Resolving IRS wage garnishment

Whenever a taxpayer owes back taxes to the IRS, the agency has the power to levy or seize properties, including the delinquent’s weekly wages. Unfortunately, wage garnishment can cause even more trouble for the taxpayer as it can financially cripple him even more.

The occurrence of wage garnishment is common, with a minimum of 25 and a maximum of 75 percent of the paycheck being seized by the IRS. Even if the amount taken is at a lower percentage, individuals and families can still be affected greatly. Aside from the monetary hardship it results to, employers are also notified, which can be detrimental to one’s profession and can even cost some people their job.

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It is important then to understand the IRS procedures before they are authorized to apply wage garnishment.

After assessment of tax liabilities, the IRS sends a notice and “Demand for Payment” letter to the taxpayer. If he is unable to pay the amount due, he will be issued the “Final Notice of Intent to Levy” and “Notice of your Right to a Hearing” documents. The taxpayer will then have 30 days to contact the IRS and resolve the problem.

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The implementation of wage garnishment can be appealed and suspended with the help of tax professionals. Aside from the temporary suspension of the levy of wages, workable solutions can also be created, including installment plans and settlement offers. These can help the individual get back on track to a sustainable income.

Kathy Hill founded Tax Tiger in 2002 to provide effective, aggressive, and fair relief to individuals and businesses who were debilitated by IRS tax issues. Guided by this vision and backed by a team of experts, the company has saved customers more than $120 million in back taxes and has an A+ rating with the Better Business Bureau. Find out more about Tax Tiger by visiting this website.

Secure Finances By Avoiding These Three Common Tax Mistakes

Filing taxes these days has been easier thanks to a variety of tax assistance software. Even if these applications make the task less time-consuming, a taxpayer should check and double-check all the forms for accuracy. A simple mistake on a tax form could cost the taxpayer or prevent him from receiving refunds.

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1. Using the wrong IRS form.

There are many types of IRS forms. Taxpayers must know which one to use that is according to his or her status to prevent deductions and delays in filing.

2. Undeclared additional income.

Another problem could arise from failing to report income that is not a part of the W-2 or 1099 reports. Examples of these are rental income and self-employment income, which have corresponding taxes. Taxpayers should remember that additional earnings mean additional taxes and filing work to prevent penalties.

3. Writing the wrong social security numbers and names.

The taxpayer often overlooks misspelled names and missing numbers, the most important details in the form. Social Security numbers and names of spouses, dependents, and children must be properly listed to qualify taxpayers for incentives such as child tax credit and earned income credit. Cases that involve refunds credited to a different person due to a wrong Social Security number have been known to exist.

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When all the details have been sorted out and prepared for submission, taxpayers must never forget to date and sign their returns. The IRS rejects unsigned tax returns even when it’s a joint account or an e-filed return. Prevent delays by checking and double-checking all the details beforehand. Once everything on the list is final, date, sign, and submit.

Tax Tiger offers affordable, effective, and aggressive tax resolution to hardworking individuals going through issues with the IRS. Visit Tax Tiger’s official website to know more about its services.

Irs Announces New Procedure For Ira Rollovers

A new procedure for IRA rollovers has recently been introduced by the IRS to ease the penalty for taxpayers who fail to meet the time limit. As stated in the Revenue Procedure 2016-47, here are 11 mitigating circumstances when a waiver of the 60-day limit would apply: 

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1. An error was committed by the financial institution making the distribution or receiving the contribution. 
2. The distribution was in the form of a check and the check was misplaced and never cashed. 
3. The distribution was deposited into and remained in an account that I mistakenly thought was a retirement plan or IRA. 
4. Principal residence was severely damaged.
5. One of the family members died.
6.  The taxpayer or one of his family members got seriously ill. 
7. The taxpayer was incarcerated.  
8. Restrictions were imposed by a foreign country. 
9. A postal error occurred.  
10. The distribution was made on account of an IRS levy and the proceeds of the levy have been returned to me.
11. The party making the distribution delayed providing information that the receiving plan or IRA required to complete the rollover despite my reasonable efforts to obtain the information.

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The IRS also included a ‘sample self-certification letter’ that can be used to notify the administrator or trustee about their situation. Previously, taxpayers who received a rollover from their retirement plan had 60 days to deposit the money into another employer’s retirement plan or into an IRA. Failing to meet the time limit would make the entire distribution a taxable income, as the IRS will assume that the money was used. They can apply for a change of ruling by sending a private letter to the IRS. 

Tax Tiger is an expert in delivering effective, aggressive, and reasonable tax remedies made possible by its team of tax specialists who approach each issue with honesty, expertise, and integrity. For inquiries, click here.

Tax Smarts: Avoiding Tax Troubles

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A basic understanding of taxes is the best way to avoid problems with the IRS. With careful consideration and planning, one can avoid stressful and costly tax troubles.

Citizens have the obligation to pay taxes accurately and punctually. Careless miscalculations and computation errors will also be subject to IRS scrutiny. Any discrepancy in an individual’s tax return can incur penalties. Moreover, erroneous entries can also reduce an individual’s tax refunds.

There are tax software programs that could detect and minimize errors in tax returns. However, it is still the taxpayer’s responsibility to ensure that his or her initial numbers are accurate and that names match the tax identification number the Social Security Administration has on record.

Compared to employees of private and public companies, entrepreneurs and freelancers have the sole responsibility of filing and paying their taxes. Consequently, self-employed individuals are the ones who often encounter IRS-related problems. Paying the accurate amount on time is again the best way to avoid penalties and fees. If necessary, it is best to hire a tax expert or a financial counselor who can provide guidance in avoiding costly tax problems.

The IRS also advises self-employed individuals to create an accurate and effective record keeping system and to gain assistance from the agency by subscribing to notifications or correspondence. It is also best to resolve any discrepancies immediately to prevent more serious tax-related problems with the IRS.

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Filing and paying taxes can be an overwhelming and laborious process. However, being unable to pay taxes in full and on time is inexcusable and come with consequences. It is imperative for every taxpayer to understand the basics of taxes and be responsible for his or her clean IRS record.

Tax Tiger delivers high quality and effective tax remedies to protect individuals and businesses from IRS problems. To learn more about the company and its services, visit its official website.

How Can Divorcees Avoid Tax Problems?

A divorce can be a long, drawn-out process that requires legal and personal settlement from both parties. After a marriage has ended, other concerns must be taken into account such as the filing of taxes. To avoid an IRS audit, divorcees must take the time to look into this aspect.

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Some legal counselors suggest that couples filing for divorce must take into account child support claims, the splitting of assets, and payment of liabilities. The help of a divorce mediator or a legal counselor may be needed especially if the couple could no longer see eye-to-eye. In these settlements, the benefits and the payments should be made fair and square as much as possible.

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After the change of status, an individual must be ready with supporting documents that prove the marriage’s dissolution. Having a copy of the divorce decree might make matters easier. However, considering the person as single or married depends on the time when the divorce was finalized. For example, if a divorce settlement has been finalized on December of the current year, the divorcee is now considered single for the succeeding months. The individual may now file as an individual or as head of household.

If a divorce is still being processed, the two parties may still need to file as a married person filing jointly or as a married person filing separately. As long as the decree hasn’t been released, the law considers these two individuals to be still married. At this point, it is also necessary to settle the taxability of alimony, child support, property and retirement transfers. The help of reliable tax lawyers is necessary to iron these details out.

It is safe to cover all bases with regards to taxes to avoid tax problems after a divorce. This is also to ensure that the two parties will be free from unnecessary obligations to the other after the split.

Approaching all tax-related dealings with faith-based philosophy, honesty, and integrity, Tax Tiger has been standing up for clients with IRS issues since 2002. It is a member of the National Association of Tax Resolution Companies and is a trusted name in the industry. Learn more about the company through its official website.

How Can Divorcees Avoid Tax Problems?

A divorce can be a long, drawn-out process that requires legal and personal settlement from both parties. After a marriage has ended, other concerns must be taken into account such as the filing of taxes. To avoid an IRS audit, divorcees must take the time to look into this aspect.

Image source: Theguardian.com

Some legal counselors suggest that couples filing for divorce must take into account child support claims, the splitting of assets, and payment of liabilities. The help of a divorce mediator or a legal counselor may be needed especially if the couple could no longer see eye-to-eye. In these settlements, the benefits and the payments should be made fair and square as much as possible.

After the change of status, an individual must be ready with supporting documents that prove the marriage’s dissolution. Having a copy of the divorce decree might make matters easier. However, considering the person as single or married depends on the time when the divorce was finalized. For example, if a divorce settlement has been finalized on December of the current year, the divorcee is now considered single for the succeeding months. The individual may now file as an individual or as head of household.

 Image source: Divorce.lovetoknow.com

If a divorce is still being processed, the two parties may still need to file as a married person filing jointly or as a married person filing separately. As long as the decree hasn’t been released, the law considers these two individuals to be still married. At this point, it is also necessary to settle the taxability of alimony, child support, property and retirement transfers. The help of reliable tax lawyers is necessary to iron these details out.

It is safe to cover all bases with regards to taxes to avoid tax problems after a divorce. This is also to ensure that the two parties will be free from unnecessary obligations to the other after the split.

Approaching all tax-related dealings with faith-based philosophy, honesty, and integrity, Tax Tiger has been standing up for clients with IRS issues since 2002. It is a member of the National Association of Tax Resolution Companies and is a trusted name in the industry. Learn more about the company through its official website.

Innocent Spouse Relief: An Introduction

What is innocent spouse relief? According to federal law, when joint income tax return is filed by both the husband and wife, both spouses are responsible for the taxes stated. But what if there has been an error in the filing? Will both parties be charged with penalties? 

Under the current tax code, a spouse can be released from direct financial liability, as approved by the IRS. This freedom from responsibility from having to pay tax debts of the other (or estranged) spouse is the innocent spouse relief. However, filing for innocent spouse relief can be tedious and time-consuming. Filing for it is not an assurance that the spouse can be relieved from the responsibility. 

How does a spouse file for the relief of tax responsibility of the other spouse? The IRS will evaluate the applying spouse’s work experience, relationship status, disabilities, the level of involvement in the house, and finances. This evaluation will determine if the spouse can qualify for the relief.

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A taxpayer seeking innocent spouse relief must meet all of these conditions: The understatement of tax is the error of the other spouse. The filing party has no idea when the return was signed. It is unfair for the filing party to be held liable for the tax debt. 

The income tax return is a federal, legal document. This is still important, especially with divorcing parties. When the IRS discovers errors in income tax returns, both spouses will be responsible for paying unpaid taxes and penalties regardless of who made the error. This is the reason, if a party is wrongly charged, it is important to file for innocent spouse relief.

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Tax Tiger offers high-quality tax resolution services to protect its hardworking clients. Visit its official website to learn more about its solutions.