Back Taxes Archives - Page 5 of 7 - Professional Tax Resolution

Celebrity Back Tax Problems and Other Summer Tax Fun!

Back Taxes? Fraud? Summer Reading......

It is very common to read about a celebrity or affluent person who owes the IRS a large amount of money in back taxes.  Believe it or not, some people have even taunted the IRS on social media pages in regards to stealing and defrauding the government. Here are some hot stories in the news media this summer that are a good read:

First off, it seems Courtney Love has landed herself in the news again. It is not good publicity either! The singer reportedly owes the Internal Revenue Service more than $260,000 in unpaid back taxes. It has been reported that the IRS filed a tax lien on Courtney Love claiming that she needs to settle an outstanding balance of back taxes from 2009 to 2011. This is not the singer’s first time owing back taxes either. In 2009, she had to pay over $320,000 for a back tax bill from 2007. These are some pretty steep tax bills over the years. Luckily, her life has not been dull and she is coming out with her memoir this fall to help finance her back tax tab!

Another hot summer story concerns a Florida lady by the name of Rashia Wilson. Wilson named herself the Queen of IRS Tax Fraud and was recently sentenced to 21 years in prison after stealing millions from the IRS. According to court documents, Rashia Wilson constructed a plan were she used fake ID’s and stolen social security numbers to collect millions in fraudulent tax refunds.

Rashia grew up in poverty, but then after coming up with her plan and implementing it in 2010, she spent the government’s money lavishly. Rashia paid top dollar for high end automobiles, expensive jewelry and designer clothes. She even spent $30,000 on her daughter’s first birthday party. As if this extreme spending from money that was not even hers is not bad enough, she then flaunted the theft on her Facebook page by posting pictures of herself with bundles of stolen money. This was probably not her best move!

After a multi-agency investigation which involved the IRS, the Tampa Police Department, the US Postal Service and the Hillsborough County Sheriff’s Office, Wilson was arrested on numerous counts, including tax fraud. On a side note, Rashia also collected food stamps during this time period. The judge sentenced Rashia to 21 years in prison along with paying a steep restitution fee!

If you have tax questions or tax debt you are unable to pay, our tax settlement professionals are happy to discuss your tax resolution options free of charge. For more information about our services, visit us today at https://professionaltaxresolution.com/ or call us at 877.889.6527. With over 16 years in the business of resolving tax debt, we have a thorough understanding of tax law together with the experience to know which settlement option will be the best fit for your specific set of circumstances.

Help – Facts to File and Pay Back Taxes

Filing and Paying Back Taxes

Help with Back Taxes

 Do you owe previous years taxes? Here are some simple facts for filing back taxes. Each year most people file their individual tax returns or pay all their back taxes by April 15th. First of all, if you have not filed your return(s) you will have additional interest and penalties to pay. However, if you owe back taxes and need help, an Enrolled Agent or Certified Public Accountant (CPA) can assist you. Here are some steps you can take to help you pay and file your back taxes.

5 Helpful Tips for Filing and Paying Back Taxes

  • Collect all of your documents together.  If you are missing any copies of previous tax returns simply ask the IRS for copies, it is free.
  • Select a Tax professional.  If you feel overwhelmed by the back taxes or unsure how to proceed, look for a professional that has the knowledge and experience to help you handle involved tax issues. It is recommended to search for an Enrolled Agent or a Certified Public Accountant. They will have the background work experience in negotiating a wide range of tax settlement options with the IRS.
  • Keep in mind the IRS can be very relentless in collecting owed debts. The Internal Revenue Service can resort to wage garnishments, tax liens, bank account levies, and other approaches to settle back taxes. It is important to be informed on the statute of limitations for your refunds, debt collections, and IRS audits.
  • Promptly send your back taxes to the IRS. Even if you are not able to pay your back taxes immediately to IRS, you have other tax settlement options to stop a tax lien, levy, repossession, or wage garnishment. Keep in mind that the IRS has different  tax settlement options, such as an offer in comprise or installment plan, which can help you pay your back taxes over a long period of time. You should file late tax returns on paper, make sure that you are mailing them to the correct Internal Revenue Service, and be sure to send them via certified mail. Keeping good records is also important. Another option is for you to take the tax return in person your local IRS office.
  • Prepare for your upcoming tax plans. If you owe more in back taxes than you can afford to pay or if you are self-employed, an Enrolled Agent or CPA can work with you on your tax situation.

If you have tax debt you are unable to pay or any other questions our tax settlement professionals are happy to discuss you’re tax resolutions free of charge. For more information about our services, visit us today at www.professionaltaxresolution.com. With over 16 years in the business of resolving tax debt, we have a thorough understanding of tax law together with the experience to know which settlement option will be the best fit for your specific set of circumstances.

For more information about our tax debt resolution services visit us at www.professionaltaxresolution.com. Contact us by phone at 877-889-6527 to receive a free, no obligation consultation.

 

Avoid IRS Penalties – Settle your IRS Tax Debt – Tax Settlement Tips

If you have been disregarding a notice from the IRS, tax filing deadlines, or ignoring tax liabilities, it is probably time to think about filing those back tax returns and paying outstanding tax balances. Even though the Obama Administration’s 2012 Budget request for increased funding for the Internal Revenues Service was not approved, the ability of the IRS to enforce tax compliance has improved over time. System modernization and software improvements have made it harder for a taxpayer to stay under the IRS radar by making it easier for this powerful collection agency to track down individuals who fail to file tax returns or owe back taxes.

When tax amounts are owed over an extended period of time, the financial burden can become overwhelming due to the continued accumulation of penalties and interest. It is not unusual for these additional amounts assessed by the IRS to total as much as 50% of the original tax amount owed.  The financial consequences of failing to file a tax return or owing back taxes are outlined below:

  • Failure to File Penalty The Failure to File Penalty is calculated on the tax balance due as shown on the tax return. This penalty is 5% of the tax amount due for each month the return is late, with a maximum penalty of 25%. Although it is seldom invoked, a taxpayer who fails to meet a filing deadline can also be charged with a misdemeanor, which carries a maximum fine of $25,000 and up to a one-year prison term.
  • Failure to Pay Penalty The Failure to Pay Penalty is calculated on the tax balance due as shown on the tax return. These penalty charges are assessed at the rate of 0.5% for each month that the tax balance is not paid in full, beginning from the original April 15th filing deadline. The Failure to Pay Penalty has no limit on the maximum percentage amount that can be assessed.
  • Interest Interest is charged on the balance of any tax liability for each day the back tax balance is not paid in full. The interest rate, which is variable and set quarterly, is currently 4%.

With the downturn of the economy, even more taxpayers have missed filing deadlines or have found themselves with outstanding tax balances that they are unable to pay. When these tax debts or unfiled tax returns are left unresolved, the IRS will initiate collection activities to enforce compliance and collect the tax amounts owed. Unpaid tax debt or unfiled tax returns will result in collection efforts by the IRS. These collection activities begin with the assessment of interest and penalties and are followed by more aggressive actions including the filing of tax liens or tax levies and the initiation of wage garnishments. On a positive note, there are many tax settlement options available to taxpayers who are unable to pay the tax balances they owe. The important thing is to begin the resolution process immediately before penalties and interest accumulate further or the more severe consequences of owing the tax debt are imposed.

A licensed tax professional will be familiar with all of the tax settlement alternatives available and can be invaluable asset to a taxpayer who is the subject of collection attempts by the IRS. If you have failed to meet tax filing deadlines or have an unresolved tax liability, our experienced tax professionals can help you become tax compliant. For more information about our tax settlement services, visit www.professionaltaxresolution.com. The members of our staff have a thorough understanding of tax law together with the experience to know which tax settlement option will most effectively resolve your specific back tax issues. Contact us today at (877) 889-6527 or info@protaxres.com to receive a free, no obligation consultation.

 

IRS Back Tax Tips – Help with Late Tax Bills – Pay Your Tax Debt

Did you receive an IRS notice that you owe back taxes? While owing money can be a big worry, ignoring the problem will only make things worse. There are options to pay your tax debt, even if you can’t do it all at once.

If you need help with tax resolution because you owe back taxes, you can take advantage of different methods of payment or request that the payments be broken up into installments. Here are some tips:

  • A late tax bill from the IRS is expected to be paid promptly, including the taxes owed, penalties, and interest. You may want to get a loan so you can pay it in full to avoid making installment payments if you do not already have the money ready. A bank loan could have a lower interest rate than what you would have to pay in additional interest and penalties.
  • Tax bills can be paid via credit card. Your credit card could also have a lower interest rate than what you would have to pay in additional interest and penalties.
  • Tax bills may also be paid through checks, money orders, cash, cashier’s checks, or electronic fund transfers.
  • If you are unable to pay in full, you may be eligible to request an installment agreement between you and the IRS. The agreement would break up the amount due into monthly installments. Make sure that your required returns are all filed and your estimated tax payments are current.
  • You can request installment payments whether your tax bill is over or under $25,000. You should be informed within roughly 30 days if the IRS approves or denies your request, or if they need more information.

If you receive a late tax bill, our experienced professionals can help you resolve your back tax issues. For more information about our tax debt resolution services, visit us today at www.professionaltaxresolution.com. Contact us by phone at (877) 889-6527 or by email at info@protaxres.com to receive a free, no obligation consultation.

Back Taxes and Small Businesses -Tips to Avoid Tax Debt

Back Tax Issues for Small Businesses

What back tax issues are commonly encountered by small businesses?

Due to the complexity of tax law, many small business owners do not know how to use available deductions to reduce their lax liability and therefore end up with tax balances that are more than the business can afford to pay.

With the current state of the economy, many small businesses have cash flow problems. When this is the case, they may use available cash to fund operations rather than making tax payments.

What types of tax payments are small businesses responsible for?

Small businesses are responsible for paying sales taxes (often to multiple states), payroll taxes and quarterly tax payments.

What are the consequences when small businesses do not make their tax payments on time?

The IRS has the power to impose harsh penalties when small businesses fail to meet their tax deadlines. The reason for the delinquency is usually not taken into consideration.

One of the harshest penalties is imposed when a small business fails to meet its payroll tax deadlines. The penalty is called the Trust Fund recovery Penalty and is equal to 100 percent of the payroll tax balance. This penalty does not take into account the reason for the delinquency and can assign blame to anyone who was, in any way, responsible for the payroll tax debt.

What solutions are available to small businesses with back tax issues?

The best way for a small business to deal with a back tax issue is to face it head on rather than to wait for the liability to increase due to the compounding of interest and penalties.

Many states offer voluntary reporting programs and, while no such program is currently offered by the IRS, they due offer numerous tax debt settlement options.

While small business owners may rationalize that they will clear up their tax debt issues down the road when business is more profitable, this is usually not a wise decision. The IRS is more likely to approve a settlement agreement when business income and profits are low, not to mention that he legal and financial consequences of not addressing a back tax issue can be severe.

Due to the complexity of tax law, especially as it applies to small businesses, the best approach to resolving back tax issues is often to enlist the help of a qualified tax professional.

If you are a small business with unresolved tax debt, our experiences professionals can help you resolve your back tax issues. For more information about our tax debt resolution services, call us by phone at (877) 889-6527 to receive a free, no obligation consultation.