I have an IRS lien that is attached to a house underwater that the bank is taking in a couple of months after foreclosure judgment. I do not have any assets of value. So the IRS will not receive any compensation in a Chapter 7 Bankruptcy. I am 100...
Basically speaking if there is no equity in the home or any other assets, the IRS will release the lien because the lien cannot attach to post-petition equity or post-petition acquired property. I made a video with more info about this situation which you can access at the link below.See question
I was recently married but prior to that I have a child support balance owed. Can they take this balance from my wife's tax return? She has nothing to do with my past debt and I don't think this is fair to her if so. I heard from someone about ...
The basic answer is that you will need to file a form 8379 Injured Spouse Allocation in order to get your wife's income tax refund back from the IRS. You are correct in stating that it is unfair for the IRS to keep your wife's portion of the joint refund and allocate that toward your child support payment. In the future, you can file the form 8379 with your tax return in the hopes that her refund won't be delayed as long as it has been this year.See question
I have not recieved any notice from the IRS. I just want to know if they will take it or if they know I am getting a settlement. I did not agree with the car insurance on a settlement till I find out the answer to my inquiry. Also how can I find o...
Since you haven't filed a tax return in five years, it's impossible to state whether the IRS will levy the proceeds of your lawsuit or not. The IRS may have prepared Substitute for Returns for you which basically means they prepared a tax return for you, and then assessed the tax against you. Without contacting the IRS or using a lawyer to do so for you, you cannot have any certainty about where you stand with them.
That being said, the IRS CAN LEVY the proceeds of your personal injury settlement. Whether or not it's taxable itself is irrelevant. But practically speaking they probably don't know about it and most likely won't seize it to pay off your tax liability (assuming you have one).
Over the years, I've learned that most people's fears about their tax liabilities in this situation far exceed what the actual tax liability is. It's just time to face it head on and determine what's going on.See question
a couple owed back taxes and filed jointly. One passes away. The surviving spouse makes an "offer in compromise" for that year. It is accepted and paid for. Should this release the debt accrued in that year ?
It releases the liability as to the surviving spouse (the one with the accepted offer). Because the deceased spouse wasn't part of the Offer, the deceased estate technically still owes the money. If the deceased estate has nothing in it , no big deal. If it does....it might be a problem. Because presumably the IRS filed a Federal Tax Lien which attached to the deceased' property including property in the estate.See question
The IRS has asked me to do my 2004 & 2005 tax returns since I did. How do I find the tax rate for my income. In 2004, I have W-2 wages of $25,460 and I'm filing the 1040 EZ. Can anyone tell me what my tax rate is? I have no other income/distributi...
You need to visit the IRS website and download the tax tables for each year respectively. Here is the link for 2004: http://www.irs.gov/formspubs/article/0,,id=141439,00.html
Here is the link for 2005: http://www.irs.gov/formspubs/article/0,,id=158421,00.html
Those links lead to the forms listings for each year. Then find the instruction booklet for the 1040. The tax tables are contained in those documents.
Good Luck!See question
we got separate because domestic violence, he give money for our son when whe he wants, he has 3 cars a house I have to pay rent I don't have car I pay day care, he pay my medical insurance and to my son too, my salary is not enough to live, now h...
This sounds like a rather complicated problem (mostly due to your fact description). I would look into Innocent Spouse Relief from the IRS in this circumstance.See question
What are the tax liabilities for the money I receive?
Generally speaking you only need to pay the tax on the increase of value over your basis. Your basis is the amount the property was worth at the time of inheritance (or other acquisition). So in your situation, you may owe no tax at all.See question
the Irs took money from my paycheck without notifying me and without a court order
Unfortunately, Congress has passed a statute removing the courts from this process. See IRC §6331. I have posted a copy below for your information.
§ 6331. Levy and distraint
(a) Authority of Secretary
If any person liable to pay any tax neglects or refuses to pay the same within 10 days after notice and demand, it shall be lawful for the Secretary to collect such tax (and such further sum as shall be sufficient to cover the expenses of the levy) by levy upon all property and rights to property (except such property as is exempt under section 6334) belonging to such person or on which there is a lien provided in this chapter for the payment of such tax. Levy may be made upon the accrued salary or wages of any officer, employee, or elected official, of the United States, the District of Columbia, or any agency or instrumentality of the United States or the District of Columbia, by serving a notice of levy on the employer (as defined in section 3401(d)) of such officer, employee, or elected official. If the Secretary makes a finding that the collection of such tax is in jeopardy, notice and demand for immediate payment of such tax may be made by the Secretary and, upon failure or refusal to pay such tax, collection thereof by levy shall be lawful without regard to the 10-day period provided in this section.
(b) Seizure and sale of property
The term “levy” as used in this title includes the power of distraint and seizure by any means. Except as otherwise provided in subsection (e), a levy shall extend only to property possessed and obligations existing at the time thereof. In any case in which the Secretary may levy upon property or rights to property, he may seize and sell such property or rights to property (whether real or personal, tangible or intangible).
(c) Successive seizures
Whenever any property or right to property upon which levy has been made by virtue of subsection (a) is not sufficient to satisfy the claim of the United States for which levy is made, the Secretary may, thereafter, and as often as may be necessary, proceed to levy in like manner upon any other property liable to levy of the person against whom such claim exists, until the amount due from him, together with all expenses, is fully paid.
(d) Requirement of notice before levy
(1) In general
Levy may be made under subsection (a) upon the salary or wages or other property of any person with respect to any unpaid tax only after the Secretary has notified such person in writing of his intention to make such levy.
(2) 30-day requirement
The notice required under paragraph (1) shall be—
(A) given in person,
(B) left at the dwelling or usual place of business of such person, or
(C) sent by certified or registered mail to such persons’s last known address,
no less than 30 days before the day of the levy.
Paragraph (1) shall not apply to a levy if the Secretary has made a finding under the last sentence of subsection (a) that the collection of tax is in jeopardy.
(4) Information included with notice
The notice required under paragraph (1) shall include a brief statement which sets forth in simple and nontechnical terms—
(A) the provisions of this title relating to levy and sale of property,
(B) the procedures applicable to the levy and sale of property under this title,
(C) the administrative appeals available to the taxpayer with respect to such levy and sale and the procedures relating to such appeals,
(D) the alternatives available to taxpayers which could prevent levy on the property (including installment agreements under section 6159),
(E) the provisions of this title relating to redemption of property and release of liens on property, and
(F) the procedures applicable to the redemption of property and the release of a lien on property under this title.
(e) Continuing levy on salary and wages
The effect of a levy on salary or wages payable to or received by a taxpayer shall be continuous from the date such levy is first m
I wanna pay the taxes but as I was 1099 for most of those years, the IRS prepared taxes does not consider any typical write-offs for the field of work I was in. Again, I have recieved a letter with intent to levy and am deeply concerned about this...
I respectfully disagree with my colleagues who have already answered this question. In my opinion, you must file a Request for Collection Due Process hearing which is an appeal of the Final Notice of Intent to Levy. This will prevent the levy from happening while you get your back taxes prepared. If you call the IRS they will give you a deadline just past your time limit for filing the appeal and then they will definitely levy you once you have failed to comply in a manner to their liking. The best advice that I can provide with the information that I have here is to get your past due returns prepared, then filed. This should have the effect of reducing your liability from the return that the IRS prepared for you.
As far as the Offer in Compromise program, I would suggest you visit my site at: http://getirshelp.com/offer-in-compromise.htm - it's simply too much to type in the area provided here.See question
I recently got married due to pressure from my husband's family. I didn't want to b/c i want to still be able to get financial help for school. So we decided to not file the papers. It was conducted by a justice of the peace and we had two witness...
If you are not married under state law because of the failure to file the marriage license, you can and should file your taxes as single. The question is, is your marriage lawful under state law?See question