The Rules For Discharging Tax Debt Through Chapter 7 Personal Bankruptcy

Discharging Tax Debt Through Chapter 7 Part 2 of 3 When it comes to discharging tax debt through personal bankruptcy, the Internal Revenue Service is very specific about which type of back taxes may be discharged.  In October 2005, Congress enacted the Consumer Bankruptcy Law.  Referred to as the "new bankruptcy law", the updated rules make it more difficult for taxpayers to file bankruptcy under Chapter 7 and to discharge tax debt.  If they qualify, taxpayers need to know when they may discharge tax debt through a personal bankruptcy as the rules are very specific. Discharging Tax Debt [...]

According To The Wall Street Journal, 57% of Americans Complain About High Income Taxes

Many Americans believe that high income taxes are a big problem in this country.  The Wall Street Journal reported on a recent Gallup poll that revealed 57% Americans think their own Federal income tax bills are too high.  Up from 51% last year, this is the highest level since 2001.  To further support these numbers, the Tax Policy Center reported that only 55.5% of American households will pay Federal income taxes in 2016.  As a result, the IRS is coming after delinquent taxpayers. High Income Taxes = Delinquent Taxpayers The Burden of High Income Taxes Although the earned-income [...]

What To Do About Unfiled IRS Tax Returns And Unpaid Income Taxes (Part 2 – IRS Tax Liens)

If your account has been red flagged by the IRS with regard to unfiled tax returns or unpaid tax liability, you can expect collection action against you to occur quickly.  Collection typically begins with notices requesting delinquent returns be filed or unpaid income tax be paid.  The IRS encourages taxpayers to file returns and pay delinquent liabilities on a voluntary basis.  If this is not done, they more surely will us a "call to action" to get your attention. Unpaid Income Tax = IRS Collection Action If you are in the midst of receiving the chain of IRS letters the [...]

What To Do About Unfiled IRS Tax Returns And Unpaid Income Taxes (Part 1 – The Initial Assessment)

If you have unfiled IRS tax returns and unpaid income taxes, the Internal Revenue Service will be contacting you. Given the evolution in IRS technology and their computerized capabilities, it is no longer typical to have the luxury of time waiting for an IRS Revenue Officer tracking you down.  Rather it is a faceless computer "picking up your scent" and in short order, comes "knocking at your door".   It is important to know that most common reasons the IRS comes after you is for unfiled tax returns and unpaid income taxes.  In this two-part article, the Tax Resolution Institute will [...]

Three Strategies You Need to Know to Abate IRS Penalties Stemming from Back Taxes and Unfiled Tax Returns (Part 2)

Penalty Abatement Strategies Be diligent in doing what you can...even if that means not paying your taxes Get your facts in order and keep your story straight Be organized and provide complete and accurate supporting documentation   In the second part of this two-part article, the Tax Resolution Institute provides taxpayers with insight into IRS penalty abatement and the best strategies to obtain a favorable outcome.  In the first part, we pointed out the importance of being diligent with the IRS.  If you are not complete and honest with the IRS when trying to obtain a desirable outcome, odds indicate [...]

Three Strategies You Need to Know to Abate IRS Penalties Stemming from Back Taxes and Unfiled Tax Returns (Part 1)

What is IRS penalty abatement? If you think the IRS has or is going to penalize you for back taxes owed or not filing tax returns, you need to know about IRS penalty abatement. It could be the answer you need to protect your financial future.  In this two-part article, the Tax Resolution Institute explains what penalty abatement is and offers three strategies that can significantly reduce and possibly eliminate the penalties assessed based upon IRS back taxes or unfiled tax returns. […]

4 Common Mistakes That Small Business Owners Make

The Tax Resolution Institute works with countless business owners helping to resolve their tax problems.  These issues can range from something as simple as failing to file a tax return to being help personally responsible for failing to make the company’s IRS payroll tax deposits.  Most business owners with tax problems understand that these issues come  more than one at a time.  Keep reading to finding out what mistakes many business owners make that lead to tax problems… […]

IRS Rules For Auditing Taxpayers Expanded

Thanks to a bill passed by Congress in 2015, the rules relating to how the IRS may audit taxpayers have been significantly expanded. The basic rule has long been that for most cases, the IRS has up to three years to audit a tax return after the filing date.  Like EVERYTHING else, there are exceptions to this rule.  The most common exceptions involve cases where a taxpayer failed to include more than 25 percent of their income.  In these cases (defined as "tax evasion"), the IRS is allowed up to six years to perform an audit. Congress wielded more power [...]

Taxpayers Have Rights When Dealing With The IRS

Did you know that taxpayers have rights when dealing with the IRS? As you may well imagine, it is almost as difficult to navigate your rights as it is to resolve your tax problem. By working with someone who knows the full extend of your rights as well as the administrative limitations of the IRS, you can successfully navigate the IRS collections maze.  After all, even the United States taxpayer advocate Nina E. Olson stated, “...at their core, taxpayer rights are human rights.” Yes, Taxpayers Have Rights! According to both the taxpayer advocate and the IRS, taxpayers have rights and [...]

Did the IRS File a Tax Lien?…You Need Help

Do you know about the danger of IRS tax liens and the tax collection actions that can come as a result? As income tax filing season rapidly approaches and you are asking yourself whether or not you are going to pay what you owe to the IRS, the Tax Resolution Institute believes you should know about this looming danger. If you have a delinquent income tax debt and you have ignored notices from the IRS, an IRS Revenue Officer will file a tax lien to protect the government’s interest on the amount of taxes being owed. […]