Taxpayers in Brooklyn, New York and Kings county can get IRS tax help, tax relief, tax problem resolution, 941 employment payroll tax help, and IRS tax audit help by calling 877-788-2937.
IRS office serving Brooklyn, NY is located at 625 Fulton St., Brooklyn, NY 11201
Penalty abatement is a form of tax debt relief you can avail to significantly reduce the total tax you owe to the IRS.
What is Penalty Abatement?
If you have a tax debt, the IRS will calculate penalties and interest on the amount owed. The penalties include a ‘failure to file’ penalty if you have failed to file your returns on time (including extensions), a ‘failure to pay’ penalty if the tax amount has not been paid in full and which is calculated on the basis of the amount you owe. These two penalties are charged on a monthly basis for the entire period until resolution. Further the IRS charges a daily interest on the tax amount you owe. All in all, the each penalty may contribute up to 25% of your total tax bill.
If your failure to pay taxes has been due to financial difficulties, such difficulties are further compounded by the penalties, which continuously keep adding to the total tax debt. So penalty abatement is an option you should definitely consider to achieve some degree of tax debt relief. As professional enrolled agent, Mike Habib can guide you in this matter if you do not feel confident enough to handle it on your own.
Seeking help with tax debt should be your priority if you find yourself unable to discharge your tax obligations to IRS. Tax debt is a serious problem that can affect you emotionally, financially and socially. The emotional aspect refers to the constant anxiety and waiting for the inevitable IRS notices. Of course, if the IRS resorts to some of its extreme collection techniques like placing a lien on your property or levy wage garnishment, the social and financial implications become severe.
In the present times, it is a common occurrence to find ourselves buried neck deep in the sands of unpaid tax debts although in today’s economy it is not unusual to have tax debts. For individual and business taxpayers in Chicago-Aurora-Elgin-Joliet-Waukegan, IL-IN Metro it is often stated and acknowledged that owing money towards IRS is tantamount to owing money towards mob. Not surprising though if you already know how scary and unrelenting IRS tax officials usually are. The very thought of the IRS hounding you relentlessly is enough to drive sane people insane.
What is an IRS Tax Settlement?
An IRS tax settlement is an agreement between you and the IRS regarding what you owe them. It is a negotiation where you pay an amount that is less than you originally owed. The IRS is often willing to take a deal rather than to have to continue to fight to get funds owed to them. This is especially true if it isn’t possible for the person or business to pay what is owed.
An IRS tax settlement also involves various penalties, interest, and fines being removed from what is owed. When all of that is added on, it can increase the overall debt dramatically. Many people don’t realize that they can offer an IRS tax settlement and get out from under that stressful situation.
While they do prefer to get the full amount of money that is due to them, they are realistic about it. They don’t want to be hassling people or businesses for money. They also know that you can’t get blood out of a turnip. Don’t ignore the IRS when they tell you that you owe them money. Instead, see what you can do through a tax settlement offer.
What is a Bank Levy?
A bank levy is a very serious incident and one that can cause great distress for you financially. This involves the IRS freezing your bank account. They can take everything that is in it. They don’t care if you have $5, $500, or $5,000. They don’t have to tell you that they are going to do it either.
The information for the bank levy goes right to the financial institution. As a result, you may write checks and then you don’t have any money to cover them. You may need to make a cash withdrawal and find out that you can’t access any of the money you thought you had in that account.
Want to reduce your unpaid IRS debt with an Offer in Compromise?
Many taxpayers with back taxes contact us on a daily basis to see if qualifying for an offer in compromise settlement can save them thousands of dollars in taxes, penalties and interest. The widely known offer in compromise settlement is an agreement between the taxpayer and the IRS to settle the taxpayer’s full tax liabilities for possibly less than the full amount owed. Each taxpayer’s, RCP, reasonable collection potential, is different and an offer will not be accepted if the IRS believes that the full unpaid tax liability can be paid in full as a lump sum or through a payment agreement.
An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service (IRS) that settles the taxpayer’s tax liabilities for less than the full amount owed. Absent special circumstances, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through an installment agreement.
In most cases, the IRS will not accept an OIC offer in compromise unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential (RCP). The RCP is how the IRS measures the taxpayer’s ability to pay and includes the value that can be realized from the taxpayer’s assets, such as real property, automobiles, bank accounts, and other property. The RCP also includes anticipated future income, less certain amounts allowed for basic living expenses.
Updated 9/02/11 to reflect expanded federally declared disaster area.
The Internal Revenue Service is providing tax relief to individual and business taxpayers impacted by Hurricane Irene.
The IRS announced today that certain taxpayers in North Carolina, New Jersey, New York, Vermont and Puerto Rico will receive tax relief, and other locations are expected to be added in coming days following additional damage assessments by the Federal Emergency Management Agency (FEMA).
The tax relief postpones certain tax filing and payment deadlines to Oct. 31, 2011. It includes corporations and businesses that previously obtained an extension until Sept. 15, 2011, to file their 2010 returns and individuals and businesses that received a similar extension until Oct. 17. It also includes the estimated tax payment for the third quarter of 2011, which would normally be due Sept. 15.
When it comes to filing a tax return, or not filing one, the IRS can assess a penalty if you fail to file, fail to pay or both. Here are eight important points the IRS wants you to know about the two different penalties you may face if you do not file or pay timely.
If you do not file by the deadline, you might face a failure-to-file penalty. If you do not pay by the due date, you could face a failure-to-pay penalty.
The failure-to-file penalty is generally more than the failure-to-pay penalty. So if you cannot pay all the taxes you owe, you should still file your tax return on time and explore other payment options in the meantime. The IRS has options such as payment plans, offer in compromise, and other options.
Tax Relief Blog