Appealing the Filing of a Lien
Thursday, May 6, 2010 // 0 Comments // Tax Law
The IRS must provide written notice of a lien within five days of its filing. Once taxpayers receive that notice, they may opt to request a Collection Due Process hearing with the Office of Appeals. The paperwork involved may become tricky, as you must file with the specific office listed on the Notice of Appeal, [...]
Read more & Talk about itBankruptcy
Thursday, May 6, 2010 // 0 Comments // Tax Law
Bankruptcy is designed to give individuals and businesses a chance to start over, without the burdens of debts they’re unable to pay. Bankruptcy proceedings operate under the assumption that debtors have made a good faith attempt to pay creditors. To meet the varied needs of entities filing for bankruptcy, there are several categories, called chapters, [...]
Read more & Talk about itChange of Filing Status
Thursday, May 6, 2010 // 0 Comments // Tax Law
Couples getting married may joke about how they’re looking forward to enjoying the tax benefits. While no one seeks a spouse solely for tax purposes, marriage does offer filing options that may prove beneficial. It’s best to consult with a tax professional to determine the optimal filing status for your individual situation though. One option, [...]
Read more & Talk about itChapter 11
Thursday, May 6, 2010 // 0 Comments // Tax Law
Chapter 11 bankruptcy allows businesses to reorganize and institutes an automatic stay, which is essentially a government-mandated order to prevent creditors from acting to collect debts. When an entity enters Chapter 11, it can begin negotiations with creditors and develop a plan to reorganize. Chapter 11 is appropriate if the entity in question is not [...]
Read more & Talk about itChapter 13
Thursday, May 6, 2010 // 0 Comments // Tax Law
Chapter 13 bankruptcy can only be filed by individuals and acts as a means of reorganization. Individuals who have an income that would allow repayment of debts will typically use Chapter 13 as a way to institute a 36 to 60 month payback plan. Individuals who are behind on their mortgages or have debts that [...]
Read more & Talk about itChapter 7
Thursday, May 6, 2010 // 0 Comments // Tax Law
Under Chapter 7, the debtor filing for bankruptcy has expenses that exceed income. The debtor may have become insolvent for various reasons, including unemployment, medical bills, lawsuits, or economic hardships. When debtors reach this point of insolvency, it means that they’re unable to pay back their debts. A Chapter 7 filing is essentially a liquidation [...]
Read more & Talk about itCharitable donations
Thursday, May 6, 2010 // 0 Comments // Tax Law
Making charitable donations is a legitimate way to reduce your taxable income, and as a result reduce the overall taxes you’d have to pay.
Read more & Talk about itConclusion
Friday, January 1, 2010 // 0 Comments // Tax Law
If you’re looking to reduce your tax liabilities, there are certainly legal ways to do so, and these ways are often called tax shelters. However, there is a gray area between tax liability reduction and tax evasion, which is punishable by law. It’s best to consult a financial professional to explore legal, effective options for [...]
Read more & Talk about itConsequences of a Lien
Thursday, May 6, 2010 // 0 Comments // Tax Law
If the taxpayer fails to satisfy the debts in 10 days, the IRS creates a lien and files a Notice of Federal Tax Lien. Because a lien is filed publicly and gives notice to all creditors, the affects can be immediate and devastating to the taxpayer. Liens damage credit ratings, and the repercussions may prevent [...]
Read more & Talk about itFinancing arrangements
Thursday, May 6, 2010 // 0 Comments // Tax Law
Related individuals often use complicated arrangements involving capital gains taxes to their advantage. Capital gains incur fewer taxes than other investment income, so one person might decide to pay inflated interest rates to a related person in order to reduce the overall taxable value of the investment. Then, when withdrawing the investment, a huge capital [...]
Read more & Talk about itFrivolous Anti-Tax Arguments
Thursday, May 6, 2010 // 0 Comments // Tax Law
Although payment of federal taxes is a well-established precedent in the United States, sometimes individuals and groups claim that taxes are illegal. These groups often lure unsuspecting taxpayers into agreement with their schemes. Unfortunately, taxpayers who refuse to pay the taxes owed may incur penalties and legal action on the grounds of tax evasion. Anti-tax [...]
Read more & Talk about itIRS Collection Process
Thursday, May 6, 2010 // 0 Comments // Tax Law
When a taxpayer fails to file a return and pay money owed in a timely manner, the IRS initiates the collection process. The first step in this process is sending the taxpayer an official bill, called a notice. Along with the notice, taxpayers receive documents explaining their rights and the various options for achieving payment. [...]
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