Avoid the Failure to File Penalty by Filing Your Returns On Time Today!
Just a friendly reminder that today is Tax Day in the the U.S. Today is the deadline to file your individual income tax return or your extension. Just remember that if you file an extension that that is only an extension of time to file your tax return but not an extension of time to pay your tax liability. So if you are going to owe you need to get that check postmarked and mailed today.
Also, remember that if you owe and cannot afford to pay the tax, you should go ahead and file your income tax return to save on the failure to file penalty that can be up to 25% of the tax you owe. Simply by filing the tax return you save this penalty and increase the amount of money that you keep in your pocket.
REMINDER: FREE IRS PROBLEM RESOLUTION SEMINAR
I wanted to send out a reminder about the FREE IRS Problem avoidance and resolution seminar that my law firm is putting on is tomorrow night. RSVP details are below if you would like to secure your spot at the seminar.
The IRS wants you to think that you only have one option: pay the tax, interest and penalties they say you owe in full. In actuality, you have several options and it is to your benefit to know your rights and options so you don’t pay more than you have to and so you don’t get stuck with tons and tons of penalties.
Here are the seminar details:
- When? Tuesday, March 24, 2009 at 7 pm
- Where? The Buck Mickel Center, Greenville Technical College
- How to RSVP: Online or by Telephone (1-800-216-1116)
You will also learn 5 Tax Secrets that will Save you Money:
- Why it is important to file all of your tax returns, even if you cannot afford to pay the tax
- How to keep from paying IRS penalties
- Why you should always pay your company’s payroll taxes on time
- How to avoid IRS audits and if audited, how to end it quickly
- How to pay less taxes utilizing an offer in compromise
If you would like to attend one of the free seminars, you can visit the online RSVP page here. You can also call toll free to give us your reservation information at 1-800-216-1116.
REMINDER: Free IRS Problem Resolution Seminar
REMINDER of UPCOMING SEMINAR
The law firm that I am a member of, The Greene Law Firm, P.A., is putting on a free seminar to discuss ways you can avoid IRS problems and let you know about your rights in case you find yourself in the midst of IRS problems.
Here are the seminar details:
- When? 2 Sessions: Thursday, March 19, 2009 or Tuesday, March 24, 2009 at 7 pm
- Where? The Buck Mickel Center, Greenville Technical College
- How to RSVP: Online or by Telephone (1-800-216-1116)
You will also learn 5 Tax Secrets that will Save you Money:
- Why it is important to file all of your tax returns, even if you cannot afford to pay the tax
- How to keep from paying IRS penalties
- Why you should always pay your company’s payroll taxes on time
- How to avoid IRS audits and if audited, how to end it quickly
- How to pay less taxes utilizing an offer in compromise
If you would like to attend one of the free seminars, you can visit the online RSVP page here. You can also call toll free to give us your reservation information at 1-800-216-1116.
How to Avoid and Solve IRS Problems Free Seminar
The law firm that I am a member of, The Greene Law Firm, P.A., is putting on a free seminar to discuss ways you can avoid IRS problems and let you know about your rights in case you find yourself in the midst of IRS problems.
Here are the seminar details:
- When? 2 Sessions: Thursday, March 19, 2009 or Tuesday, March 24, 2009 at 7 pm
- Where? The Buck Mickel Center, Greenville Technical College
- How to RSVP: Online or by Telephone (1-800-216-1116)
You will also learn 5 Tax Secrets that will Save you Money:
- Why it is important to file all of your tax returns, even if you cannot afford to pay the tax
- How to keep from paying IRS penalties
- Why you should always pay your company’s payroll taxes on time
- How to avoid IRS audits and if audited, how to end it quickly
- How to pay less taxes utilizing an offer in compromise
If you would like to attend one of the free seminars, you can visit the online RSVP page here. You can also call toll free to give us your reservation information at 1-800-216-1116.
Can You Get the IRS To Release A Levy if I Have Unfiled Returns
I was recently contacted by someone who just received notice from their employer that their wages were going to begin being garnished by the IRS. Basically, we were on a deadline of the next payday (about 5 days away) to get the levy released before payroll was sent off so the client didn’t see any change in her paycheck.
When we spoke about the case, I thought we were clear that all returns had been filed, but the client just owed the IRS money for a few years. Upon calling the IRS to negotiate the release of the levy, I was informed that there were, in fact, outstanding tax returns that must be filed.
Before the IRS will negotiate with you whether it is to negotiate the release of a wage garnishment or to ask them to accept an offer in compromise, you must have at least the last six years tax returns filed. If you do not, the IRS will not begin to negotiate with you.
I always urge my clients to go ahead and file their tax returns on time every year whether they can afford to pay the tax or not. Why? For two main reasons. First, by filing you immediately avoid the failure to file penalty that the IRS assesses. This can add up quickly. The failure to file penalty is 5% of the tax owed per month up to a maximum of 25%. Yuck!
Second, by filing, you begin the statute of limitations clock running for how long the IRS to collect the tax that you owe. If you never file the clock never starts and you are stuck with the IRS for the rest of your life or until you finally pay off the tax, penalties and interest.
Can the IRS Levy My Wages when I submit an Offer in Compromise
When you submit an offer in compromise to the IRS future active collections against you will be stopped and the IRS will not come after you to collect what you owe. The IRS will let you work on trying to get the offer in compromise accepted before they begin levying you. This rule only applies to those collections when you do not already have a levy in progress when your offer in compromise is submitted to the IRS.
Usually, the IRS will release a levy that is in place when you submit an offer in compromise. However, they are not required to and if a levy is already in place it may take several weeks before a release can be obtained. The first thing that has to be done is that we have to wait for the IRS to receive your offer in compromise and we have to receive a letter back from them that states the offer in compromise has been received. This will be our proof to the IRS that an offer has been submitted when we call and request the levy to be released. It usually takes at least 30 days from when we submit the offer in comproimse to receive this letter.
Our first attempt will be to call the collections department of the IRS and ask them to release the levy. This used to be pretty easy; however, in the past several months we have noticed the IRS getting much stricter and not releasing these levies even after the offer in compromise has been received. Technically, they do not have to and they are sticking with this. I have appealed it to their managers and supervisors and have not had any luck. Where we have had some luck is in contacting the Taxpayer Advocate Service in this situation. A levy is supposed to be released when it causes an economic hardship on a taxpayer and that is generally our best argument along with the fact that the offer in compromise has been submitted.
So, if you are receiving collection notices from the IRS and contemplating an offer in compromise, I would recommend that you go ahead and get moving with the offer because once the IRS begins collecting through a levy on your wages it is much more difficult (and definitely not a guaranteed thing) to get released.