Even under the best circumstances, financial problems happen. If left unabated, these situations evolve into even larger issues. Financial problems involving federal penalties, garnishments, liens, and seizures can be tough to understand and solve. When participating in such situations, it is wise to get immediate help from a professional trained in IRS tax services. The U.S. tax office has several ways to collect taxes owed to them. Those methods can cause extensive damage to one’s financial well-being.
Unfiled Tax Returns
The IRS keeps a database of taxpayers who have not filed returns. Sometimes they will allow years pass before alerting the person of the issue. By law, they can file a substitute for return (SFR) on a person’s behalf at any time. If this happens, a SFR reflects an estimate of one’s taxable income. It does not include an assessment of deductions.
Back taxes owed can result in a levy. All types of property and assets are vulnerable to taxes including homes, vehicles, secondary properties, and bank accounts. If a bank levy occurs, the bank will suspend all access to an account. Trained tax professional assists clients in avoiding levies and removing them.
The government can take a percentage of a delinquent taxpayer’s paychecks. In these events, the IRS alerts an employer to retain a certain amount from the taxpayer’s check. The government mandates the organization to forward the withheld money. It is wise not to allow the IRS to decide on how much to garnish from a check. On most occasions, they will elect to obtain the maximum amount to satisfy the debt. Knowledgeable professionals are able to secure tax payment plans for their clients.
Audits can mark the beginning of problems to come. Usually, high deductions result in flagging audits. When this happens, it can be a struggle to get all the related documentation and build a convincing case. However, an excellent tax service can not only present a good case but can help to audit-proof client tax returns.
Regardless of the tax problem that you are facing, it is always best to act instead of hoping that the problem will go away. Some of the worst tax problems have resulted from a constant lack of action on the part of the taxpayer. The best course of action is to contact a certified tax professional. They can offer the best advice to resolve tax related issues.