Filing for an extension on a tax return does not extend the deadline to pay income taxes.
Burbank, CA (PRWEB) January 28, 2013
CTR’s Bradbury tax attorney is pleased to offer new tips for taxpayers that have unpaid income taxes. The IRS has strict penalties and interest for those individuals who fail to pay their income taxes. CTR provides tax relief services in all fifty states and has helped thousands of individuals get relief from their tax debt. The company is offering these tips to help those individuals who are unsure of what to do in a stressful financial situation.
Taxpayers who have lost their jobs, gone into foreclosure or had other unforeseen financial occurrences happen during the tax year can suddenly have a difficult time paying their income taxes. Filing for an extension on a tax return does not extend the deadline to pay income taxes. When a taxpayer misses the tax deadline, the IRS will start applying penalties even if an income tax return has been submitted. If, for example, a California resident had a Brea tax attorney or CPA to prepare and file their income taxes, they would still be penalized for failing to pay. The failure to pay penalty is 0.5% each month the unpaid taxes are not paid, plus interest. This penalty is compounded each month until a taxpayer is facing a maximum 25% penalty for failing to pay.
A taxpayer who has failed to pay their taxes should take steps to remedy the situation, according to CTR’s expert tax team. Once the IRS discovers that there is a tax debt owed, they will begin to make collection efforts. The agency will first send a notice of a federal tax lien. A lien places a hold on a taxpayer’s bank accounts and assets to secure the government’s debt. Tax liens ruin an individual’s credit rating, and stay on a credit report for up to seven years. It is possible to have a tax lien removed; for example, a California resident contacted CTR’s Burbank tax attorney and negotiator service and was able to get a tax resolution plan with the IRS.
CTR also warns that once a tax lien is placed, the IRS will next send a notice of levy if the taxpayer takes no steps to become compliant with their taxes. A tax levy is a seizure of assets and income. The IRS can take bank accounts, paychecks, homes, and businesses, depending on the amount of the tax liability. The IRS will wait thirty days after sending a notice of intent to levy, after which the taxpayer will have a very difficult time having a levy removed. It is possible to have a levy removed; for example, a California taxpayer who recently contacted CTR’s Calabasa tax attorney and CPA team, quickly had an appeal filed for the tax levy. CTR then helped him negotiate a tax settlement plan that allowed him to become compliant.
CTR suggests all taxpayers who owe unpaid taxes to the IRS take steps immediately to remedy the situation. The IRS collections agents do not have to wait on the legal system before they begin taking action against individuals. Taking immediate steps to become compliant is the best way CTR recommends handling tax debt.
CTR offers tax debt resolution and tax services for individuals and businesses across the United States. The company uses a three step program to create personalized strategies to help taxpayers settle their IRS debt. The company offers many services, including: state and federal tax debt resolution, IRS audit defense, tax preparation and bookkeeping.
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