Penalties and Possible Penalty Abatements There are several different penalties that may be affecting your ability to pay back your IRS balance. Often, there are ways to address the penalties. Failure to file penalty As the name implies, this penalty is assessed when a return is not timely filed, either by April 15, or October
Tax Liens and effects on property Liens are likely the most common point of issue. The reason is that the IRS can file a lien very easily, without much paperwork and, unlike levies, happens quite often even when not assigned to a Revenue Officer. First, distinguishing a lien from a levy is very important. Liens
Tax Levies and Garnishments Likely the most problematic and stressful IRS collection actions are bank levies and wage garnishments. Wage levies are typically one-time attachments to current funds. Funds are frozen in accordance with the banking institution’s guidelines before being released. There are tools tax attorneys use to recover the funds and preventative measures to
Currently Non-Collectible Taxpayers that are struggling with financial hardship may be able to find a way to be completely relieved of their IRS debt. Currently Not Collectible Status removes the taxpayer’s tax balances from active collections with the IRS. A taxpayer provides documentation of their current financial condition, and if such documentation shows that the
Streamlined Installment Agreement This type of installment agreement comes with a couple of strict guidelines that determine an individual’s eligibility. There are some added benefits that make this program worthwhile, such as not having to disclose all of a taxpayer’s financial information to the federal or state tax agency. The assessed or actual tax balance