Don’t Panic: Tax Resolution Firms Can Help with IRS Tax Debt


by Andrea Miller on December 11, 2019  0 Comment

Don’t Panic: Tax Resolution Firms Can Help with IRS Tax Debt
If you owe unpaid back taxes to the IRS, tax resolution firms can help you negotiate a settlement or a payment plan that makes your IRS tax debt more affordable. These firms are typically run by tax attorneys or certified public accountants (CPAs) who have the knowledge, experience, and authority to work with federal and state tax authorities on your behalf. Services Provided by IRS Tax Debt Resolution Firms Tax resolution firms work with individuals and businesses to resolve complicated tax issues. They provide a range of services which typically include: Negotiating penalty abatement, in which associated penalties are removed from your past-due tax balance. This is significant since these penalties can add as much as 25 percent to your ...

(8 Best Tips) What Compelling IRS Tax Debt Relief Programs Can Help You?


by Andrea Miller on November 30, 2019  0 Comment

(8 Best Tips) What Compelling IRS Tax Debt Relief Programs Can Help You?
For one reason or another, many of us may find ourselves in tax debt to the IRS at some point in our lives. Whether it's through forgetfulness, miscalculations when you file your taxes, a major life event, lack of knowledge, or any number of other reasons, sometimes this tax debt gets so high that it can drastically change your life for the worse. Luckily, there are many ways to take your IRS tax debt by the horns and improve your financial situation. Being in tax debt is not uncommon. It happens to many people. In fact, 17% of federal taxes are not paid every year and collectively, citizens owe the IRS $114.2 billion in back taxes. Being in tax debt to the ...

How To Handle Contact From a Debt Collector


by Andrea Miller on May 24, 2019  0 Comment

How To Handle Contact From a Debt Collector
Debt collectors act to collect unpaid debts on behalf of creditors, including student loan, mortgage, and credit card companies. The federal government has established laws about how and when debt collectors can contact you. You have legal recourse if a debt collector violates these laws, but this does not impact your responsibility to repay a legitimate debt. A debt collector is an agency or attorney hired by creditors to attempt to collect past-due debts. If you have credit card debt or other types of debt you cannot afford to pay, you will eventually receive phone calls or letters from a debt collector. Debt collectors must adhere to guidelines established by the Federal Trade Commission (FTC). The agency enforces the Fair Debt ...

Can You Benefit From Debt Counseling?


by Andrea Miller on May 24, 2019  0 Comment

Can You Benefit From Debt Counseling?
Debt counseling encompasses a range of services, including but not limited to budgeting assistance and debt consolidation. You should thoroughly research a debt counselor before providing personal information or paying a fee for services. Some counselors will help you enroll in a debt management plan, which often involves negotiating for lower payments but may damage your credit score. Debt counseling is designed to help those who are struggling with debt they cannot repay. With this service, an individual with experience in debt counseling will help you prioritize your bills and help you make a budget and plan to repay the debt. He or she can also advise on the best next steps to take if you don't have any disposable ...

What Is a Debt Validation Letter?


by Andrea Miller on May 24, 2019  0 Comment

What Is a Debt Validation Letter?
Debt collectors are required to send a debt validation letter with details about the debt in question within five days of initially contacting you. You have 30 days to follow up with a verification letter that requests additional information. If the debt is invalid, you can take steps to dispute the debt with the three credit bureaus. A debt validation letter outlines information about a debt you supposedly owe. It includes details about when the debt was accrued, the total amount, where the funds came from, and other details. Creditors are legally required to provide this letter when attempting to collect a debt. This gives the person an opportunity to challenge invalid debts by sending a verification letter. If you ...

What’s a Tax Attorney? Here’s Why You Might Need to Know


by Andrea Miller on April 02, 2019  0 Comment

What’s a Tax Attorney? Here’s Why You Might Need to Know
A tax attorney is a lawyer who has specialized training in the extensive U.S. tax code. in addition to the Juris Doctorate (J.D.) degree that all American attorneys earn, tax attorneys may also obtain a master's degree in tax law and/or have a background as a certified public accountant (CPA). If you have tax issues that relate to legal matters and/or are very complex, a tax attorney can advocate on your behalf. The Role of a Tax Attorney This type of lawyer is an expert in the laws and policies about taxation, including IRS guidelines and procedures as well as local, state, and federal laws that affect tax liability. They are knowledgeable about how these tax laws impact many aspects of life ...

Consolidate Credit Card Debt With Bad Credit


by Andrea Miller on April 02, 2019  0 Comment

Consolidate Credit Card Debt With Bad Credit
Consolidating your credit card debt is the process of taking out a new loan at a lower interest rate and using it to pay off your existing credit cards. Although this can help you pay off your debt more quickly and at a lower overall cost, it can be difficult to be approved for a consolidation loan if your credit is poor. Here's what you need to know about consolidating your credit card debt if you have bad credit. Credit Card Balance Transfers Transferring your existing credit card debt to a new card with a 0% interest rate is one of the most common ways to get ahead of high-interest debt. However, this strategy can backfire if you continue to ...

What to Do if You Receive a Cancellation of Debt Form


by Andrea Miller on April 02, 2019  0 Comment

What to Do if You Receive a Cancellation of Debt Form
Cancellation of debt form refers to IRS Form 1099-C, which will be filed by a creditor that agrees to forgive all or a portion of your debt. Under most circumstances, the amount forgiven must be reported as income for the year in question. What Is Cancellation of Debt? If you can no longer pay your bills, you may be able to negotiate a debt cancellation agreement with your lender. However, because you received and used the loan or credit card amount but did not pay the money back, it is considered free income by the IRS and thus must be taxed as such. When Is Canceled Debt Taxed? Common situations in which you will receive a 1099-C form from the ...

Living in States Without State Income Tax: The Economic Benefits and Drawbacks


by Andrea Miller on April 02, 2019  0 Comment

Living in States Without State Income Tax: The Economic Benefits and Drawbacks
States without state income tax are those that do not charge income tax on individual and business income earned from state sources. Although residents and businesses housed in these seven states must still pay income taxes at the federal level, they are free from state income tax, which may represent significant savings. Two additional states tax only income from dividends and other investments. Although avoiding state income tax may seem appealing, it's important to weigh all the factors, since these states often make up income tax revenue by charging higher taxes in other areas. States Without State Income Tax Not only have Alaska residents and businesses been free of state income tax since 1980, but the state also does not ...

What Taxpayers Need to Know About IRS Interest Rates


by Andrea Miller on April 02, 2019  0 Comment

What Taxpayers Need to Know About IRS Interest Rates
An interest rate is charged on past-due IRS debt, including both balances and penalties. The interest rate is tied to rates set by the Federal Reserve. The current rate for individuals is 5%, which is compounded daily and assessed quarterly. Rates are likely to increase in 2019. The only way to avoid paying interest on your IRS debt is to pay taxes when they are due. Avoiding penalties can minimize the amount of interest assessed. IRS interest rates increased as of April 1, 2018. If you are making installment payments on a past-due tax balance, these new rates were assessed on a quarterly basis, beginning the second quarter of this year. What Are the New Interest Rates? IRS interest rates ...

You may also like