit me for the first time, is, “Do I have to talk to the IRS?” The answer is, “Not if I represent you.”
You see, if I have a power of attorney, I stand in your shoes. The IRS has to go through me. And as long as I can answer all their questions on your behalf, they’re not allowed to talk to you. This is a big advantage to having someone represent you for your IRS problems, because, not that we’re ever not going to tell the IRS the truth, it’s pretty scary, though, talking to those people.
So if you have any problems with the IRS, feel free to give me a call. We can talk on the phone, we can meet in person. The consultation’s free. I’m tax attorney Steve Klitzner. Until next time.
I’m tax attorney Steve Klitzner, and almost every day I speak to someone that I haven’t spoken to before about their IRS problem. Very often they ask me the question, “How long have you been doing this work? Have you always represented folks with IRS problems?”
Well, the answer is no. Many years ago, when I first became a lawyer, I was a trial attorney. I represented individuals who got hurt, personal injury claims, and I could recover money for them, compensation for their injuries. But there was one thing missing. I couldn’t really make them better. Now, I can make a difference.
Ever since, way back at the turn of the century, in the year 2000, that I started representing folks with IRS problems, I’ve been able to make a difference in people’s lives, end their IRS problems, have them not be looking over their shoulder their whole life and get back to living a good life and enjoying themselves.
If you have any questions, if I can help you, give me a call. The consultation’s always free. Until next time, I’m tax attorney Steve Klitzner.
I’m tax attorney Steve Klitzner. I help people with IRS problems. Folks come to me all the time with unfiled returns. You know, I’d estimate about 85% of the people that I see have at least one unfiled return. And they ask the same question, “How am I going to know how to file a return? I have no idea how much money I earned in those years.”
Well fortunately, I can go ahead, order the transcripts from the IRS with my Power of Attorney, and find out through the wage and income transcripts exactly how much money was reported to the IRS that you earned in those years. With those numbers, I can start getting together tax returns for you, so that we can send them into the IRS and begin the process of ending the IRS problems, because here’s something a lot of people don’t know. If you don’t file the returns, the IRS may file them for you, and they’re not very good at doing tax returns. They don’t give you the deductions you’re entitled to. They’re not going to give you the exemptions you’re entitled to. Very often, it will cost you a lot more money to have the IRS do the work that we can get done for you.
If you have any questions on this, give me a call. Consultation is free. Until next time, I’m tax attorney Steve Klitzner.
I’m tax attorney Steve Klitzner. When I meet with a new prospective client, after we talk for a little while and I go over some of the options, I very often hear this question: Is this going to go on forever? How long can the IRS collect for?
Well, the good news is there’s a statute of limitations. The IRS has to collect the money within 10 years of when they assess it against you, or it’s done. You don’t owe any money. Now the IRS can, and very seldom does, file a lawsuit to perfect their judgment, and then they can collect another 20 years. But for the most part, 10 years is the period of time.
There are some things that can be done, whether intentional or unintentional, that can extend that period of time. But once that statute of limitations is over, the taxpayer is free of any IRS obligations.
One of the things I do when I meet with somebody is I get the transcripts right away. I do a calculation, and I can tell you to the day when the IRS problems go away.
I’m tax attorney Steve Klitzner. Until next time, if you have any questions, please give me a call.
I’m tax attorney Steve Klitzner, and I represent people in businesses with IRS problem. Here’s a question I get often. “Can I discharge my taxes in bankruptcy?”
You may be able to. If it’s individual 1040 income tax and the returns are due more than 3 years ago and have been filed for at least 2 years, you might be eligible to have your taxes discharged in bankruptcy. What we do on these type of cases is the very first thing is I get the transcripts from the IRS. I can run an analysis to tell you whether or not your taxes are dischargeable. If they are, bankruptcy might be the best way to go. If not, there are other programs available that we can help you with.
I’m tax attorney Steve Klitzner. If you have any other questions on this subject, give me a call. Consultation is free.
Give us a call. The consultation with me, personally, is always free. Till next time, I’m tax attorney Steve Klitzner.
I’m tax attorney Steve Klitzner. I represent individuals and businesses that have IRS problems. One of my favorite questions I hear from friends, family, clients, prospective clients is, “We see those ads on TV about IRS problems. Are those for real?”
Well, yes, they are. But a lot of times, no, they’re not. You see, if you get those commercials and you put them on your DVR and you freeze the last frame — try to get it into focus, because very often it’s out of focus — you’ll see that only people who qualify for the offer and compromise program can settle their cases for less. Some people can settle a $100,000 debt for as low as $100. Others may owe $50,000 and they can’t settle it for a penny less.
Every case is different. If you qualify, you could really end your IRS problems forever.
I’m tax attorney Steve Klitzner. As always, if you have any questions, give me a call. The consultation is always free.
I’m tax attorney Steve Klitzner. It’s my job to protect folks with IRS problems and to exercise their rights. Now a question that is often asked of me is, “What is a federal tax lien?” Part two to the question is, “How do I get rid of it?”
Well, first of all, a federal tax lien is what the IRS files in the county where you live that’ll protect their interest. If you have any assets or any property, it’ll attach to that property. It’ll also mess up your credit pretty good. Sometimes it can lower it by 75 to 100 points.
As tax season quickly approaches, many households across the country are beginning to gather up their relevant documents and plan their deductions. Filing taxes each year can be stressful. Errors can result in hefty penalties from the IRS and failing to properly document all deductions can cause people to have a much higher tax bill than they should. Here are the top ten tips to help people avoid making errors this year on their tax returns.
Those who know that they are going to be in the same or a lower tax bracket next year should consider delaying income, such as bonuses, until January to avoid extra taxes at least for this year
Tax season is fast approaching, and so is the dread that goes along with it. While the tax code may seem like an endless collection of complicated regulations, lengthy forms, and confusing deadline, getting through tax season can actually be quite easy. All you need to do is carefully and methodically tackle each step of the process before moving on to the next step.
While you can start planning for tax season in December or January, you won’t be able to come up with more than a rough estimate until February. This is because employers have until January 31st to issue the forms that state your final income — W-2s for salaried employees and 1099s for independent contractors. Until then, you may want to start gathering your receipts for charitable donations, business expenses, and any other deductions you plan to claim.
With tax season upon us and the government shut down looming in the rear view mirror, it may seem that tax payers are in for another surprise. With the 2014 tax season it is now more important than ever that tax payers be ready to face the changes and understand how they affect their own taxes.
Those small business owners are going to be hardest hit when taxes come around. One change that has the most buzz is of course the increase in tax rate for the top federal wage. The top rate has made a drastic jump from 35% all the way up to nearly 40% hovering around 39.6%. This could be a huge increase for some business owners. Those that make $400,000 as an individual and those that make $450,000 as a married couple will be taxed at the highest rate possible while those in the lower bracket may still be affected by the change. On top of the rate increase, small business owners will also have to contend with an upturn on the capital gains rate as well if they fall into the highest of the tax brackets. The rate has increased from 15% to 20%. Even more, some business owners may also have to contend with a new Medicare tax that could leave them reeling.
The United States Supreme Court refused to hear a case brought by Amazon and Overstock.com challenging a 2008 New York law requiring online retailers to collect sales tax on purchases by New York State residents. The online retailers had argued that given the number of local jurisdictions with different sales tax rates, the law was overly complicated, unduly burdensome, and restricted the growth of online commerce. The law was upheld by New York’s highest court before the challenge was brought to the Supreme Court.
New York’s ruling went beyond a 1992 U.S. Supreme Court ruling requiring online retailers to collect sales tax in states where they have a physical presence. Under that rule, a retailer needed to have a physical store or office in a state to be required to collect sales tax. New York’s law included marketing efforts directed at a state and used affiliate marketing as a basis for establishing the company’s presence in a state.
If you’ve never been through an IRS tax audit, you probably have some common misconceptions about what actually triggers an audit. Ask ten people what they think would cause an IRS audit and you would probably get ten different answers. Therefore, we thought we would take a few minutes to clear up a few common myths and misconceptions about what does and does not trigger an IRS audit.
The process in which the IRS determines which returns should be audited has nothing to do with the way you chose to file your return. E-filing could actually reduce the chances that your return will be audited due to the fact that electronically filed returns are usually more accurate; therefore, if you e-file, your tax return is less likely to trigger an IRS audit.