If you find yourself in a situation where you cannot pay your tax bill in full, you have a few options of what to do. But the first thing you should do is file your tax return or request an extension of time to file by May 17, 2021 even if you cannot pay it all. If you do not file your tax return or request an extension by May 17th you may face a failure-to-file penalty.
The challenges brought on by the events of 2020 have affected everyone and have affected many aspects of life. For several, this has included taxes. Some people required a reprieve on IRS Installment Agreements due to Coronavirus layoffs and the inability to pay. Others rushed to file tax returns to obtain a stimulus payment or CARES Act relief. If you have had to contact the IRS since March of 2020, you know that the IRS was not immune to the challenges the World faced in 2020.
Yes, the IRS can take as much as a 15% cut in your Social Security to satisfy a tax debt. In July of 2000, the Federal Payment Levy Program not only allowed the IRS to dip into social security benefits, but also: Federal employee retirement annuities, federal payments made to you as a contractor/vendor doing business with government, federal employee travel advances or reimbursements, and some federal salaries.
As we enter into the holiday- of the most popular times to give and receive gift cards - scammers are using the season of giving to their advantage. Scammers often call or email Taxpayers and demand that they pay a phony tax bill with gift cards. Scammers also use compromised email accounts to send emails asking someone to purchase gift cards for friends, family, or co-workers.
Large, nationwide tax resolution services are often advertised as a guaranteed way to win big savings on tax debts owed and for anyone facing IRS tax issues, can be very tempting. But, you know what they say…. If it sounds too good to be true, then it probably is. We often refer to these outfits as “Fly-By-Night” Tax Resolution Providers. It seems as though every time we turn on the radio, a new outfit is being advertised, and it seems as though many disappear as quickly as they popped up, but not before taking payment from Taxpayers for work that is never done.
Are you a newly married couple? We can imagine that if you were married in 2020, your nuptials were full of surprises, last minute changes, and more. Because we would hate for you newlyweds to run into any more surprises and changes, we wrote this blog for YOU! Though most people equate the “work” that comes with a wedding to be on the front end in the planning, there are several things you need to do after you say “I do”, and addressing your new tax responsibilities is one of them. Here’s everything you need to know about how marriage affects your taxes: