Tax Issues and the One Effective Solution to Deal with Them Fili g ou ta etu s does ’t i ediatel gua a tee that ou’ e off the hook. Rathe , it’s just a potential start of your tax woes. There are many reasons why the IRS may call your attention and request for an audit. Usually it’s e ause the fi d so e of ou e t ies i o siste t o suspi ious. It’s also possi le that given your circumstances such as your job and assets, you may be misdeclaring your tax liability o that o e a e tai pe iod of ti e, ou did ’t file a thi g at all. You dedu tio s a d edits may also be wrong. Either way, the audit may reveal that you still have a tax liability to pay. Lien on Property You can al a s hoose to ig o e the IRS, ut it’s e e a good idea to do so. Fi st, as a government agency responsible for collecting the lifeblood of the country, it is normally p o ided ith the p i ilege to e e t all ea s to olle t o settle the de t. We’ e already encountered some of the harsh tactics they implement, one of which is a tax lien. A tax lien is a notice that is attached to your property. It simply means that your asset such as your home may never be sold on the market unless you have fully paid your liability. This can be a e ad s e a io e ause, o e, ou a o lo ge el o the p ope t ’s e uit if ou ish to get a loa to pa ou ta es. Se o d, it’s possi le that the go e e t has the optio to seize it as the form of payment. Third, the lie is al ead i luded i ou p ope t . E e if ou’ e ee successful in paying the liability, the lien record may discourage potential buyers and realtors. Wage Garnishment A wage garnishment is very similar to the tax lien. It is also attached to your asset, in this case, your salary or wage. When the IRS requires this, it means that your salary is reduced by the amount determined to cover for the tax balance. This is a legal order, which means it has to be enforced. This type of tactic can be very hurtful to you. It hits you where you are most vulnerable: income. When your income is reduced, it means that your purchasing power and ability to pay the bills also go down. If you have other existing debts, then you can find yourself in more fi a ial ha dship. Mo eo e , si e it’s di e ted to the o pa , it’s possi le that the management or even some of the employees may know about it—a very embarrasing situation ou do ’t a t to e i . Payroll Tax Penalties It does ’t atte if ou a e u i g a s all o huge usi ess. As lo g as ou ha e e plo ees, you are responsible for their withholding taxes, which shall be deducted from their wages. In turn, you should be able to turn over the amount to the IRS.
Nevertheless, certain situations may prevent you from doing that. For instance, you may find ou self i a tight spot a d thus used the ta ithheld as o e apital i the hopes ou’ll e able to enjoy more profit and recover the amount. What to Do In all these 3 situations, one of the best steps you can take is to communicate with a tax lawyer. He a gi e the app op iate ad i e depe di g o the situatio ou’ e i a d e e help ou resolve the issue, such as appealing the lien, requesting for reprieve or other options from the IRS, and settling IRS debt. Related Article: http://dallastaxattorney.blog.fc2.com/blog-entry-1.html