Equitable relief is the only type of innocent spouse relief that can be used for unpaid taxes. The other two types of innocent spouse relief can only be used for understated taxes—amounts that were improperly reported on your return and were later adjusted by the IRS....
Month: February 2019
Innocent Spouse Relief for Underreported Taxes
You can use any of the three types of innocent spouse relief for taxes that were underreported on your return. Underreported taxes can be the result of any of the following incorrect items: Income was underreported on your return. Deductions or credits were claimed...
How to Get an IRS Wage Garnishment Release
IRS wage garnishments are continuous levies, meaning that they will take money out of every paycheck you receive until your tax debt is paid off. This can cause serious financial difficulties as the levy takes a large portion of your wages for months on end. The best...
Maximum Amount for an IRS Wage Garnishment
The wage garnishment amount isn’t based on a percentage of your wages or a maximum amount that can be garnished. The IRS is only limited by the amount of your wages it must leave you with. In other words, the more you make, the more the IRS can take. Wage Exemption...
What to Do When the IRS is Going to Levy Your Bank Account
Except in rare cases, the IRS has to send you a Notice of Intent to Levy by mail before your bank account can be levied. This notice tells you the following things: You owe IRS tax debt and haven’t paid on time. The IRS is going to seize the money in your bank account...
Avoid These IRS Payment Plan Mistakes
Your IRS payment plan should set you up for success when it comes to paying off your tax debt. But if you don’t negotiate an agreement that fits your budget, you could end up defaulting on your agreement or having other financial problems. Consult with a tax payment...
The IRS Bank Account Levy Process
The IRS follows a standard process when levying the funds in a taxpayer’s bank account. You will be given several opportunities to resolve your tax debt problems before the money in your bank account is subject to IRS seizure. You Have Unpaid Taxes The IRS won’t levy...
Is A Tax Extension Really Free?
It’s free to request an automatic six-month tax filing extension, but you may be charged late payment penalties and interest until you pay your full tax liability for the year. However, you will avoid the failure-to-file penalty if you request an extension and file...
Is It Too Late to Get Your Tax Refund from Last Year?
You can still claim your tax refund from last year, and for any returns due less than three years ago. Once it’s been three years since the deadline to file the return (approximately April 15th), you can no longer seek a refund. How to File a Late Return You won’t be...
Stay in Tax Compliance While You Pay Off Your Tax Debt
In most cases, taxpayers who owe the IRS back taxes will also continue to incur new tax obligations. This gives the IRS the ability to place additional conditions on your installment agreement or Offer in Compromise, namely that you must comply with your current tax...