Category Archives: IRS
When an individual is not paying taxes in accordance with the IRS tax laws, they use a program called penalty program. IRS tax penalties are placed on your account since you have not complied as per the rules of the IRS tax laws. The penalties are imposed so that you do not miss paying your taxes on time, according to proper filing procedures, and payment arrangements made. You can avoid paying penalties if you are filing your taxes properly.
- Tax penalties review
If you miss paying taxes, you will be charged penalty on your tax account for some of the following reasons.
- You pay a penalty when you do not file your tax return within the due date. This will include the extension period given to you for filing taxes. It is necessary that you comply with the IRS otherwise they will charge you failure-to-file penalty. It cannot be more than 25% of the amount of taxes that you owe.
- You are required to pay a penalty when you have missed paying the penalty on your tax return in the past. This penalty is usually within 25% of your unpaid tax. However, if you can provide a good reason regarding why you were not able to pay the tax on time, chances are that you do not have to pay this penalty.
- The frivolous return is when you have to pay a penalty because your tax return does not show enough information to figure the correct tax or a tax return. This penalty is usually in addition to any other penalty that might be assessed to your account.
- If someone is neglecting paying the tax return, they will have to pay such penalties.
- The IRS tax agent should receive correct information from you about your identity and other information related to your taxes. If you fail to do you, you will have to pay a penalty for it.
If you have missed filing your taxes without any proper reasons, you will have to pay a small penalty. The penalties may vary depending upon the charge and in some cases will result in imprisonment. Therefore its very important to file your taxes on time.
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It is a fact that millions of taxpayers in USA are losing millions of dollars to the government because of erroneously prepared tax returns. This is mainly because of the ignorance on their part, or because of the ignorance or negligence of the professionals they have paid to prepare their tax return.
This incidence of ignorance has increased to such a magnitude that the IRS is forced to take action. From 2013, anyone who prepares tax returns for a fee, unless he is an attorney, CPA or enrolled agency, they have to be certified by the IRS. They will have to pass an IRS competency examination and a background check, before the certificate is issued to them.
Preparing your own income taxes is not at all that difficult as your tax professional might want you to think it like. There are many advanced tax preparation softwares available that has made preparing taxes so easy. You do not need any knowledge of tax laws to understand the process. This holds particularly true with the Turbo Tax Home and Business Tax preparation software, which has now gotten much better in the recent times. As it is not that expensive, it is virtually just as easy and effective to use this tax software as it will be used by a professional tax preparer.
There are many benefits of preparing taxes on your own. You do not need to disclose your sensitive personal information to any other person. It will reduce the risk of your personal information being compromised. Your never know how much your personal information is safe after leaving from the doorstep of your tax preparer. The IRS has found a huge increase in taxpayer identity theft in the last couple of years. That’s why they are always advising to consult with honest tax accountants with whom your personal information is safe and secure.
You can actually save a lot of money when you prepare your taxes on your own. Hiring an accountant can be quite costly and tax preparation fees can range from $300 and upwards for an average tax return with a Schedule A. When you file taxes on your own, you will have full control over it. You can take as much time to prepare your own taxes and do your own research to ensure optimum results.
It will also motivate you to look at your own finances and as you immerse yourself in the process, you gain more knowledge about tax matters and money management issues.
Its always a nice feeling when you are near to your payday. And furthermore, it can be exciting enough when you have some extra cash left over after paying off your debts. You read the check and it is actually a portion of exactly what it usually is. You figure out that the IRS has put a wage garnishment against your income. To make it even more worse, its costing you more than half of your pay check.
All your good moments suddenly come to an end. The IRS is garnishing your wages and it looks severe and worse. You are in deep shock and don’t know what to do next. Managing your general expenses now seems like a big burden on your shoulder. Your fixed income can be garnished, no matter you are on social security or disability.
When the IRS gets involved, they will put their hands on every source of income that you are receiving. You cannot escape from the eyes of the IRS. The damages of IRS tax levy is always a big one. At this time, everything appears extremely dismal.
Do not give up hope. There is always light at the end of the tunnel. There are ways by which you can remove an IRS wage garnishment. Although there are some stipulations, they are much more advantageous compared to continuous loss on 1/2 of your salary each week. Follow the steps mentioned below to remove a wage garnishment.
If you have received a wage garnishment from the IRS, it is advised that you talk about a pay out with them. You can take the help of a tax specialist skilled in IRS tax levy issues and tax debt settlement. While you are discussing the terms with the IRS, recovery routines are usually put on hold until you find a solution. You are required to meet the terms of the negotiation agreement otherwise you will be in the danger area.
Talk with the IRS and get on a repayment schedule. You shell out a certain amount to the IRS every month. As long as you are making the payments, your IRS wage garnishment is going to be removed. The IRS will decide what the settlement amount is going to be.
Be proactive in order to avoid grievous tax issues before they start. IRS Collections processes like a wage garnishment are inconceivable to annul if you owe the IRS. You must talk with the Instant Tax Solutions to resolve your grave tax problems.