Sunday, May 22, 2022

FAILING TO PAY PAYROLL TAXES FOR YOUR BUSINESS?

If you pay people to work for you, you are required to collect and pay payroll taxes. The IRS receives 70% of its annual revenue from payroll taxes, but 18% of the tax gap is due to unpaid or unreported payroll taxes. This tends to upset the IRS.

What if you're part of that 18%? That's what this post is about. You can make this right, but like unpaid income taxes, unpaid payroll taxes incur penalties and interest. 

 

Defining Payroll Taxes

The term payroll tax covers a little ground. In general, it means all employment taxes applying to your business. Those taxes can include:

 

Income taxes

FICA taxes

Unemployment taxes

Other taxes - state and local

FICA includes Social Security and Medicare withholdings while income tax is withheld according to your employee’s W-4. Federal and state governments require you to pay unemployment taxes to help them pay unemployment benefits as needed.

 

Federal and State Taxes

Federal income tax is due monthly or semi-weekly and reported on Form 941, Employer’s Quarterly Federal Tax Return. State and local income taxes and due dates vary according to state and local law.

 

Federal unemployment taxes are required for businesses in one of two situations:

If you pay $1,500 or more to employees in any single quarter

If you have one or more employees for 20 or more weeks in a single year

Depending on how much you owe, federal taxes are paid quarterly or annually, and you must file Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, at the end of the year.

As the employer, you pay 6% of the federal unemployment tax on the first $7,000 each employee earns. You may qualify for a credit of up to 5.4% if you pay state unemployment tax as well.

For state unemployment tax, you generally must pay it in every state where you have employees. Suppose you have a distributed workforce with either remote workers or people who work at a branch of your business in a state other than yours. In that case, you need to pay the taxes according to where the employee lives and works.

 

State unemployment taxes are typically due quarterly, but base wage rates vary by location. Also, depending on the industry and previous unemployment claim experience, your unemployment tax liability may vary.



 

NEED HELP WITH OFFER IN COMPROMISE, TAX SETTLEMENTS, TAX PREPARATION, AUDIT REPRESENTATION OR STOP WAGE GARNISHMENTS?

ADVANCE TAX RELIEF LLC

Call (713)300-3965

www.advancetaxrelief.com

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FICA and Forms

Where would the government be without its forms? 

 

IRS Form 941, Employer's Quarterly Tax Return (the same as above), is the form to file each quarter. FICA taxes are paid either monthly or semi-weekly, depending on the size of your payroll. 

 

The withholdings include Social Security and Medicare. You pay the employer's share and withhold the employee's share to pay to the government.

 

Employee Wage and Tax Reporting

You must provide each employee a W-2, Wage, and Tax Statement by January 31 of the following tax year. If you pay independent contractors, you need to send each a Form 1099-MISC, Non-employee Compensation.

 

If you miss the deadlines for distributing these forms, you will pay penalties. The IRS loves its penalties.

 

How to Calculate Your Payroll Taxes

FICA taxes are pretty straightforward. The IRS charges a flat percentage rate of the employee’s gross wages. 

Social Security requires you to deduct 6.2% of the employee’s gross wages until you hit a wage base, which changes according to the tax law. 

For Medicare, you must deduct 1.45% of the employee's gross wages. Together with Social Security, you withhold 7.65% of each employee's gross wages, and then you, as the employer, must match that. 

If you pay any employee an income above a specific threshold, you must withhold an additional 0.9%. 

 

The IRS and state taxing authorities require you to accurately complete your wage and tax reporting forms on time. If you miss distribution deadlines, you’ll pay penalties.

Calculate payroll taxes every pay period. Determine individual withholding according to employee certificates and federal and state income tax brackets. 

 

Penalties

What sort of penalties could you face if you don’t pay payroll taxes? Any of the following:

 

Monetary penalties

Interest on back taxes

Liens against your property

Civil and criminal sanctions

Jail sentences

 

The amount of the penalties depends on several factors, including:

 

The type of infraction

The size of your business

How much you owe

Whether the payment was late or never received

The fees for all this continue to increase according to how long the payments are past due. They build up quickly. 

 

Late one to five days - you pay 2%

Late six to 15 days - you pay 5%

Late more than 16 days - you pay 10%

If you wait until more than ten days past your first IRS notice, you pay 15%

Oh, the IRS notice? That’s how you know you owe. The agency sends a notice or letter telling you of your Failure to Deposit Penalty. 

 

TRUST FUND RECOVERY PENALTIES (TFRP)

No, this isn't a text abbreviation. It stands for Trust Fund Recovery Penalty, a fancy name for the program that decides whether your tax issues are by mistake or on purpose.

TFRP is based on willful failure to collect and pay payroll taxes. An employer may be found willful if it:

 

Were or should have been aware of outstanding taxes and

Intentionally disregarded the law or were indifferent to its requirements

Willful failure to pay is much worse than making a mistake. However, you can seek an abatement by providing reasonable cause for your unreported taxes or late payments. Any of the following are considered reasonable:

 

Fire or natural disaster

The inability to obtain records

Death or serious illness

The unavoidable absence of the taxpayer or immediate family

Be prepared to provide documentation or physical evidence of disaster.

 

And, no, just because you don’t have the money doesn’t count. Lack of funds is not considered a reasonable cause.

 

How to Avoid Penalties

It's always better to avoid penalties than to pay them. And there are several ways to make sure you stay on the right side of the IRS (and the state and local tax authorities; you mustn't forget about them).

 

Improve Payroll Processes

Ensure your payroll process monitors, withholds, and reports all compensation paid to employees. Remit and report all taxes withheld from wages on time.

 

Stay Up to Date with IRS Announcements

The IRS publishes news releases and tip sheets to help employers remain aware of changes in tax law and new form submission guidelines. If you pay state payroll taxes, be sure to pay attention to those as well. Most states have a website where they put news releases and tax law changes.

 

Keep an Unemployment Tax Budget

Make unemployment taxes part of your overall business budgeting process. If you don't, you may find yourself short when it's time to pay. Most businesses create a separate account for payroll taxes to make things easier to manage.

 

Maintain Proper Employee Classification

Employee classification can be complicated. Do you have employees or independent contractors? It’s appealing to classify everyone as an independent contractor to lower your tax liability, but don’t do it.

 

Carefully check the IRS and state tax law definitions of employee and independent contractor and follow them to the letter. 

 

Use a Payroll Provider or Software

You have several choices of payroll software that provide all the tax services you need to report and remit taxes accurately. An alternative is to hire a provider to take care of your payroll tax details. Either way, you remain responsible for the related tax obligations and paperwork.

Contact Advance Tax Relief to Help Deal with Back Taxes

If you have a tax levy on your paycheck or the IRS is threatening you with one, you need a tax professional who specializes in tax debt relief on your side.

Seeking professional help when handling back taxes can help you avoid the discussed errors. At Advance Tax Relief, we offer specialized tax resolution services to help you deal with IRS debt.

Our experts can help rectify erroneous tax bills and guide you in picking a suitable repayment program. Contact us today (713)300-3965 for back tax filing and tax relief services.

 

Advance Tax Relief is rated one of the best tax relief companies nationwide.

 

#FreshStartInitiative

#OfferInCompromise

#TaxPreparation 

#TaxAttorneys

#TaxDebtRelief

#TaxHelp 

#TaxRelief

#BestTaxReliefCompanies


Wednesday, May 18, 2022

I’VE NOT FILED MY TAXES: WHAT SHOULD I DO?

It’ll be OK, we promise. If, that is, you get moving now. The longer you wait to rectify the situation, the more you will owe in penalties and interest. So, let's get right to it!

You forgot to file your taxes. Here’s what to do. 

 

Are You Expecting a Refund?

Guess what? If you have a refund due, you won't pay any penalties for filing late. You're off the hook since you don't owe money to Uncle Sam. Except you won't get that refund until you file.

Another exception is if you want to take advantage of specific tax selections, it's too late. Those need to be done by the due date. If some of those selections provided your refund, you had better check again. You may not have a refund after all.

The statute of limitations for the IRS to audit your return doesn’t start until you file. Also, if you owe state taxes, you still need to file those, or you will probably get hit with penalties and interest there. 

One more thing — if you owe back taxes for other years, if you never file a return, there is no limit on how many years the IRS can go back to assess and collect tax. Any refund you expect will be applied to any back tax balance.


NEED HELP WITH OFFER IN COMPROMISE, TAX SETTLEMENTS, TAX PREPARATION, AUDIT REPRESENTATION OR STOP WAGE GARNISHMENTS?

ADVANCE TAX RELIEF LLC

Call (713)300-3965

www.advancetaxrelief.com

BBB A+ RATED

 

 

 

Failure to File Penalty

The Failure to File penalty for those who owe taxes is actually higher than the penalty for late or non-payment. The penalty is calculated as a percentage of the taxes you owe and how late you file your return. When the IRS sends you a letter or notice, you find out how much.

The Failure to File penalty is 5% of your unpaid taxes for each month or part of a month the tax return is late. The maximum amount is capped at 25% of your unpaid taxes, but it adds up quickly. Unlike the Failure to Pay penalty, the charges for Failure to File continue until you pay your taxes in full. 

Finally, if your return is over 60 days late, the minimum Failure to File penalty is $435 for returns that should have been filed in 2020, 2021, or 2022 or 100% of the taxes showing on the return whichever is less.

To add insult to injury, the IRS charges interest on any penalty amounts. The date when the interest on the penalty begins varies with the type of penalty. 

 

Failure to Pay Penalty

Since you didn’t file, you probably didn’t pay, right? At least the penalty for Failure to Pay is a fraction of the Failure to File Penalty.

 

Failure to Pay is 0.5% of the total tax due for each month or portion of a month you don’t pay. If you pay it all or send a payment now and then get into a payment plan with the IRS, the penalty will stop accruing. 

 

There is a smidgen of good news here. If both the Failure to File and Failure to Pay penalties are charged for the same month, the Failure to File penalty is reduced by the amount of the Failure to Pay penalty, so you aren't charged more than 5% for each month the return is late.

 

After five months, you will max out your Failure to File penalty. However, you will owe Failure to Pay penalties until the tax balance and interest are fully paid. Failure to Pay also maxes out at 25% of the balance.

 

Make It Stop!

You can make the penalty for failing to file or pay stop by filing your return and paying your taxes in full, including any penalty charged to date. 

 

Remove or Reduce Penalty

If you can’t afford that, you might be able to reduce or remove the penalty if you can prove to the IRS you acted in good faith and have reasonable cause for being unable to meet your tax obligation. 

However, you will continue to accrue interest until the penalty is reduced or removed. The IRS is bound by law in this regard.

 

Dispute Penalty

If you disagree with the amount you owe, call or write the IRS and tell the agency why it should reconsider the penalty. Sign the letter and send copies of your supporting documents if you write. 

 

Keep the following information handy when speaking to the IRS:

 

The notice or letter the IRS sent

The penalty you want to be reduced or removed

An explanation of why you think the IRS should remove each penalty

Apply for an Extension

If you need more time to prepare your return, you can file for an extension. Then you won’t need to file until October 17, 2022.  If you make a payment along with your request, the IRS automatically grants your extension. Otherwise, the agency requires a form of security before granting an extension:

 

A bond

A notice of lien

Mortgage

Other means

Unfortunately, the extension doesn't apply to the payment. You still need to pay all or part of your taxes on time. The balance accrues interest until you pay it in full. 

 

You may be granted an extension if you live in a Federally Declared Disaster area.

 

A Note about Undisclosed Offshore Accounts

Foreign accounts not disclosed through FBAR or FATCA receive much closer scrutiny than other accounts. The fines and penalties for not reporting or paying are higher. These cases are more likely to be referred for criminal investigation and prosecution because the Federal government sees the delay in reporting as a step toward income concealment.

 

If you have significant balances in offshore accounts, you need to work with a tax attorney to get things straightened out immediately, if not sooner.

 

You Can Fix It

So, you forgot to file your taxes this year. You can fix it! File as soon as possible and make at least a good faith payment when you do, even if you are filing for an extension. You might still receive a notice from the IRS, but it will have helpful information about your tax balance, interest, and any penalties you owe.

 

If you need help, contact Advance Tax Relief. We have experts on staff that can get you started on the road to IRS redemption.

 

Contact Advance Tax Relief to Help Deal with Back Taxes

If you have a tax levy on your paycheck or the IRS is threatening you with one, you need a tax professional who specializes in tax debt relief on your side.

Seeking professional help when handling back taxes can help you avoid the discussed errors. At Advance Tax Relief, we offer specialized tax resolution services to help you deal with IRS debt.

Our experts can help rectify erroneous tax bills and guide you in picking a suitable repayment program. Contact us today (713)300-3965 for back tax filing and tax relief services.

 

Advance Tax Relief is rated one of the best tax relief companies nationwide.

 

#FreshStartInitiative

#OfferInCompromise

#TaxPreparation 

#TaxAttorneys

#TaxDebtRelief

#TaxHelp 

#TaxRelief

#BestTaxReliefCompanies

Tuesday, May 17, 2022

HOW TO STOP IRS TAX DEBT WAGE GARNISHMENTS

If you are in bad standing with the taxman, they may initiate garnishment. However, there are ways to stop IRS wage garnishment, here’s what you should know.


Stopping IRS Wage Garnishment

1. Pay Your Back Taxes

2. Negotiate an Offer in Compromise

3. Argue as Non-Collectible

4. Appeal the IRS Wage Garnishment

5. Always Consult a Tax Professional


Wage garnishment is when a creditor takes a portion of your compensation and wages to pay off a debt. Rather than empty out a bank account or sell a property you own through a levy, wage garnishments are a gradual process that lasts until the debt is satisfied.

Just like other creditors, the government can garnish your wages for debts, such as a federal tax debt. In this case, the IRS itself makes a legal claim on your property (through a lien), then issues multiple warnings, before issuing a Final Notice of Intent to Levy.

The IRS will send a copy of Publication 1494 to your employer, to help them figure out how much of your income to exempt from garnishment. Your employer will ask you to fill out information your dependents and filing status, which you must return within three days. Otherwise, the amount exempt will be based on zero dependents.




NEED HELP WITH OFFER IN COMPROMISE, TAX SETTLEMENTS, TAX PREPARATION, AUDIT REPRESENTATION OR STOP WAGE GARNISHMENTS?


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www.advancetaxrelief.com

BBB A+ RATED

 

Stopping IRS Wage Garnishment

There are a number of ways to stop IRS wage garnishment and get your garnishment released.


1. Pay Your Back Taxes

It’s easier said than done, of course, but it is also the simplest solution to ending IRS wage garnishment. You don’t have to pay your tax debt all at once. The IRS offers a short-term payment plan (within 180 days) as well as a long-term monthly installment plan (more than 180 days) through their website.

When you do decide to pay the IRS, be sure to go through their website to do so. They have information on how to either directly wire money to the IRS, send in checks, use a debit/credit card, or make payments through the Electronic Federal Tax Payment System. Avoid tax and tax payment-related scams.


2. Negotiate an Offer in Compromise

Offers in compromise are often touted as a miracle solution against IRS tax debt, but it’s important to differentiate truth from hype. Yes, an offer in compromise can get you to drastically lower your original tax debt to a comparatively tiny value in some cases. But it is genuinely rare for the IRS to accept an offer in compromise.

With an offer in compromise, you are making the argument that even if you sell all non-essential assets and save up nearly every penny not spent on taxes, rent, and food, you still won’t be able to pay off the entire debt at a monthly rate before it expires (within ten years, plus tolling periods).


While the IRS has become a little more lax about accepting offers in compromise through its Fresh Start Initiative (you now only need to pay off your debt for about two years, rather than five), the basic spirit remains – partial tax debt forgiveness is not easy to come by. Your best bet for negotiating an offer in compromise, if it’s the only option you see as a way to cut off your IRS wage garnishment, is to talk to a tax professional. They’ll be able to analyze your situation and make an informed call.


3. Argue as Non-Collectible

A true last resort option is to convince the IRS that you are suffering financial hardship. One of the informal rules under the Taxpayer Bill of Rights is that the IRS must be courteous, and that includes not pressuring people to pay their debts when they are struggling to keep a roof over their head and put food on the table.


However, this does not make your debt go away. Neither does it eliminate penalties or interest rates. Your debt will continue to grow. But the IRS will not pressure you to pay it off until your financial situation has changed.


You don’t necessarily need to notify the IRS that your financial situation has changed. They will check up on your finances and tax reports periodically. But it is important to note that it is still likely in your best interest to pay off the debt as soon as you are financially able to, as it will otherwise just keep growing, and the IRS will soon begin garnishing your wages again.


Don’t forget to do your taxes even while non-collectible! The IRS can penalize you again and again for each missed tax return, and it won’t accept a payment plan from you until all your missing tax returns are turned in.

 

4. Appeal the IRS Wage Garnishment

This can be somewhat of a desperate measure, because it is not always applicable, and there is a strict time window on it. If it has been less than thirty (30) days since you received you Final Notice of Intent to Levy, you may be able to appeal the IRS’s decision to levy your wages.


To appeal the IRS wage garnishment, you must prove that there was a mistake made with the amount you owe, or that there was insufficient notice provided before your wages were levied. However, it’s also important to note that the IRS reserves the right to levy your property or wages immediately if your debt threatens to expire.


If you are interested in your options to appeal the IRS’s decision to levy your wages, it’s important to get in touch with a tax professional right away. An experienced professional will help ensure that your appeal is made the right way.

 

5. Always Consult a Tax Professional

Online advice can help you better understand and interpret the information the IRS is providing you, but it doesn’t beat a one-on-one professional consultation. Many professional tax services offer individualized consultations at a low rate, or for free

If you want to get a better grasp on what’s going on and need to explore your options more thoroughly, a tailored response from a real tax law firm will be your best bet. Here at Advance Tax Relief, we specialize in helping clients navigate the IRS wage garnishment and requirements, and help you towards a tax debt-free life.


Contact Advance Tax Relief to Help Deal with Back Taxes

If you have a tax levy on your paycheck or the IRS is threatening you with one, you need a tax professional who specializes in tax debt relief on your side.

Seeking professional help when handling back taxes can help you avoid the discussed errors. At Advance Tax Relief, we offer specialized tax resolution services to help you deal with IRS debt.

Our experts can help rectify erroneous tax bills and guide you in picking a suitable repayment program. Contact us today (713)300-3965 for back tax filing and tax relief services.

 

Advance Tax Relief is rated one of the best tax relief companies nationwide.


#FreshStartInitiative

#OfferInCompromise

#TaxPreparation 

#TaxAttorneys

#TaxDebtRelief

#TaxHelp 

#TaxRelief

#BestTaxReliefCompanies

Thursday, May 12, 2022

AVOID TAX PENALTIES FOR YOUR SMALL BUSINESS

You’ve done it, started a business and now you are your own boss. With a business comes the responsibility of keeping track of your books and staying on top of paying your taxes to Uncle Sam. This article won’t hire you a bookkeeper, but it will break down the basics of paying taxes on self-employed income.

What is Estimated Tax Payments (ETP)?

When you are an employee, your employer withholds taxes from every paycheck and sends that money to the IRS on your behalf. Essentially you are paying your taxes as you go. Estimated tax payments allows individuals to pay not only their income tax, but other taxes such as self-employment tax and alternative minimum tax as their business generates income.



 

NEED HELP WITH OFFER IN COMPROMISE, TAX SETTLEMENTS, TAX PREPARATION, AUDIT REPRESENTATION OR STOP WAGE GARNISHMENTS?

ADVANCE TAX RELIEF LLC

www.advancetaxrelief.com

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Why is this important?

If you don’t pay enough tax through estimated tax payments, you may be charged a penalty. You also may be charged a penalty if your estimated tax payments are late, even if you are due a refund when you file your tax return.


Tips to be prepared

Being prepared will always save you headaches and surprises later.

First figure out if you need to pay estimated tax payment.

Per the IRS, “Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed.”

Refer to a prior year tax balance or ask a tax professional to help estimate your current year’s tax liability based on the business’s current numbers. You can also use the Form 1040-ES on the IRS website if you feel confident in estimating your own taxes.

If you did not have any tax liability from last year, the prior tax year covered a 12-month period, you are a U.S citizen for the year, and you don’t project any increases in net profits this year, then you don’t have to pay estimated tax payments for the current year.

Second set aside an amount for your estimated tax payments. It has become common practice for tax preparers to provide you with payment vouchers to mail in with your quarterly payments. If you don’t have payment vouchers, take either your estimate tax liability for this year or last year’s tax liability and divide it by four. You are required to make payments quarterly on the following dates: 04/15, 06/15, 09/15, 01/15 (following year). Many recommend submitting a payment weekly or monthly to create a habit of paying as you go.

Payments can be made online (https://www.irs.gov/payments), by phone, by app (IRS2GO) or by mail with a ETP voucher. The online system will take direct pay out of a checking/savings account or by card. A convenience fee will be charged for those paying by credit card.

 

Contact Advance Tax Relief to Help Deal with Back Taxes

If you have a tax levy on your paycheck or the IRS is threatening you with one, you need a tax professional who specializes in tax debt relief on your side.

Seeking professional help when handling back taxes can help you avoid the discussed errors. At Advance Tax Relief, we offer specialized tax resolution services to help you deal with IRS debt.

Our experts can help rectify erroneous tax bills and guide you in picking a suitable repayment program. Contact us today (713)300-3965 for back tax filing and tax relief services.

 

Advance Tax Relief is rated one of the best tax relief companies nationwide.

 

#FreshStartInitiative

#OfferInCompromise

#TaxPreparation 

#TaxAttorneys

#TaxDebtRelief

#TaxHelp 

#TaxRelief

#BestTaxReliefCompanies


Sunday, May 8, 2022

HOW FAR BACK CAN THE IRS GO TO UNPAID TAXES?

Every year, 30 million people end up owing money to the federal government for taxes. If you’re one of those people with unpaid taxes, you might forget about it and let it fall off of your plate. However, it’s unlikely the IRS is going to forget and they could come after you years after you file for something they say you owe.


Here’s everything you need to know about the statute of limitations and how long the IRS can knock on your door for money.


Watch for the Ten-Year Mark

Generally speaking, there’s an approximately 10-year expiration date on when the IRS needs to get your back taxes by. If the IRS collections don’t get what they’re looking for by the time that ten years is up, then they can’t go back any further.



NEED HELP WITH OFFER IN COMPROMISE, TAX SETTLEMENTS, TAX PREPARATION, AUDIT REPRESENTATION OR STOP WAGE GARNISHMENTS?

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The IRS can collect that far back, starting from the date they assessed your taxes. They set the deadline and they know when their deadline is approaching. If you haven’t paid back taxes by the time that date rolls around, steel yourself for the possibility of some aggressive collection efforts.


There are some exceptions noted below of when they’re allowed to continue collecting, but legally, they can’t go past this deadline. The IRS lets thousands of taxpayers who owe money slip through their fingers every year. Some of these taxpayers breathe a sigh of relief while others, who are chronically late with their taxes, may just live to fight another day.

If your CSED or Collection Statute Expiration Date is approaching, put some money aside to help pay off what you can. You might be able to negotiate with the IRS if the date is fast approaching.


Mark the Start Date Right

If you don’t know when your limitation period begins, you might think you’re out of the woods long before you really are. If you then get loose with your spending and don’t prepare for the potential of paying off your taxes, you might end up dealing with a big bill at the last minute.


The ten-year period starts from when the taxes were assessed, meaning the date printed on the first letter you got from the IRS telling you that you owed them something. The IRS service center dates these forms so that you know the legal status of the situation that you’re in.


If you don’t pay when you file a tax return, you’ll end up getting a bill. The bill states the amount of money you owe in an official written notice, which is part of this legal process. If you don’t fill out the return, you’ll still be asked for what you owe.


In the absence of a filled out tax filing, the IRS might fill one out for you. They’ll create a substitute return to figure out a deficiency assessment. In this case, they’ll start the clock then.

If you try to escape the IRS by not filling out a tax return, you’ll still be on the hook.

How It Drags Over the 10-Year Mark


There are times when a collection period of ten years might last more than ten years. That’s because your CSED is suspended during certain periods. Any time that passes during the suspension isn’t counted toward your 10 years. The statue of limitation is suspended for a number of different reasons.

During periods when the IRS isn’t allowed to collect from you, this period goes into suspension. If you’re in one of these periods for a year, then they get a full extra year to collect from you.

This happens for some people when they’re filing for bankruptcy. If you end up going to bankruptcy court, you’ll get an automatic stay from the period fo your bankruptcy period plus six months. This can drag your collection period out for a while.

If you’ve reached out to the IRS and requested an installment agreement or something like an offer in compromise to pay it down, then it’s suspended. Any time that the IRS is looking over your status to figure out whether or not to afford you any kind of assistance, the statute is extended.

The IRS even gets the ability to extend the period if they sue you in a federal court, but the likelihood of this is limited.


Asking For an Extension
Not all extensions are court-ordered or out of the hands of the individual filer. Some people ask for extensions depending on what they need.


In the past, the IRS would put serious pressure on taxpayers to extend the limitations. The extensions could stretch as long as 20 years in some cases. While this is seemingly voluntary, it was often due to aggressive pressure from the IRS because they wanted to collect their back taxes in full, penalties and all.

If you were ever put under this kind of pressure, you know how intimidating it can be. After years of lawsuits and pushback from lawmakers, people are able to avoid this kind of pressure.


Entering into an installment plan or a partial payment plan with the IRS requires filing some paperwork. In most of these cases, you end up signing a waiver letting them off the hook for the ten-year period. When this is the case, the period is only allowed to be extended for six years.


If the period is close to the end and you still owe the IRS a lot of money, they’ll put some pressure on you to get their money in full. They’ll offer what looks like an attractive agreement for the extension, but in the end, it’s unlikely to benefit you as the taxpayer.


Unpaid Taxes Can Turn To a Major Headache


If you end up with unpaid taxes, you’ll have them hanging over your head for years, collecting interest and fees as you struggle to pay them back or just forget. If you forget to pay your taxes, the IRS is sure to remember and find a way to remind you.

Contact Advance Tax Relief to Help Deal with Back Taxes


If you have a tax levy on your paycheck or the IRS is threatening you with one, you need a tax professional who specializes in tax debt relief on your side.


Seeking professional help when handling back taxes can help you avoid the discussed errors. At Advance Tax Relief, we offer specialized tax resolution services to help you deal with IRS debt.
Our experts can help rectify erroneous tax bills and guide you in picking a suitable repayment program. Contact us today (713)300-3965 for back tax filing and tax relief services.

Advance Tax Relief is rated one of the best tax relief companies nationwide.
#FreshStartInitiative
#OfferInCompromise
#TaxPreparation
#TaxAttorneys
#TaxDebtRelief
#TaxHelp
#TaxRelief
#BestTaxReliefCompanies