For many individuals who owe back taxes to the IRS, the culprit behind the tax debt is the estimated tax payment. Or, more accurately, it is the inability to make sufficient estimated tax payments that causes a tax debt when a tax return is filed. For those who are self-employed or business owners,
North Highlands, CA (PRWEB) August 16, 2008
As part of her continuing effort to help taxpayers who are struggling to repay their federal tax liabilities, tax attorney Roni Deutch has added a series of advice articles to her law firm's website.
"The Internal Revenue Code is long and confusing," claims The Tax Lady Roni Deutch. "However, it is important for taxpayers to be educated on the IRS and their collection agencies when dealing with owed back taxes."
Below are excerpts from four new articles that were recently added to RoniDeutch.com. To read the full text, click on the hyperlink titles.
"For many individuals who owe back taxes to the IRS, the culprit behind the tax debt is the estimated tax payment. Or, more accurately, it is the inability to make sufficient estimated tax payments that causes a tax debt when a tax return is filed. For those who are self-employed or business owners, "estimated tax payments" is likely a familiar, yet distasteful, term. Because self-employed individuals do not have an employer withholding payroll taxes for them, they must submit tax payments to the government on their own.
The IRS considers the income tax a 'pay-as-you-go' tax. Meaning, generally speaking, whenever a taxpayer has income, the taxpayer should pay tax. Wage earners see this principle in effect whenever they receive a paycheck with the ever-present tax withholdings."
"Have you ever dealt with an IRS representative who is less than helpful? This is a frustrating predicament for taxpayers that just want to put their IRS tax debt behind them so they can move on with their lives. However, it is easy to forget that the IRS is staffed by human beings with all the common foibles of ordinary people. Even though they may not always demonstrate them openly, IRS representatives often allow their own emotions and personal problems to creep into their work. Furthermore, IRS employees have varying levels of competency and skill. If you have been working with the IRS to settle your tax liabilities and feel that you have been treated unfairly or incompetently, you may want to request the assistance of the Taxpayer Advocate Service.
The Taxpayer Advocate Service (TAS) describes itself as 'an independent organization within the IRS.' The service is free, but not everyone who owes back taxes will qualify for TAS assistance. A taxpayer normally must be experiencing some kind of economic burden or delay imposed by the IRS. If you believe that you fit this criteria, or if you believe that an IRS procedure is just not functioning properly, you may want to consult with the TAS by calling 1-877-777-4778. You will need to give them your basic contact information and describe to them the actions you have taken to try to resolve your tax debt. If they decide that they can help, you will be given a case number, and you will be contacted by your assigned Case Advocate usually within a week or so. The individual Case Advocate will work as a mediator between you and the IRS."
"The IRS offers three (3) different payment options when it comes to the Offer in Compromise:
1) Lump Sum Cash Offer
2) Short Term Periodic Payment Offer
3) Deferred Periodic Payment Offer
However, the difference in these payment options is not solely the difference in how the Offer in Compromise is to be paid. Rather, each 'payment option' actually impacts the total amount the taxpayer will pay to the IRS."
"The Internal Revenue Service (IRS) has implemented procedures for taxpayers to request a reimbursement of the fees charged by a bank against a taxpayer for processing a bank levy when the bank levy was issued erroneously by the IRS. Reimbursements are limited to $1,000.00 and must be claimed within one year of being incurred.
As you may know, the IRS has the right to issue a bank levy on an account that bears the name of a taxpayer who owes IRS back taxes. A Notice of Levy is sent to the taxpayer's bank and it attaches to all accounts in the name of the taxpayer whether a sole or joint account. The bank is then legally obligated to honor the IRS levy that freezes the funds on deposit in the account. The bank cannot allow anyone access to the frozen funds for 21 days from the date of receipt of the levy. This holding period allows time to resolve any issues about account ownership and collectability. After the 21 days have elapsed, the bank must send the money plus interest, if it applies, to the IRS if the levy has not been successfully released."
About Roni Deutch, A Professional Tax Corporation
Roni Deutch, A Professional Tax Corporation is a nationally recognized law firm that has been helping clients find solutions to their back tax liabilities for seventeen years. To find out more about the law firm or its IRS tax relief services, visit their website at RoniDeutch.com or call 1-888-TAX-LADY. To learn more about The Tax Lady Roni Deutch you can visit her blog or YouTube profile.
Roni Deutch, A Professional Tax Corporation
877-232-8477 Ext. 1914