Some Things the IRS Would Prefer You Not Know
Every taxpayer has options and rights regarding their income taxes.
The IRS also has options in regard to how it treats taxpayers.
Here are a few things that the IRS might prefer remain undisclosed.
You must pay your taxes in full by April 15, but you can get an automatic six-month extension for filing your paperwork simply by filing IRS form 4868.
There is no penalty for filing an extension, but remember that the extension is for paperwork only.
Your taxes must still be paid by April 15, no matter what.
The IRS always wants to settle delinquent accounts as quickly as possible, even if it means giving you a deal on interest and penalties.
Pursuing overdue taxes is a very expensive process and the IRS would rather drop interest and penalties, if it means collecting what you owe, than continue to attempt to collect them.
In some cases, the IRS is even willing to settle for less than the overdue tax, if you can convince them that your financial circumstances are desperate enough that it is simply impossible to pay the total.
The IRS does not want your property.
Locating, seizing, and selling your property is a tedious and expensive process.
The IRS much rather garnish your wages or seize your bank accounts.
They really don't want your stuff.
They want your cash.
The IRS likes to threaten and use fear as a tool to get what they want.
They may threaten to seize your property, garnish your wages, or levy your bank accounts in an attempt to get you to enter into a less than beneficial payment arrangement.
Always consult a tax attorney when the IRS begins to threaten you.
The traditional installment agreement is not the only way to set up a payment schedule with the IRS.
Taxpayers also have the option of a Streamlined Installment Agreement.
The Streamlined Installment Agreement does not require a full financial disclosure as long as your debt is under $25,000 in total and you agree to make full payment within five years or less.
The IRS can waive fees and deposits required on certain tax debt repayment applications, according to your financial resources.
The Taxpayer Advocate Service promotes helping taxpayers resolve IRS debt problems, but is actually, itself, a part of the IRS.
Kind of like letting the fox guard the hen house, don't you think?
The IRS also has options in regard to how it treats taxpayers.
Here are a few things that the IRS might prefer remain undisclosed.
You must pay your taxes in full by April 15, but you can get an automatic six-month extension for filing your paperwork simply by filing IRS form 4868.
There is no penalty for filing an extension, but remember that the extension is for paperwork only.
Your taxes must still be paid by April 15, no matter what.
The IRS always wants to settle delinquent accounts as quickly as possible, even if it means giving you a deal on interest and penalties.
Pursuing overdue taxes is a very expensive process and the IRS would rather drop interest and penalties, if it means collecting what you owe, than continue to attempt to collect them.
In some cases, the IRS is even willing to settle for less than the overdue tax, if you can convince them that your financial circumstances are desperate enough that it is simply impossible to pay the total.
The IRS does not want your property.
Locating, seizing, and selling your property is a tedious and expensive process.
The IRS much rather garnish your wages or seize your bank accounts.
They really don't want your stuff.
They want your cash.
The IRS likes to threaten and use fear as a tool to get what they want.
They may threaten to seize your property, garnish your wages, or levy your bank accounts in an attempt to get you to enter into a less than beneficial payment arrangement.
Always consult a tax attorney when the IRS begins to threaten you.
The traditional installment agreement is not the only way to set up a payment schedule with the IRS.
Taxpayers also have the option of a Streamlined Installment Agreement.
The Streamlined Installment Agreement does not require a full financial disclosure as long as your debt is under $25,000 in total and you agree to make full payment within five years or less.
The IRS can waive fees and deposits required on certain tax debt repayment applications, according to your financial resources.
The Taxpayer Advocate Service promotes helping taxpayers resolve IRS debt problems, but is actually, itself, a part of the IRS.
Kind of like letting the fox guard the hen house, don't you think?
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