Posted by LWM Team on Wed, Jun 02, 2010
The Internal Revenue Service does not overlook taxes owed by a business/ home business that closed its door. Even if the business has not been operating for several years it will not be free from the expectations of the Internal Revenue Service. You can be sure the Internal Revenue Service will make every effort to collect employment taxes and officers of that business will be held responsible. However, if the business closed down in a proper manner by following the correct tax procedures and none of its assets got transferred to third parties in order to continue operating in a fraudulent fashion it will be regarded as not collectible. In such an instance any Internal Revenue Service tax notices are being automatically produced by a computerized procedure.
A business that is regarded as truly not collectible will not have the attention of the Internal Revenue Service. The Internal Revenue Service can pursue any of those who made the decisions not to pay employment taxes to the Internal Revenue Service. They would be under the impression that officers of the business are liable to a lesser or greater degree. A penalty for trust fund recovery would have been evaluated by the Internal Revenue Service against officers responsible for the employment taxes withheld from workers’ salaries.
A business that is correctly closed and is not collectible will not be pursued by the Internal Revenue Service. As there are no assets, they will go after officers, owners and managers due to their personal liability. This is known as ‘joint’ and ‘several liability’. If the collection of one hundred percent by the Internal Revenue Service is from another person you no longer have a obligation to pay. The collection can be carried out in any way the Internal Revenue Service decides is best but may not be more than one hundred percent of what is owed.
According to the IRS Taxpayer Advocate 2002 to 2007, trust fund assessments amounting to 13.5% was carried out against owners, officers and managers. The Internal Revenue Service is not excessive in their pursuance of closed businesses.
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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.