Tori D. from San Diego wrote me a case where it is garnished at work, and it’s only made them a few hundred dollars a month to live on.
OUCH! This is one of the worst things that can happen if you owe the IRS back taxes. Many of the taxpayers, I usually create a false sense of security when it comes to the IRS, because they “think hey, I own nothing, so they have not hit anything. I’m sure.” This is an illusion.
You see,while the IRS certainly does not have the power to take your car or house, they do not like to do it. It’s too much work. The investment is a nightmare of paperwork for the agents, they have to go through with the seizure, and then the auction, and then nobody pays full market value for all in one IRS auction, so they end up with much less money. Often it is not worth it for the agent.
But you do not need to auction off cash. And cash usually comesbank accounts and receive their reward. That is where some people make a mistake. If you have a job, or even for a subcontractor, the IRS (and usually) will take your money. And yes, they will do it, even if it leaves nothing to live off of.
So, if this happens, how can the tax collected?
SOLUTION: First, you must ensure that all of your tax returns (Forms 1040) filed with the IRS. The IRS can not set aside by law, if a levyare the missing returns. It’s okay if you owe for the missing year. You do not have to pay them. . . receive only brought them.
First, it depends whether you owe more or less than $ 25,000. If less, until a Streamlined Installment Agreement set.
If you owe more than $ 25,000, then it becomes much more complicated. They must go through the full disclosure of finances and to prove to the IRS (1) that the levy is creating an undue financial burden, and (2) that you can afford either to paynothing now, or you can pay a reduced monthly amount.
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