- Will the IRS garnish the taxpayer’s wages without giving her notice first?
- Will the taxpayer’s spouse be liable for her taxes that were accumulated before they married?
- Why does the taxpayer have to make estimated quarterly payments for tax?
- Who and what is the automated collection service of the IRS?
- If the taxpayer’s spouse owes any back taxes from before her marriage, can and will the IRS take her tax refunds each year?
- Will the IRS hold the taxpayer responsible for any payroll taxes left unpaid?
- How long can the IRS continue to get back taxes from the taxpayer?
- How much do our services cost?
- How do I determine the value of my vehicle and home?
1. Will the IRS garnish the taxpayer’s wages without giving her notice first?
The IRS has the power to take actions that are extreme against the taxpayer to collect any due or past due back taxes. The IRS can garnish the taxpayer’s wages because of this. The IRS must send the taxpayer a final notice and wait 45 days. After 45 days, the IRS can start a collection against the taxpayer. The IRS must send one final notice, so it is important for the taxpayer to act as soon as she receives it. The taxpayer may be taken back when she realizes that her wages have been garnished. The IRS can let years go by before acting on the garnishment.
2. Will the taxpayer’s spouse be liable for her taxes that were accumulated before they married?
No. If the taxpayer has an IRS tax liability from before her marriage, the spouse of the taxpayer is not liable for those taxes. However, the IRS may ask for financial information for the married couple that will include her spouse’s details and general income and expenses. Even though the taxpayer’s spouse is not liable, her partner’s information will be taken into account when working out a payment with the IRS.
3. Why does the taxpayer have to make estimated quarterly payments for tax?
Most taxpayers are required to pay taxes on their earnings every year. If the taxpayer has a job from which she earns a weekly or monthly wage, her employer will do this for her. However, if the taxpayer is self-employed, she will have to do it herself. If the taxpayer is self-employed, she needs to make estimated payments four times each year. If the taxpayer decides to pay her taxes when her return is due in April, she will face fines of not meeting the schedule of the four quarterly payments. The taxpayer will probably find it easier to pay four smaller amounts rather than one lump sum.
If the taxpayer has a general history of not being able to make payments, the IRS will more than likely demand that she pay the estimated payments. It is in the taxpayer’s best interests to make the four quarterly payments.
4. Who and what is the Automated Collection Service of the IRS?
The ACS is a division of the IRS that focuses on the accounts that are “balance due” and the “non filer cases.” If the taxpayer owes any money to the IRS and/or she has failed to file her tax returns, the ACS will enforce collection actions. They handle outgoing and incoming telephone calls, start wage garnishments and the bank levies, and also send out final notices to the taxpayer. The ACS has been known to be extremely aggressive when collecting.
5. If the taxpayer’s spouse owes any back taxes from before her marriage, can and will the IRS take her tax refunds each year?
No. The IRS has a procedure for taxpayers to follow which will ensure that a portion of the tax refund is given to her, even though her spouse owes IRS back taxes. If the taxpayer wants to use the “Injured Spouse Relief” that the IRS offers, we can assist her with that process. For the taxpayer to be able to take advantage of this process, she must meet the following conditions:
- The taxpayer must not be legally obligated to pay back any of the back taxes.
- The taxpayer must report all of her income (such as wages and interest that is taxable) on the joint tax return.
- The taxpayer has to have made payments that are reported, such as any tax held from her wages or her estimated tax payments.
Or, the taxpayer must also have claimed the income credit or any other forms of refundable credits on the joint tax return she sent to the IRS.
If the Injured Spouse Relief strategy is not used by the taxpayer, the IRS will probably keep the refund to pay back her spouse’s taxes that are owed.
6. Will the IRS hold the taxpayer responsible for any payroll taxes left unpaid?
Yes. If the taxpayer works for someone who has not filed or if she does not file or pay any of the payroll taxes, there can be serious consequences. If the taxpayer’s employer does not file or pay the payroll taxes, the IRS can collect these outstanding taxes from the actual business or even from staff or former staff members who did not pay the payroll taxes.
If the taxpayer works for a corporation that does not pay the payroll taxes or withholds them, then the IRS can seek to collect the payments from the employee. To do this successfully, the IRS will hold interviews with various members of the organization to see who will be held responsible for the Trust Fund recovery penalty. A person cannot be held responsible for the corporation’s taxes until this has been done. This will then, be calculated and the amount due will be equal to the tax amount that the corporation withheld or should have withheld from the taxpayer’s wages.
If the taxpayer has or had any authority to sign wage checks or the authority to run the business when the owners are or were not there, she could face liability for the tax payments left unpaid.
7. How long can the IRS continue to get back taxes from the taxpayer?
The IRS has at least 10 years to collect any back taxes that the taxpayer owes. There is a statute of limitations on certain collections and that that limits the time of when they have to collect the full amount. The statute of limitations will more than likely start from the date that her case was assessed by the IRS.
There are certain ways and events that can cause the IRS to have longer than 10 years to collect. If the taxpayer files for bankruptcy or she files an Offer in Compromise, the statute of limitation is suspended for the amount of time that the review takes place. Other tax assessments in a tax audit can cause the taxpayer’s statutes of limitations to be suspended.
8. How much do our services cost?
If a taxpayer is worried that she will not be able to afford our services she is wrong. Our fees are extremely competitive and affordable as we want to help the taxpayer with her taxes. We know that the taxpayer is already under financial worries and stress and we do not to want to make it any worse for her. She can pay for our fees over time rather than all at once, allowing her some financial freedom and flexibility.
9. How do I determine the value of my vehicle and home?
For a successful resolution of back taxes, the taxpayer generally must receive an analysis of her income and her expenses and then, a valuation of her assets. The IRS will require her to provide the value and perhaps supporting documentation of the value of her assets. The taxpayer must be able to provide paycheck wage stubs, income statements, bank statements, bills, and any property appraisals.
Below are a few online organizations that will help determine the values and figures requested by the IRS.
- Kelly Blue Book – This company will provide the taxpayer with vehicle valuations.
- Edmunds – This company will also provide the taxpayer with vehicle valuations.
- Social Security Administration – They manage the taxpayer’s Social Security benefits.
- Zillow – Here, the taxpayer will get an immediate property valuation for her home.
