A wrongful IRS levy is a levy of assets that belong to someone other than the taxpayer. This third party must file an administrative wrongful levy claim to stop the levy or seek a return of levied property. How Wrongful Levies Occur The IRS may seize a taxpayer’s...
Month: June 2019
Tax Tips: Applying Your Tax Refund to Next Year’s Estimated Taxes
Applying your tax refund to next year’s estimated taxes might not sound exciting, but it could be a smart financial choice. Your first quarterly estimated tax payment is due April 15, and applying your tax refund to this payment could offer several benefits. Avoid...
4 Common Causes of IRS Tax Debt Problems
Tax debt problems are quite common, but often come about in predictable ways. What begins as a minor financial issue can become a debt-spiral that continues to get worse over time. The following four situations commonly cause IRS tax debt problems for many taxpayers....
Who Needs to Pay Estimated Taxes?
Anyone who earns income that hasn’t already had taxes taken out might need to pay estimated taxes. This includes self-employed taxpayers, independent contractors, and taxpayers who have significant amounts of interest, divided, or capital gain income. Failing to Pay...
Strategies for Reducing the Impact of a Federal Tax Lien
An IRS tax lien can hurt your credit, cause financial problems, and encumber all of your personal and business property. Fortunately, there are many different ways to eliminate the lien or reduce the lien’s impact. Pay Off Your Tax Debt If you pay off your tax debt in...
Reasons the IRS Will Withdraw a Federal Tax Lien
A tax lien withdrawal completely removes the Notice of Federal Tax Lien (NFTL) from the public records. This lets your other creditors know that they won’t have to compete with the IRS, and could make it easier to sell, refinance, or borrow against your home. The IRS...
What Does a Federal Tax Lien Do?
A tax lien is a legal encumbrance on your property. It doesn’t result in an immediate seizure of your assets, but it can still prevent you from selling your home or getting a loan. Notice of Federal Tax Lien The IRS tax lien applies to all of your property as soon as...
How to Handle IRS Collections Caused by Tax Identity Theft
If someone steals your Social Security Number and uses it to obtain employment, the IRS may believe you actually earned that income. This can cause tax debt problems and may eventually result in IRS collection actions, such as bank levies. You will need to inform the...
When Do Foreign Bank Accounts Have to Be Reported?
The general rule for Foreign Bank Account Reports (FBARs) is that they must be filed if the aggregate account balance exceeds $10,000 at any time during the year. This includes any account you have a financial interest in or signature authority over. There are some...
How to Evaluate Offshore Disclosure Options
You have three main options when it comes to offshore disclosure: Submit the delinquent information returns, which is known as a quiet disclosure. Use the Streamlined Filing Compliance Procedures. Use the new Offshore Disclosure Rules, which have replaced to old...