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If you have been contacted by the IRS for any reason a qualified tax attorney can be a lifeline that can save you not only thousands of dollars but a huge amount of stress. In many cases professional tax attorneys can help stop any tax lein, wage garnishment or IRS imposed lein or financial judgement. In many cases even if you're are facing immediate action against you by the IRS or a creditor there are steps that can be taken to stop these proceedings and give you and your tax professional ample time to present your case to the IRS for review. If you need help we encourage to contact us immediately. Simply call the toll free number on our home page or fill out the contact form to have a tax attorney contact you to discuss the particulars of your situation. Millions of Americans have been in the same position as you. Not having someone who is experienced in handling these procedures isn't the best way to handle these matters.
Tax Debt Questions
A large number of Americans live in constant fear of the IRS expecting them to come knocking on their door any day to recover their tax debts. There are a lot of tax debt questions that such people have in mind and finding the answers to these questions is essential so that you know how best to handle the situation.
Amongst the tax debt questions that people have in mind is whether the IRS has the right to go straight into your account without your knowledge in order to recover the debt that you owe. The IRS is obliged to notify you with a notice of Intent to Levy at least a month prior to taking action. Once you have been notified of their intent then they need not take your permission once the time has passed and they have levied your account.
Also amongst the most commonly asked tax debt questions is whether one is eligible to extract some extra money from the IRS. Yes you can but for that you have to qualify for deductions or credits or both. This will help you to get higher tax gains. Other than that the IRS will not be handing out money just like that. Some people are entitled to receive the economic stimulus tax checks and wonder if they can pass that check on to the IRS instead. You should know that when you owe the IRS any money all your tax refunds and stimulus checks will be counted amongst your debt repayments.
Many people are uncertain about the concept of the tax cap and others also want to know whether it affects them or not. The tax cap is basically the upper limit of the income that is liable to taxation. Once your income exceeds this limit it is not liable to be taxed by the Federal Government. Currently the tax cap has been set at $92,000. There are however constant efforts being made to raise this level higher and on the other hand you have politicians trying to eliminate this concept altogether. So the only case in which the tax cap will affect you is when you make over $100,000 a year.
The list of tax debt questions goes on as many people also want to know whether one child can be claimed as a dependant by two members of the house hold. This happens in cases where parents are separated and the child lives with one of the parents whereas the other partner sends in child support payments. However under the rules and regulations of the IRS only one of the parents will be allowed to claim a child tax credit and that would be the parent who is housing the child. In other cases where one parent and the child living with him are dependent on money sent in by the ex-husband then it would be his right to claim the child tax credit.
These are the answers to some of the most commonly asked tax debt questions on the average American citizen’s mind. There are however many other related questions that people need answers to for which it would be best to consult a tax attorney. Our network of tax attorneys are available to answer any of your questions.
Sometimes, people owe debts such as IRS back taxes, federal or local state taxes, back child support or even alimony from a spouse. In this scenario, the creditor obtains a court order to attach a portion of their wages to satisfy that debt. This is what we call garnishment and it varies from state to state and from situation to situation. IRS levies are also known as garnishment and come into effect when a creditor acquires a court order to assign a certain portion of their wages settle debt like IRS taxes, child support, federal or local and state taxes, alimony to a spouse. This is always utilized as a last resort option. In case a creditor has no alternative plan or source of funds then he can approach the court for help. It is the duty of the court to determine if the creditor is willfully defaulting on the debt or is a genuine case that can be assisted through IRS levies.
IRS levies are more common than people would imagine especially when it comes to delinquent student loans. In an economic situation which is difficult, a student might want to get the IRS levies in order to help paying off a student loan. However, the debtor is protected by the courts, by setting a maximum limit of 25% on the disposable income of a debtor to be paid off to the creditor in order to settle the outstanding amount. This becomes necessary because in most situations the creditors often harass the debtors. The consumer protection act ensures that wages just can not be garnished beyond a stipulated percentage unless it is a case of bankruptcy. The best way however, is for the creditor and the debtor to reach a common agreement to settle the debt without involving the courts and thereby avoiding IRS levies.
You can avoid as a debtor wage garnishment and IRS levies if you can prove through documentation that you have already settled the debt in full or you documentation to show that there is already an agreement between you and the creditor to pay off a debt and you have not defaulted on it. Further, if you can prove that the amount of debt is incorrect or that the debt has already been discharged during a bankruptcy hearing then you can avoid IRS levies and wage garnishment.
If you are a creditor you must know that in certain cases it is impossible to collect on the debt. For example if the business ceases to exist and the entity owed is bankrupt or dead or permanently disabled then you cannot collect the amount of debt due.
Therefore, in order for IRS levies and wage garnishments to be enforced on a debtor, the creditor must prove that he has tried to contact the debtor and been unable to recover the debt to a voluntary agreement between him and the debtor. Although it is the last resort utilized when all other options have been exhausted, tax levies and wage garnishments are exhausting and expensive for any debtor.