Posted by LWM Team on Thu, Jul 15, 2010
It’s not unheard of for taxpayers to fail to remember to file for their taxes. There are individuals who genuinely find the filing of their taxes slips their mind. If this does happen it is advisable to take action as soon as you can. The sooner you make it right with the Internal Revenue Service, the sooner your outstanding tax bill will stop increasing in both interest and penalties.
A common situation for certain individuals is they discover they are without a W-2s or 1099s relating to the years that are unrecorded. This is a situation that is the start of a number of problems if not sorted out in the correct manner. The reason it will be picked up by the Internal Revenue Service is because there is a procedure for corresponding the earnings in the IRS account with the earnings on the tax return. One effective method of making sure your return is correct is to take the data straight from the Internal Revenue Service. Use the IRS data to put together your tax return.
If you want to achieve an amicable relationship with the Internal Revenue Service in order to bring about a favorable outcome regarding an unresolved tax problem, you may want to consider the services of a tax professional. This is most important because if you don’t go about correcting your tax problem in an appropriate manner you could be faced with prison.
If you are one of the taxpayers who forgot to file the only way to get out of this serious situation is to make contact with the Internal Revenue Service and convince them you are doing everything that is expected of you. Make sure they understand you take your oversight very seriously. The Internal Revenue Service would prefer to work with you to get the money owed as soon as possible.
Posted by LWM Team on Thu, Feb 25, 2010
Many people will find themselves in a position at some time in their lives when they owe the IRS back taxes. It's easy to ignore this and hope it will simply go away but it won't. If you haven't made any kind of agreements with the IRS, chances are you'll end up with a wage garnishment. A wage garnishment is when they take a percentage (25% usually) before you get your paycheck. The first time this happens, you'll be very unhappy, especially if all of your utility bills are due. A wage garnishment release can help you remain in a stable financial position.
To get a wage garnishment release, you'll have to provide a good reason for it to the IRS. A good example is if you made $3000 per month before the garnishment, afterwards you only made $2250, and you have monthly bills totaling $2500. Obviously, the IRS will realize this isn't going to work and may lead to you having to sell your property. They don't want that to happen and will usually authorize the wage garnishment release if you comply with a payment plan.
Before you start this process you will want to get all needed documents in order and these are: Paycheck stubs, bank statements, bills, property appraisals, and proof of other types of income such as child support, worker's compensation, and other income types. The more you provide, the better your chances.
Using a service or tax attorney is the best way to get a wage garnishment release. They will not charge you an arm and a leg because they are trying to get you tax relief and understand the burden you already have financially. The Internet is a great resource to find a service that will do this for competitive prices.