Income Tax Information — Never Ignore A Letter From The IRS
April 25, 2010 by Taxcut Editor
Filed under Personal and Business Taxes
If you owe a significant amount of money to the IRS, there are plenty of places to get income tax help from certified tax advisors. Section 7122 of the Internal Revenue Code stipulates that the IRS may accept a smaller amount as full payment of a tax debt if you don’t have enough money to pay what you owe, and you are not realistically able to make payment in the future. In such situations, the tax law encourages you to make a compromise offer to the IRS.
Can you make a deal with the IRS? Yes, you can—the law encourages you to try. Here are some things to keep in mind if you need income tax help to settle a debt with the IRS:
1. Many delinquent taxpayers are able to negotiate a very favorable deal. You might be able to pay off your back taxes, including interest and penalties, for less than fifteen cents on every dollar you owe. That means a $50,000 tax liability could be written off for no more than $7,500.
2. The IRS won’t make such a favorable deal if they think they can get you to pay more by other means. The IRS uses a formula based on your net worth to determine how easily they’ll let you off the hook. How they arrive at a decision is beyond the scope of this brief article, so ask a tax advisor if you feel it’s in your best interest to make a compromise offer to the IRS.
3. If you default on the terms of a tax settlement, the IRS has a legal right to terminate the agreement and seek payment of the entire amount originally owed in back taxes, interest, and penalties. When you make a deal with the IRS, follow through on the agreement. No amount of income tax help from the best advisor in the country will bail you out if you fail to keep your end of the deal.
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Tax Relief Forms and General Tax Forms
April 21, 2009 by Taxcut Editor
Filed under IRS Tax Forms
Form 1040a - Form 1040A is for any taxpayer making less than $100,000 in taxable income.- Form 1040es - Form 1040-ES is known as the Estimated Tax Payment Voucher
- Form 1040x - Form 1040x is for an amended return, after filing your taxes.
- Form 2848 - Power of Attorney, IRS Form
- Form 4868 - Application for Automatic Extension of Time OMB No. 1545-0074 To File U.S. Individual Income Tax Return
- Form 656 - IRS Form 656, Offer in Compromise
- Form 7004 - Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns
- Form 8453 - This form is the signature document for e-file returns.
- Form 8821 - Tax Information Authorization
- Form 8822 - Change of address or name change.
- Form 1040 - Total tax form for standard deductions for real estate taxes and disaster losses.
- Form W4 - Complete Form W-4 so that your employer can withhold the correct federal income tax from your pay.
- instructions1040.pdf - Instructions for filing with the IRS Form 1040 for the average taxpayer.
- instructions1040a.pdf - Instructions for filing with the IRS Form 1040 for the average taxpayer.
- instructions1040x.pdf - Instructions for filing the Form 1040x an amended return, after filing your taxes.
- Form 4506 - Request for Copy or Transcript of Tax Form
- Form 433b - Collection Information Statement for Business
- Form 433a - Collection Information Statement for Wage Earners and Self-employed Individuals
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