Month: August 2015

28Aug, 2015

5 Effective Ways to Settle IRS Tax Debts in Chicago

Owing taxes to the IRS isn’t the end of the world, even if the sums involved are large. The IRS offers tax payers in Chicago several programs that enable them to get their tax account straight without having to pay the tax money they own all at once. Here are 5 effective ways for a tax payer to settle IRS tax debts in Chicago.

Ways to Settle IRS Tax Debts

Sign an installment agreement or partial installment agreement

You can agree with the IRS to pay your tax debt in installments, usually every month — this is an installment agreement. For many tax payers who owe money to the IRS, an installment agreement is the most straightforward and hassle-free solution to resolving their tax debt. A newer, more flexible alternative is the partial payment installment agreement, a long-term payment program at a reduced dollar, which can be a way out for tax payers who cannot cope with the monthly requirements of a standard installment agreement. Using professional tax services in Chicago makes it easier for you to reach a favorable (partial) installment agreement with the IRS.

Agree upon an offer in compromise

In some cases, the IRS understands that recouping all tax debts from a company or individual is unfeasible due to their difficult financial situation and may settle instead for an offer in compromise. This is a program which enables tax payers in bad situations to settle their tax debts for less than the true amount they own. An offer in compromise can involve either a short term payment plan, or a lump sum payment. Using a professional and experienced tax consultant in Chicago increases your chances of agreeing upon an offer in compromise with the IRS.

Claim innocent spouse relief

If your spouse has had tax problems in the past, it doesn’t mean that you have to inherit them. You can use a tax consultant in Chicago to claim innocent spouse relief and liberate yourself from tax problems that are not your own doing. The expertise and guidance of a tax consultant in Chicago proves invaluable when seeking innocent spouse relief, as the IRS has an extensive list of guidelines and requirements which you must meet in order to be eligible for this program.

Gain ‘not currently collectible’ status

When a taxpayer cannot afford to pay his tax debts, he or she can request the ‘not currently collectible’ status from the IRS, which means that the IRS will not attempt to collect tax debts for about a year. Winning extra time gives the taxpayer the opportunity to stop an existing IRS levy or seizure and resolve financial problems. If the situation requires it, you too may claim this status, provided that you can offer enough evidence that you are unable to pay your taxes.

Settling IRS tax debts can be a difficult and frustrating experience, which is why you may want to consider using our tax services in Chicago. At Defend Tax Payer we have 45 years of combined experience with tax problems and can use our insight to find a fast and effective solution to your problem. Contact us and we will help you.

18Aug, 2015

3 Common Tax Misconceptions In San Antonio, Texas

The self-reporting US tax system isn’t the most straightforward of tax systems, and although the IRS does a good job at providing extensive online resources for tax payers, there are still many tax misconceptions among residents of San Antonio. As a provider of tax services in San Antonio TX, we at Defend Tax Payer consider it our duty to try to dispel some of these misconceptions in order to make tax preparation and payment easier for our customers, as well as for San Antonio residents in general. Without further ado, here are 3 common tax misconceptions in San Antonio.

3 Common Tax Misconceptions In San Antonio, Texas

  • The US government automatically deducts the appropriate tax from my salary, which means that my only tax-related legal obligation is to prepare FORM W-4

False. Although FORM W-4 tells your employer how much tax money to deduct from your monthly salary, the true amount of tax money you own may turn out to be by the end of the year a bit more or a bit less than the deducted sum. Filling an accurate income tax return at the end of the year is therefore required. The IRS will compare the numbers on your FORM W-4 with those on your end-of-year income tax return and decide whether it will deduct additional tax money from you, or give back a part or even all of the money initially withheld.

 

  • Everyone can use the simplified FORM 1040EZ to file for income tax

False. The IRS developed FORM 1040EZ specifically for residents of the United States. Two other categories that can use this form are permanent resident aliens and residents for tax purposes. If you are not (yet) a resident of the US, or belong to the other two categories, then you can file the 1040NR EZ form, which is more straightforward than the traditional 1040NR form and can be filled quicker. A tax consultant in San Antonio can help you do so.

 

  • If I am a graduate student and my teaching or research position as an assistant within the university pays for my tuitions and other fees, I don’t have to pay any taxes

False. According to US law, graduate assistantships are taxed. The IRS considers the tuition and other fees that are paid for you (as well as living expenses, if that is the case) as financial gain received for the work you do. If you are a student following a graduate assistantship and are not sure about your tax status, you may want to contact a tax consultant in San Antonio.

Whether you are a full-time employee, a student, or a business owner, if you are unsure about your tax status or have run into problems with the IRS, we at Defend Tax Payer have a dedicated team of experienced legal workers who can help you with professional tax services in San Antonio, TX. Visit our Services page to find out more, or call us at 866-489-1670.