COMMON TAX PROBLEMS
If you have a tax problem, Tax Muscle has a solution. Receiving a notice or letter from the IRS is not a condemnation, but please do not disregard it! Simply acknowledging it does not suggest that you must accept the consequences. Every taxpayer has rights, and there are several ways to challenge an IRS decision. Regardless of the severity of your tax problem, and whether you are an individual or a business, we can help you resolve it without falling prey to the traps and miscalculations made by many taxpayers during IRS confrontations.
Tax Muscle has a resolution for practically every tax problem. Our tax debt resolution methods will help keep your assets protected, alleviate your tax debt, and possibly save you a substantial sum of money in the process.
Are you affected by any of the following common tax problems: wage garnishment, delinquent payroll taxes, liens and levies, penalties and interest, state tax problems, or unfiled tax returns? If so, then the tax experts at Tax Muscle can facilitate a beneficial resolution for you, even if the IRS has already initiated collection action. Take the first step towards contentment and freedom from tax debt by contacting us today.
For tax help with any IRS problem, call Tax Muscle today at 855.829.6875 to receive your free, 15 minute tax debt consultation.
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Failure to respond to repeated notices and warnings will likely compel the IRS to employ one of their most forceful tax collection tactics - wage levy, more commonly referred to as wage garnishment. Wage garnishment is one of several methods available to the IRS to collect your tax debt without you paying them voluntarily. Here's how it works: Your employer is contacted by the IRS and becomes legally obligated to take a portion of your wages and remit it to the IRS in satisfaction of your tax debt. How much of my wages can the IRS garnish? Based on the prevailing guidelines, as much as 80% of your wages can be garnished until your tax liability is completely satisfied, which can significantly impair your comfort of living. Wage garnishment is a potentially damaging collection action that should not be underestimated.
Delinquent Payroll Taxes
Failure to withhold and deposit payroll taxes can have serious consequences for employers and, consequently, their employees. Employers may be subject to criminal and civil sanctions for willfully failing to deposit payroll taxes. Employees suffer because they may not qualify for social security, Medicare, or unemployment benefits when employers do not report or pay employment and unemployment taxes. The IRS is particularly hostile in their actions to collect on delinquent payroll taxes. They are not only limited to enforced actions against the assets of the business, but can also seek remuneration from directors, officers, owners, members, shareholders, and certain employees. The bottom line is that anyone responsible for the collection or payment of withheld income and payroll taxes who willfully fails to collect or pay them can be held personally liable for the tax debt and face severe penalties and possible imprisonment.
Liens and Levies
If you neglect or fail to pay a tax debt, the IRS can file a federal tax lien against you. Federal tax liens are filed with the County Clerk of your residence or place of business. The lien attaches to all of your assets (such as property, securities, and vehicles) and to future assets acquired during the duration of the lien. Once the IRS files a Notice of Federal Tax Lien, it will appear on your credit report and may limit or completely obstruct your ability to obtain credit. The lien also attaches to all business property and all rights to business property, including accounts receivable. Even if you file for bankruptcy, your tax debt, lien, and Notice of Federal Tax Lien may continue after the bankruptcy.
Another enforced action that the IRS can take to collect a tax debt is to levy your financial assets and various sources of income. For instance, the IRS can levy financial property that is yours but is held by someone else (such as your wages, retirement accounts, dividends, bank accounts, and more). If the levy takes the form of a wage garnishment, then up to 80% of your wages, including commissions, bonuses, etc., can be forcibly withheld by your employer under the direction of the IRS until your tax debt is completely satisfied. If you have received a notice of lien or levy, then we can provide help, but timing is imperative. Please do not delay!
Penalties and Interest
If the IRS determines you liable for a back tax debt, they will assess penalties and interest on the outstanding balance. This can cause your original debt to explode to an unwieldy amount over a very short duration of time. The most commonly used of the broad set of penalties that the IRS has at its disposal are for failure to file, failure to pay, and fraud. These penalties can generally grow to as high as 25 percent of the total balance owed, but depending on the type of penalty assessed and the inclusion of any additional interest, it is certainly possible that they become even larger.
State Tax Problems
Individuals and businesses facing IRS problems often have to contend with associated state tax problems as well. States have their own unique tax laws and collection processes that are totally independent from those of the IRS. Even so, several states rely and act upon information obtained from the IRS. In many instances, states will prove more hostile than the IRS in their collection actions, moving to collect even faster than the IRS does.
Unfiled Tax Returns
From the viewpoint of the IRS, failure to file a required tax return is tantamount to tax evasion, a criminal infraction punishable by fine of $10,000 and one year of imprisonment for each tax year to which such failure applies. As long as you meet the prescribed requirements to file, you are obligated to do so, regardless of whether you would owe tax or be entitled a refund. Although it is certainly within the authority of the IRS to impose criminal prosecution on taxpayers who fail to file their tax returns, a long-standing practice of the IRS has been to resist that course of action, provided that the taxpayer voluntarily files, or makes arrangements to file, before being notified that they are under criminal investigation. For whatever reasons that you have unfiled tax returns, your foremost directive in the resolution of your tax problem is to file them. Becoming compliant with your tax obligations is an absolute necessity before the IRS will even bother to address any resolution offer. As challenging an assignment as it may seem, the experts at Tax Muscle have bountiful experience in helping people become IRS compliant, forging the way to contentment and financial freedom.