Knowing how to handle income tax problems is not an easy thing. For people with tax problems solutions seem impossible. However, it is possible to resolve tax problems with the help of a professional. In this article, we’ll review the options for taxpayers who are struggling to get out of debt.
Why Do We Pay Taxes Anyway?
Americans have been subject to taxes since the colonial period when the United Kingdom imposed taxes on colonists. Federal, state, and local taxes pay for things everybody uses like schools, roads, hospitals, the military, and government services. People are taxed on their income, property, and purchases, though sales taxes differ from state to state. New York residents pay eight percent sales tax while Delaware residents don’t pay sales tax at all. Chicago residents are taxed for fountain soda drinks at nine percent and for bottled and canned soda at three percent. Regardless of the amounts, taxes are used by all levels of government to pay for public projects and services
What Are the Consequences for Delinquency?
Neglecting to pay your taxes or underpaying can be very serious. This process can include wage garnishment or other levies. The IRS can levy upon wages, bank accounts, social security payments, accounts receivables, insurance proceeds, real estate, and even personal residences with permission of a federal magistrate.
How to Handle Income Tax Problems
In the first place, many find it handy to have certified individuals prepare their taxes. It is estimated that the U.S. is home to approximately 1.2 million tax preparers who can help you make sure that you don't miss anything in the first place. For those who already have tax problems solutions include offer in compromise, installment agreements, currently non collectible status, and penalty abatement. Because the Constitution's Fifth Amendment forbids the government from taking an individual's property without due process of law, those who owe taxes are always notified before a levy, lien, or garnishment takes effect. At this time, it is recommended to take action for debt relief. Anyone owing more than $10,000 is encouraged to hire a tax attorney who can help with the process.
For those wondering how to handle income tax problems, the situation might seem impossible. However, it is very possible to get out of tax debt with a little dedication and work. Seek help and work with the IRS to develop a solution. Help is out there.
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