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In today's media, there is a lot of discussion about the student loan and mortgage crises but the issue of unpaid back taxes, sometimes referred to as tax debt, is a topic that receives little attention - despite affecting over 11.2 million Americans, according to a 2019 IRS report.Taxpayers who owe money to the IRS can face serious consequences if they do not pay their outstanding tax balance. Collection activity by the IRS can be intimidating and frightening for taxpayers, escalating in severity from tax liens to wage garnishments and ultimately property seizure to cover the balance owed. Using IRS data, Solvable & GoBankingRates tracked the enforcement & settlement activity on unpaid back taxes over 10 years from 2009 ...
It’s the responsibility of every taxpayer to fully understand personal tax liability and to pay what they owe to the Internal Revenue Services (IRS) in a timely manner. Failure to do so may result in significant penalties, fines, and other tax hardships. In this article, we’ll discuss the issue of lien versus levy, and show how these two unique tax penalties affect average citizens.After reading this guide, you’ll understand the main differences between liens and levies issued by the IRS. You’ll also be able to recognize the situations that warrant these penalties and foresee how to avoid them.
What is a Lien?
Legally speaking, a lien is any public record (filed officially with a local government office or clerk) ...
"Help! My bank froze my account!"
Usually, when we get a call at our office, the person on the line is in panic. Our typical response is to tell them not to worry.But in the case of a bank levy, we entirely understand the alarm. We understand how absolutely devastating a bank levy can be to financial stability and your mental health.So the first question we ask without wasting any time is: "When was the levy placed?"It is crucial to know the day the IRS placed the levy because, from that date, you have 21 days until your bank account will remain frozen. After the 21-day period is over, the IRS can remove those funds from your ...
If you can’t afford to pay your owed income tax amount, you might be feeling overwhelmed by the thought of fines and penalties. Fortunately, working with the Internal Revenue Service (IRS) to resolve your outstanding debts doesn’t have to be daunting or stressful. In this post, we’ll share some of the most popular IRS payment plans and how they can provide practical solutions for conquering your upcoming tax payments.
What is an IRS Payment Plan?
An IRS payment plan is similar to other types of payment plans that allow you to pay off an existing balance or outstanding debt over time, as opposed to paying a lump sum immediately. Payment plans are useful when you are short on cash assets ...
Case study reports are not necessarily representative of typical results that consumers may achieve. Individual results vary based on circumstances. Please read the important disclaimer at the end of this document.
Making the right phone call turned Nick’s life and finances around
“You’ve gotta help me! “They’re threatening to take my whole paycheck! I’m a truck driver and I can’t afford to pay them all that money right now!”With these words – and one very smart phone call – Nick set himself on a path that would preserve his livelihood and settle his tax debt.It was the evening of March 14, 2014. A night Nick will remember forever. He shut his P.O. box, hands trembling with anger and ...
https://www.youtube.com/watch?v=xjvL15vfvu4At FinCon19 we spoke to Jen from The Budget Bounce about her experience paying off her debt. Here's what she shared -We have paid off $42,000 so far, to the end of August. We paid off medical bills, we paid off auto loans, we paid off a few credit cards and in there, partial payments to a family loan, back child support. We have not paid anything on student loans yet, that is coming next year. We really were forced into it. We are the statistic of the family that had a lot of income but was not managing any of it. We did not have a budget for 9 years, and we were slowly moving towards the ...
https://www.youtube.com/watch?v=QWmSXer7wCgBernadette Joy of Crush This Debt sat down with Solvable to share her debt-free journey. Here's how she crushed $300,000 of debt -My husband and I have paid $300,000 in debt in 3 years. It was made up of a lot of stupid decisions. But if you’re asking money wise, it was $75,000 of student loans, when I decided to go back and get my MBA, and not one, but two, mortgages because I thought I was going to be the next HGTV star. Something I needed to get over was creating a new mindset around money. I actually grew up in a household with a father who was an accountant, a mother who was an accountant and ...
https://www.youtube.com/watch?v=cqmtwOE-L44Wendy Valencia took the time to speak with Solvable at FinCon19 about how she crushed her $200,000 in debt. Find out her strategies -To date we've paid over $200,000 worth of debt. My husband and I were never really behind on our debt, or anything but having that much debt really complicated our lives. We weren’t able to do the things we really wanted to do. We lived in the Washington DC suburbs and we wanted to buy a house and they’re over a million dollars in this area. We couldn’t do it because all of our money was tied in paying this bill or that bill so we decided it was time to just cut it off ...
https://www.youtube.com/watch?v=TT1RnNdrDoEWe spoke with Deshena Woodward of Extravagantly Broke at FinCon19 about her debt-free journey. Here's what she shared:I paid off my home, I paid off all my vehicles. I would sat in total, cause it’s been a series of a few years in total probably at least $150,000.00 dollars. I've had tax debt where I owed at least $5,000, which is not as much as some people, but it hurt me at the time because I was only working part - time. My husband worked, but we had a small kid and so I didn’t work a whole lot and then, all of a sudden we get hit with this tax bill out of nowhere on my already ...
If you work full time as a W-2 employee and file your taxes by April 15 every year as you’re supposed to, you probably never expect any trouble from the IRS.You pay your tax bill on time. Or maybe you even get a refund. Statistics say nearly 70 % of Americans did in 2019.Just like one Arizona resident, Guy.Guy had always gotten a modest tax refund. As a single male, he declared 0 dependents on his W-4 so the IRS would take out the maximum withholding taxes. “When my friends asked why I don’t declare '1' to take home more of my paycheck, I told them I didn’t want to owe at the end of the year,” ...
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Congrats! You're One Step Closer To Resolving Your Tax Debt.