TAX/IRS
IRS Tax Debt
IRS is an agency of the Treasury Department and one of the world's most professional tax administrators. IRS tries to provide quality service to the taxpayers in America, help people to understand tax responsibilities and try to apply the law of tax with reliability and equality. Some people fail to submit their tax documents at the correct time or submit incorrect forms. Delay in submission or incorrect details make a negative impact on their credit rating and leads to tax debt. IRS uses different ways to catch the tax debts. Some of them are -
Importance of credit rating forces tax payers to think about a debt elimination plan. Many agencies provide help to eliminate the tax problems legally and effectively. They also help to save your money and time.
The services include -
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IRS Tax debt
settlement
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Stopping of
IRS payroll levy
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Avoiding IRS
tax levies and tax liens
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Eliminate tax penalties
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Arrange easy payment plans
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Free initial
tax consultation
Offer in Compromise (OIC) is the easiest and most successful way of reducing your IRS tax debt. If you are eligible for the offer in compromise, you have to pay only a fraction of the tax amount you currently owe. Once your OIC is accepted, the IRS will not come back and increase the interest rate or penalties. The tax problem solvers try to minimize the chance of criminal prosecution and forced tax collection by the IRS agencies. They will reconstruct the economic information of the clients in the situation when the customer has lost his tax records and propose many tax installment plans that help the taxpayers to pay their tax in easy installments.
Returns
Tax Return is
the filing of documents containing information of income tax
calculation or other taxes to be paid to a state, local or Internal
Revenue Service (IRS). The tax return comprises of gross income,
deductions, tax credits and tax due. There are three types of forms
are generally used to file the tax return. They are -
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Form 1040 –
for individuals
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Form 1120 –
for Corporations
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Form 1065 -
for partnership
The income
limits for not filing (if the taxable income, after taking all
deductions is zero, then there is no need to file the tax return)
differ along with the age and possible filing status. The limits are
a little higher for citizens 65 and older, so that seniors can earn
a little more before they are required to file.
If the
taxpayer
- is single
and under 65, the income limit before he has to file is $7,950. If
single and over 65, the limit is $9,150.
- is married,
and file jointly, and both spouses are under 65, the limit is
$15,900. If one spouse is 65, the limit’s $16,850. If both spouses
are at least 65, the limit’s $17,800.
Income tax
returns for calendar year taxpayers are due by April 15 of the next
year, or by the following Monday if April 15 is a Sunday.
If you are
unable to pay before the due date:
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File the
return and pay the maximum that you can by April 15 to reduce your
penalty.
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Arrange a
payment plan with the IRS
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Continue to
make payments until you receive the bill.
There are lots
of practical reasons to file tax returns. Filing tax returns and
paying the right amount of tax is good citizenship. In the time of
buying a home or financing a business, copies of filed returns are a
must. Higher education loans also need the same to qualify.
Retirement, disability benefits, medical & industrial insurance and
unemployment compensation are based on the reported income.
Tax Refunds
Tax refund is the amount a taxpayer receives at the end of the
reporting year since taxes were overpaid for that year. After the
required processing, the tax payer will get back that amount. Most
of the time, there is a delay in tax refund from IRS.
The main reasons for delayed tax refunds are-
If a tax refund check is returned as undeliverable, IRS will try to get a correct address for the taxpayer. If successful, the Tax Refund check is issued again. If new address is not available, the tax refund check is returned to the U.S. Treasury. IRS’s policy is to credit any amount due to returns filed during the succeeding three years. But if no returns are filed, the account lapses and is removed from the active master file. The IRS gives the tax refund only after it ensures that the tax returns are accurate. If you file entire and accurate tax return and you are owed a refund, you will get it in the following manner.
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If you file electronically and select to receive refund using direct
deposit, you will get it within 2 weeks after the date of
acceptance.
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If you file electronically and you receive your refund through
U.S. Mail, you will get it within 4 weeks after the date of
acceptance.
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If you file using U.S. Mail, you will get it within 6 weeks from
the date the IRS receives your return.
The taxpayer will get the “IRS e-file Refund Cycle Chart” from the
authorized web site of the IRS. It takes a minimum of 3-4 weeks to
get back your tax refund. Improvements in technology help the
taxpayers to do tax refund processing online. By giving the Social
Security Number or IRS unique Taxpayer Identification Number, Filing
status and refund amount one can get his refund status. Many tax
service teams provide efficient service to the taxpayers to get back
their refund quickly and easily. Many of the agencies arrange it
through refund loans which is also known as Refund Anticipation Loans.
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