TaxAudit Blog

Tag: tax debt

Chalkboard with Debt written all over it being erased

What if your spouse filed a return and failed to report income or overstated deductions – and you had no idea? This is where Innocent Spouse Relief comes in.

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Money dissolving in a person's hand

The amount of tax debt relief a person can receive depends on their financial situation. Many options are available to those who have outstanding tax debt.

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Wage Garnishment written on a notepad

If you are facing wage garnishment or are worried that the IRS may enact this levy on your wages, continue reading to learn more about it and how to stop it.

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Tax Relief written on a notebook

Our service costs generally range between $1,000 and $5,000, depending on multiple factors including the complexity and the estimated time it takes to resolve.

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Man looking stressed about taxes

Yes, tax relief is available for state taxes. Most states have put programs into place to assist taxpayers who are unable to pay their tax balance due in full.

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Pennies stacked on dollar bills

We will be talking about whether the “pennies on the dollar” claims for tax debt relief that you hear on radio or late-night TV ads are real.

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Person typing on calculator with tax graphics overlayed

An Audit Reconsideration requests the IRS reopen a previously closed audit case. It can be requested after the audit occurrs and the tax remains unpaid.

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Business owners looking at receipts

Yes, Tax Debt Relief is available for businesses. Read more about tax debt issues businesses face such as Employment Tax Issues, Trust Fund Taxes, etc.

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Tax Professional

Let's talk about how the Tax Debt Relief process at TaxAudit works so you can decide if our company is the best for you.

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Woman worried about tax debt

Do you have tax debt? Would repaying this debt cause you financial hardship? If so, you may be eligible for Currently Not Collectible status through the IRS.

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Tax Returns, plant, and $100 bills laying on a desk

What happens if your spouse overstated the deductions claimed on the return or substantially understated the income?  Are you still liable for the tax due?

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Tax Relief written on a Calculator

Fortunately, there are a myriad of tools available for taxpayers who want to tackle their tax debt issues and dispute the collection actions taken by the IRS.

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Woman thinking about Tax

An IRS Offer Compromise is an attempt to settle your tax liability with the IRS for less than what is owed. There are three types of Offers in Compromise.

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Woman reading a letter and holding her phone

Notice CP14H is issued by the IRS to inform you of your unpaid shared responsibility payment that is due and to request that payment. How should you respond?

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Man on phone while looking at a letter

IRS Notice CP21E informs taxpayers that an audit was recently done on their tax return and the IRS determined that those changes resulted in additional tax due.

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Debt Relief Just Ahead sign

The taxpayer owed over $30,000 in back tax debt that she couldn’t afford to pay. Not knowing what to do, the taxpayer contacted TaxAudit for help.

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Man reading a letter

You just received an IRS Notice CP90 - Intent to Levy and Unpaid Taxes - in the mail. Don't panic. Let's walk through the letter and determine your next steps.

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Man reading a letter and laptop computer

IRS CP22E notice is the result of a recently completed audit. Because of the changes made to your tax return during the examination, you now have a balance due.

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IRS displayed by gold blocks

If you have a pending tax bill, putting the IRS and a bond payment together might be what works for you. How can a bond payment help you with the IRS? 

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Picture of

Thirty days from the date of the IRS Notice CP90, the IRS has the right to begin taking assets. This can include bank accounts, wages, and retirement accounts.

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Man at desk with calculator and interest rate graphic

The IRS will calculate your interest and penalties daily and add them to the amount of tax debt you owe. Tax debt increases each day at an annual rate of 7.25%.

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Need Help? and Taxes written on sticky notes on top of tax forms

Rest assured that there are extensive resources available to help a taxpayer who owes more taxes than he or she can pay. Let explore some options.

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Woman and Man drinking coffee

The Department of Treasury is authorized by the U.S. tax code to withhold part or all of a taxpayer’s Federal tax refund to pay past-due debt of $25 or more.

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Woman Reading Letter

An IRS Notice CP49 is a letter from the IRS informing you that they used all or part of your tax refund to pay a past-due tax debt that you have.

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Man reading a letter

An IRS CP501 is an official notice from the IRS Collections Unit that is sent to taxpayers to inform them that they have an outstanding debt.

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Handcuffs laying on a 1040 form

There are many ways taxpayers can deal with getting their tax debts settled but the best path for each taxpayer depends on the circumstances of their case.

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New York Tax title on a black book

Even though the amount you owe the State of New York Taxation Department seems overwhelming in terms of your ability to pay, there are some options open to you.

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Taxes Due written on a note

The IRS wants to get paid but it understands a lot of folks cannot pay in full right away, so the IRS created several ways to work with taxpayers who owe money.

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Payroll Taxes written on paper with office supplies in background

Falling behind on your California payroll tax payments effects not only your employees, but also on your business operations as the EDD imposes penalties.

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Puzzle with missing piece - money shown where piece is missing

If the IRS hasn't debited your accound payment, the first step is to contact your bank to see if the payment has been taken from your account.

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Payroll Taxes written on 2 wooden blocks

Fortunately, the short answer to the original question is yes, Illinois state payroll tax debt can quite possibly be reduced.

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Payroll Taxes written on notepad with green background

The IRS has the power to impose some very strong penalties for businesses that fall behind in their obligations to make the scheduled payroll tax deposits.

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California Taxes written on a notepad

An Offer in Compromise may help certain taxpayers who cannot pay their tax debt to the California Franchise Tax Board in full. Let's review the requirements.

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Payment Plan

The IRS has established payment programs to allow a personal or business debt to be paid off over an agreed period of time. Here's how to set up a payment plan.

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Woman Reading Letter

Taxpayers receive an IRS CP503 because they have an unpaid tax debt. This is the 2nd notice the IRS sends taxpayers that they have an outstanding balance due.

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Installment Agreement on a Clipboard

You can indeed arrange IRS payments. You can negotiate a plan with the IRS to pay your debt off in either a short-term or long-term series of installments.

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Wage Garnishment written on Paper and Gavel

Can you negotiate to avoid a wage garnishment before it starts? Can you negotiate the amount of the wage garnishment? Let's explore the answers.

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Woman Doing Financial Paperwork

You owe money to the IRS and you can’t pay it all off right now. Let's explore different payment plan options based on your tax situation.

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Payroll Taxes

The IRS treats payroll tax debt seriously. Any employer or employee whose job it is to collect and pay the taxes, but willfully fails, can be held responsible.

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Offer in Compromise

The IRS has an Offer in Compromise program to allow qualified taxpayers settle their tax debt for less than the full amount owed. Here's what you should know.

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Woman looking at debt letter

A taxpayer can seek relief from a spouse's tax burden by applying for the Innocent Spouse program or the Injured Spouse program, depending on the circumstances.

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Man looking at computer with a worried look on his face

The IRS has a fixed amount of time to try to get you to pay your tax debt. This fixed period is known as the “statute of limitations,” which generally 10 years.

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blank check and a pen

Yes, the IRS does offer payment plans to those taxpayers who owe taxes. The IRS offers a series of payment plan options for those who need more time to pay. 

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refund written with blocks

If the IRS is taking your refund, sometimes you need a qualified tax professional who understands IRS collection procedures to intercede on your behalf.

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tax written in blocks with money bags in the background

As the person wrapping up your loved one’s financial affairs, you know at the very least you will need to file their final individual income tax return.

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Levy written on the calculator

Communicating with the IRS to work out a payment plan, put a hold on your account, or even negotiate a lesser amount due may help delay or avoid the IRS levy.

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Tax Relief Professionals at TaxAudit

TaxAudit specializes in tax relief help, and we are so confident in our ability to help taxpayers navigate tax debt - we believe we have it down to a science.

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TaxAudit's Tax Debt Relief Team

TaxAudit provides Tax Debt Relief services that make dealing with the IRS or state less stressful. We know the the laws regarding taxes and tax debt collection.

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Business Owner Looking at Receipts

There are many options for managing your small business tax debt. A tax resolution specialist from TaxAudit can guide you in choosing the best approach.

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Tax Relief Professional

If you have a large tax bill, figuring out your options for getting out of tax debt can be stressful. Thankfully, there’s a proven approach you can follow.

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Pencil Pointing to

One way to find out how much money you owe the IRS is to use the IRS Online Account tool, which allows you to view helpful information about how much you owe.

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Worried Woman

If you haven’t received a notice from the IRS, but think you might owe money to the IRS, you can also utilize the IRS' Online Account tool.

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Concerned couple looking over finances

Generally, the IRS has ten years from the date tax is assessed to collect a delinquent tax liability. However, the answer is not that straight forward.

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Pay your tax bill

What a satisfaction it is saying goodbye to old debts. There are several options available to taxpayers who want to make a payment for back taxes to the IRS.

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Question Mark

Knowing whether you are liable for back taxes owed by your spouse depends upon a variety of factors. Let's discuss the various aspects of spouse liability.

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Man holding sign saying HELP!

When a taxpayer receives a collection notice from the Internal Revenue Service, their typical first reaction is one of panic but it doesn't have to be scary.

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Jar with coins in it that says Tax Pay

The IRS can attempt to collect unpaid taxes for ten years from the time the tax was assessed. The IRS can try to collect the tax in a variety of ways.

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Tax Refund Check

If you owe the IRS back taxes, don’t start spending your refund before it arrives. The IRS can levy or take your refund and apply it to your tax debt.

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woman distressed about tax bill

A person may be relieved of paying some or even all of the tax, penalties, and interest on a tax debt if they meet the conditions for Innocent Spouse Relief.

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Debt Burden Cartoon

Yes, there are legitimate tax relief companies that can help you reduce your tax debt. However, there are scam companies as well. Learn what to look out for.

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Tax Deadline written on July 15th

With the July 15th tax deadline approaching, here’s what you need to know. (1) If You Need More Time, You Can Still File for an Extension (2) Pay What You Owe

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Wage Garnishment Button on a Keyboard

When you enter into a payment plan with the IRS, known as an Installment Agreement, the IRS will release an active wage garnish order.

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new plant growing out of coal

In 2011, the IRS launched the Fresh Start program and has since expanded the program in the hopes of assisting more taxpayers who carry federal tax debt.

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Man holding sign saying Stimulus Checks

Generally, yes. If you owe back taxes or have a payment agreement with the IRS, you will still receive a stimulus check if you are eligible to received one.

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woman distressed about tax bill

Thankfully, for those who owe federal income taxes on their 2019 individual income tax return or are on the hook for prior tax years, help has arrived.

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Wage Garnishment

The IRS may collect federal taxes that are due by garnishing (levying) a taxpayer’s wages. The IRS will notify your employer to begin garnishing the wages.

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Four jars with money and plants growning

The Fresh Start program is designed so that taxpayers pay their debt in full within six years, and without a serious financial burden being placed upon them.

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IRS Installment Payment Plan

Yes, it is possible to pay taxes in installments. For many people, the process of applying for an installment plan with the IRS may not be difficult.

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Cash with a metal chain and lock wrapped around it

Two words: almost anything. Wages, retirement accounts, bank accounts, vehicles, houses, furniture, and even passports are all fair game.

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Owe Taxes

No matter the cause of each person’s tax debt, there are a number of different programs offered by the IRS to help taxpayers get back into the good books.

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Book with California Taxes written on the cover

Options are available to those who cannot pay their taxes in full by the deadline. A good line of communication with the CA Franchise Tax Board is critical.

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Man with tax burden

Having a tax bill is not a situation anyone wants to be in. Fortunately, there are ways to deal with tax debt owed to the IRS. Let's explore a few solutions.

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wooden house and gavel

The answer to this depends on your particular financial circumstances, how much you owe the IRS, and why you owe them money in the first place.

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1040 tax return with Passport and $100 bill

If certified by the IRS to have seriously delinquent tax debt, the U.S. State Department can deny passport applications or revoke currently active passports.

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Five Stars

With excellent customer service and well-trained tax professionals, TaxAudit is set up to be the best tax debt relief program in the industry. Here's why:

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Tax Debt Relief

Millions of individuals and business owners in America currently have unpaid IRS tax liabilities. Here are a few items to consider for tax debt relief options.

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Tax Refund Check and 1040

You can call the IRS to see if your refund has been flagged for garnishment. Then you can reach out to set up a payment plan − if warranted.

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Passport with Denied stamped across it

The IRS can request the State Department to revoke a currently active passport of a U.S. taxpayer with severely delinquent tax debt.

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woman working on a calculator

If you had a debt forgiven and you were personally liable for the debt, you will likely receive a Form 1099–C, Cancellation of Debt.

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This blog does not provide legal, financial, accounting, or tax advice. The content on this blog is “as is” and carries no warranties. TaxAudit does not warrant or guarantee the accuracy, reliability, and completeness of the content of this blog. Content may become out of date as tax laws change. TaxAudit may, but has no obligation to monitor or respond to comments.