Simple Tax Care

Delinquent Payroll Tax. If you own a business and you have failed to pay payroll taxes or file payroll tax returns, the IRS may levy assets of the business and may even shut the business down. Regardless of whether or not the business is closed, still in operation or files for bankruptcy protection, the IRS will still have the legal capacity to collect taxes. In accordance to IRS Code Section 6672, former officers and directors of the business are personally liable for these... taxes. If you own or have owned a business in the past, the IRS collects what is called "941/ 940 payroll taxes" - commonly known as employment taxes. The 941 tax is due every operating quarter (four quarters a year), and the 940 is due annually. If they are not paid, the IRS can and will levy against anything you own. Penalties and interest will continue to accrue, which could mean an IRS lien or other devastating action. The penalties and interest alone can get very high, thus increasing the total tax liability. This is widely considered to be the worst form of tax debt, as the IRS considers it "stealing" directly from the government. If these taxes are neglected long enough, the business can be closed and all assets seized to satisfy the debt. Should the business close and the IRS seizure of all assets not satisfy the tax liability, the individual shareholders, officers and employees will be held accountable and liable. Non-payment of 940/941 payroll tax liabilities is then attached to personal social security number and personal tax returns, since the IRS will file Civil Penalties. This is one situation where professional tax help is essential. #civalpenalties #taxliabilities #shareholders #nonpayment #tax #taxreturns #bankruptcyprotection #payrolltax #payrolltaxliabilities

Tax Return Preparation. Every year hundreds of thousands of taxpayers fail to file their previous year’ s tax returns. We provide tax planning and prepare tax returns for individuals, businesses, and other entities. We especially focus on preparing returns for multiple years, multiple states, and for non-filers. So what will happen to me if I don't file a return?... The IRS will file a substitute return for you. But this return is based only on information the IRS has from other sources. Thus, if the IRS prepares this substitute return, it will not include any additional exemptions or expenses you may be entitled to and may overstate your real tax liability. Once the tax is assessed the IRS will start the collection process, which can include placing a levy on wages or bank accounts or filing a federal tax lien against your property. Even if the IRS has already filed a substitute return, it still makes sense for you to file your own return to make sure you take advantage of all the exemptions, credits, and deductions you are allowed. The IRS will generally adjust your account to reflect the correct figures #tax #taxreturn #taxreturnpreparation #irs #substitutereturn

Eight Facts on Late Filing and Late Payment Penalties IRS Tax Tip 2013-58, April 18, 2013 April 15 is the annual deadline for most people to file their federal income tax return and pay any taxes they owe. By law, the IRS may assess penalties to taxpayers for both failing to file a tax return and for failing to pay taxes they owe by the deadline.... Here are eight important points about penalties for filing or paying late. 1.A failure-to-file penalty may apply if you did not file by the tax filing deadline. A failure-to-pay penalty may apply if you did not pay all of the taxes you owe by the tax filing deadline. 2.The failure-to-file penalty is generally more than the failure-to-pay penalty. You should file your tax return on time each year, even if you’re not able to pay all the taxes you owe by the due date. You can reduce additional interest and penalties by paying as much as you can with your tax return. You should explore other payment options such as getting a loan or making an installment agreement to make payments. The IRS will work with you. 3.The penalty for filing late is normally 5 percent of the unpaid taxes for each month or part of a month that a tax return is late. That penalty starts accruing the day after the tax filing due date and will not exceed 25 percent of your unpaid taxes. 4.If you do not pay your taxes by the tax deadline, you normally will face a failure-to-pay penalty of of 1 percent of your unpaid taxes. That penalty applies for each month or part of a month after the due date and starts accruing the day after the tax-filing due date. 5.If you timely requested an extension of time to file your individual income tax return and paid at least 90 percent of the taxes you owe with your request, you may not face a failure-to-pay penalty. However, you must pay any remaining balance by the extended due date. 6.If both the 5 percent failure-to-file penalty and the percent failure-to-pay penalties apply in any month, the maximum penalty that you’ll pay for both is 5 percent. 7.If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid tax. 8.You will not have to pay a late-filing or late-payment penalty if you can show reasonable cause for not filing or paying on time.

Experience Is key, See Our Results! #1 Tax Law Firm in CA - Experienced Aggresive Tax Attorneys. Tax Relief Attorneys from Simple Tax Care specializes in IRS , State or Federal Tax Issues nationwide. Our tax lawyers and tax relief attorneys help people with serious tax problems. #taxattorney #irstaxattorney #irstaxlawyers #irsattorney #irslawyer #irs #lawyers #taxattorneylosangeles #taxattorney

Wage Garnishment. The purpose of the IRS is to collect taxes on behalf of the federal government. If a taxpayer does not pay their taxes the IRS will demand payment through phone calls, field visits and letters. If the taxpayer disregards the demands for payment the IRS will give legal notice that it will be resorting to other means to collect the taxes. The IRS does not have to provide any further notice before beginning collection activity for IRS debt. Wage garnishments ar...e one method that the IRS uses to collect the overdue taxes. The IRS is given broad collection powers and when the IRS takes such action it is not an unlawful IRS wage levy. An IRS wage garnishment or IRS wage levy is a written notice sent by the IRS to the taxpayer’ s employer requiring the taxpayer’ s employer to withhold a significant percentage of the employee’ s pay and to forward it directly to the IRS. Employers are obligated to follow the instructions of the IRS. If employers disregard IRS wage garnishments serious penalties can be imposed. If a taxpayer is self-employed, the IRS can send a IRS wage levy to the taxpayer’ s accounts receivable. Those businesses and individuals are required to send the taxpayer’ s funds to the IRS debt wage garnishment department. The IRS commonly uses this means of enforced collection activity to collect back taxes. IRS wage garnishments can have a devastating impact on a taxpayer’ s financial situation. Many taxpayers struggle due to the garnishment of wages by IRS. An IRS wage levy can remain in place until the tax liability is paid or until it is resolved through some other means such as an Installment Agreement, an Offer in Compromise or a Currently Not Collectible status. Taxpayers can stop wage garnishments from the IRS by not waiting for the IRS to start collection efforts and by resolving their account beforehand. To learn how you may be able to stop a wage garnishments from the IRS contact us today

Tax Settlement Services Currently Non Collectible. The IRS Currently Non Collectible program means that a taxpayer has no ability to currently pay his or her taxes. Once the account is placed in a Currently Not Collectible status, the IRS does not pursue collection activity against the taxpayer and the statute of limitations on the tax liabilities will continue to run. Generally, unless the taxpayer’s financial situation changes, the account will remain in a Currently Not Col...lectible status until the tax liabilities expire. However, if the taxpayer’s financial situation improves the account will be taken off of Currently Not Collectible status so that the IRS can collect the taxes through full payment or an Installment Agreement. When a taxpayer has a negative cash flow and has equity in assets that the taxpayer is dependent upon, the taxpayer could attempt to resolve their account by having their account placed in a Currently Not Collectible status depending on their circumstances. For Currently Not Collectible status, the underlying issue is that liquidation of a particular asset is either not feasible or would cause a financial hardship.

Installment Agreement. An Installment Agreement with the IRS allows taxpayers who are not able to afford to pay their back taxes in full the option to pay through monthly installment payments. Keep in mind that that the IRS uses guidelines to determine the monthly payment amount and the duration/length of time to pay it off. To be able to qualify for an Installment Agreement, the tax payer has to be compliant with all past tax filings. The Installment Agreement may pay all or... part of the back tax liability depending on the circumstances and the amount of time the IRS has left to collect the tax debt. The issue tax payers have to be mindful of is that the IRS may want to collect the most monthly amounts in order to get the tax debt paid faster. This may cause a financial hardship as the installment payments maybe more than what most tax payers are comfortable with. It is more often than not that tax payers may end up defaulting on their payments, this has caused the IRS to begin their collection process all over again. It is essential to have an agreement the tax payer is comfortable at the beginning of this process. Having an Installment Agreement will seize the IRS collection efforts and will stop them from issuing wage garnishments, bank levies, sending notices and making harassing phone calls. However, tax payers on Installment Agreements continue to pay back tax liability throughout the duration of the Installment agreement on the unpaid portion. It is also possible that the IRS may file a Notice of Federal Tax Lien to protect their interest. Once a tax payer has established an Installment Agreement, it is crucial that he/she is remains compliant with future tax filings and payments. An Installment Agreement can be a strong solution to those that do not qualify for an Offer in Compromise or Currently Non Collectible status.

Offer in Compromise. An IRS Offer in Compromise with the IRS allows taxpayers that cannot afford to full pay their back tax liability, the opportunity to settle for LESS than what they owe. An Offer in Compromise can reduce IRS debt. IRS tax settlements are subject to certain terms and conditions. In order for an Offer in Compromise to be initiated, taxpayers must successfully demonstrate either that they are unable to pay the amount that is due, or that they do not owe the a...mount due. Upon meeting these qualifications, one can save a great deal of money and avoid needing wage garnishment help in the future. The IRS Offer in Compromise process involves completing the appropriate forms, having the necessary records on hand, being compliant with the IRS tax regulations, and filing the Offer in Compromise for review with the IRS. Once filed, the IRS begins their investigation of the taxpayer’ s reasonable collection potential based upon his or her financial situation. They also evaluate the taxpayer's history of filing tax returns. Unfortunately, many taxpayers who file an IRS Offer in Compromise get it returned due to procedural deficiencies and never make it to a point of final review. Thus, satisfying the many procedural requirements is necessary if an Offer in Compromise is to be reviewed by the IRS and is one of the benefits in hiring an experienced tax professional for filing an IRS tax settlement. An IRS Offer in Compromise it is an excellent way to resolve back taxes and to get a fresh start with the IRS.

Tax Tip: As you work with vendors or outside contractors, anticipate which ones you will pay more than $600 to over the course of the year so you can send them 1099-Misc forms.

Call today to speak with a Professional Tax Consultant to relieve you of the stress and sleepless nights. You will receive a, no-obligation consultation to help determine the proper program for you or, simply fill out the form to the right and we will contact you within 24 hours. Call (800) 506-8430 today! .

Through strategic negotiations and implementation of proper IRS procedures, our experienced team will work directly with the IRS to solve your tax problem and stop garnishments and levies. You owe it to yourself to let Simple Tax Care help you. Listen, Piece of mind is priceless! Let Simple Tax Care get the resolution you need and the piece of mind deserve.

Here at Simple Tax Care, we understand that people find themselves overwhelmed with the IRS for many reasons job loss, medical expenses, the rising costs of raising a family or the harsh realities of the sharp economic downturn.