The IRS generally won’t levy your assets or garnish your wages while you are paying off your tax debt with an installment agreement. However, you must meet all the terms of your installment agreement to avoid a potential payment plan default. Permitted Collection...
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WHAT COLLECTION ACTIONS CAN THE IRS TAKE?
The IRS is one of the most powerful creditors a person can have under U.S. law. There are many types of collection actions that the IRS may take that an ordinary creditor would not be allowed to. If you owe the IRS money, you may be at risk for any of the following...
HOW TO RESPOND TO AN IRS COLLECTION NOTICE
The IRS sends taxpayers many different types of collection notices. You should carefully read every notice to figure out how to respond and how long you have to pay your balance or contact the IRS. Basic Collection Notices If you’ve already been assessed taxes, you...
TAX PROBLEMS FOR SENIOR CITIZENS
Seniors may have accumulated tax liabilities from their working years or from their retirement income. If you have tens of thousands in IRS tax debt, you could be at risk of tax liens, levies, and other issues. IRS Collection Actions The IRS can levy up to 15% of your...
WHAT ARE THE IRS ALLOWABLE LIVING EXPENSES?
IRS allowable living expenses are used to determine how much you should be able to pay each month in an IRS installment agreement. These expenses involve national standards as well as local standards for rent and other expenses. 2019 Allowable Living Expenses...
Tax Problems For People With Multiple Jobs
Taxpayers with more than one job generally have more complicated tax returns. They can also run into tax problems if they don’t have enough taxes withheld during the year or make estimated tax payments. If you have multiple jobs or a job and some side gigs, make sure...
Can You Get a Passport If You Owe the IRS Money?
You may not be able to get a passport or renew your existing passport if you owe the IRS money. However, the IRS only goes after a taxpayer’s passport when there is a significant amount owed and certain other procedures have been followed. Whether your passport is at...
What to Do If You Receive an IRS Passport Letter
The IRS passport letter—formally known as a CP508C Notice—is telling you that your passport is at risk due to your tax debt problems. If you don’t take action, the State Department may deny your next passport renewal or even remove or put limitations on your current...
Important Statutes of Limitations for Tax Problems
Statutes of limitations are laws that limit how long someone has to bring a legal claim. The IRS must abide by various statutes of limitations when it comes to assessing taxes and trying to collect them from taxpayers. If the statute of limitations has run in your...
5 Common Mistakes When You Have Tax Debt Problems
Many taxpayers accumulate some state or IRS tax debt. If you have a solid tax resolution plan and execute it properly, you can usually regain control of your financial situation and work towards eliminating your debt. However, some taxpayers make their problems much...