Tax Relief

If you have no history of tax problems with the IRS, such as back tax returns, but you incurred a penalty for failing to file a tax return, or failing to pay taxes on time, you may be in luck and be able to obtain First time tax penalty relief. The Internal Revenue Service will often lessen certain penalties for taxpayers with a history of good behavior.

Married taxpayers often choose to file joint tax returns because of the benefits this filing status permits, especially tax credits and exemptions. When filing a joint return, both of the taxpayers are liable for the taxes owed, as well as any interest or penalties that might be assessed.

There are various favorable tax related reasons to file joint tax returns, but did you know that by doing this you and your spouse are each jointly 100% liable for the entire amount of the tax? This tax law is referred to as joint and several liability. This can certainly present problems, if one of the spouses understates income or misuses deductions, for example, without the knowledge of the other spouse.

In September 2013, the tax law was revised to greater benefits for those who are seeking tax relief related to debts incurred when they signed a joint tax return was an ex-spouse. The new tax law increases the chance that the Internal Revenue Service will hold that the ex-spouse is not liable for the sins of the other.

One of the most common and pressing questions taxpayers ask when facing back taxes is: How long can the IRS collect the money I owe? It’s a fair concern, especially when penalties and interest accumulate and the IRS’s collection powers seem endless. Fortunately, there are legal limits in place—specifically, what is known as the IRS Statute of Limitations on Collection.

You may receive this notice for various reasons, including filing a tax return without full payment, IRS adjustments leading to additional tax liability, or unpaid taxes due to an audit. CP14A is a balance due notice sent to those with existing installment agreements, requiring no additional action unless the balance is incorrect.

The Collection Appeals Program (CAP) allows taxpayers to appeal certain IRS collection actions, such as liens, levies, and installment agreements. It is available for disagreements concerning levies, seizures, liens, and installment agreements, but only at certain points during each collection action.

Introduction Obtaining hardship status with the IRS, also known as Currently Not Collectible (CNC) or status 53, becomes more than a mere convenience – it transforms into a crucial necessity for those genuinely grappling with financial distress.

New York State taxpayers who are unable to satisfy their tax payment or filing obligations may face consequences such as tax warrants, wage garnishment, asset seizure, and penalties. Relief options include requesting penalty abatement, setting up monthly payment plans, exploring the Offer-in-Compromise program, filing for Innocent Spouse Relief, and utilizing the Voluntary Disclosure Program.

Penalty relief can be negotiated with the IRS and NYS Department of Taxation and Finance for various tax penalties, including failure to file, negligence, fraud, late filing and failure to pay on time. 1) Reasonable cause for the failure to file or pay taxes can be a basis for penalty reduction. 2) First-time penalty abatement is available for taxpayers with no history of tax problems who incur a penalty for the first time.

An alter ego levy is when the IRS seizes assets owned by your alter ego to cover your tax debt. If you've received notice of an alter ego lien or levy, you need to take action – this is not routine tax debt collection, and generally, the IRS only pursues this route when they believe you are hiding assets or they have the right to pierce the corporate veil due to co-mingling.

If you've received Form 15103, it's because the IRS believes you have not filed your tax returns. In most cases, the agency sends this form with Notice CP56, CP59, CP516, or CP518, but it's possible to receive it with another notice.

The IRS has no statute of limitations for unfiled tax returns, meaning it can assess tax at any time, although taxpayers who voluntarily come into compliance are typically asked to file the most recent six years. This guide explains how unfiled returns affect audits, collections, penalties, refund deadlines, substitute returns, and the steps taxpayers can take to resolve past-due filings.