Franskoviak Tax Solutions | Cincinnati, Ohio

Most lenders will request that you provide one to two years of tax returns when you apply for a home loan. Lenders also check credit information, which can show if the borrower owes federal tax debt. In addition, lenders may also run a background check, which can reveal any liens or judgments against the borrower. If the lender finds that the borrower owes taxes, they may require that the debt be paid off before approving the loan. In some cases, the lender may even refuse to provide financing. As a result, it’s important to be honest with your lender about any outstanding tax obligations you may have. Otherwise, you could end up jeopardizing your chances of getting approved for the loan.

In order to qualify for true tax forgiveness, you must have a certain amount of credits against your back taxes. These credits can reduce some or all of your tax liability. To qualify, you must make certain the IRS takes into account your taxable and non-taxable income, as well as your family size and specific financial situation. You also may need to prove that you are unable to pay the taxes you owe and that paying them would create a financial hardship for you or your family. If you can prove all of these things to the IRS, you may be able to qualify for true tax forgiveness.

Installment Agreement: A monthly payment plan, that fits your budget, can be established to pay off the IRS. Offer in Compromise: This is one of the most common solutions for paying off debt and tax problems. Not Currently Collectible: This is a program where the IRS agrees to postpone the collection process for a year or so. Release Wage Garnishments: When you owe the IRS money the IRS can levy your wages, salary, or federal payments until the levy is released, your tax debt has been fully paid off, or the time expires for legally collecting the tax. Innocent Spouse Relief: If you happen to inherit your spouse’s IRS tax problems, you can dispute it. File Bankruptcy: Income tax debts may be eligible for dismissal under Chapter 7 or Chapter 13 of the Bankruptcy Code.

The IRS has 10 years to collect your income taxes. If they do not collect the income taxes from you within ten years from the date your taxes are assessed, then your tax debt – no matter how much – will be forgiven. The key to this statute of limitations, however, is when your taxes are assessed. If you continue to ignore the debt it will continue to grow at a significant pace and you will find yourself with a much more serious tax problem.

Though it may seem like an impossible feat, there are actually several legal ways to avoid paying US income tax. One option is to move outside of the United States. If you can prove that you live in another country and that your income is derived from sources outside of the US, you will not be subject to US taxation. Another option is to establish a residence somewhere else. This could mean buying a property in another country or simply spending a certain number of days each year in a foreign country. If you meet the requirements, you can claim foreign residency and avoid paying US taxes. A third option is to move to one of the US territories. These include Puerto Rico, the Virgin Islands, and American Samoa. While residents of these territories are still considered US citizens, they are not subject to US income tax. Finally, you can always renounce your citizenship. However, this is a radical step and should not be undertaken lightly.

Filing your taxes can seem like a hassle, but it’s important to do every year. Not only does it ensure that you’re paying your fair share, but it also prevents you from incurring penalties. The penalty for failing to file your taxes on time is 5% of your unpaid tax liability for each month that your return is late, up to 25% of your total unpaid taxes. That means if you owe $1,000 in taxes and don’t file for two months, you’ll owe an additional $100 in penalties. If you’re due a refund, however, there’s no penalty for failure to file. So if you’re dreading tax season, just remember that it’s better to file late than not at all.

The answer is that there is no statute of limitations on a late-filed return. The IRS can go back to any unfiled year and assess a tax deficiency, along with penalties. However, in practice, the IRS rarely goes past six years for non-filing enforcement. So, if you’re thinking about skipping out on filing your taxes for a few years, you may want to think again. The IRS could come after you for many years of unpaid taxes, plus interest and penalties. And, if they do, you’ll be facing a very hefty bill. So it’s always better to file your taxes on time, even if you can’t pay them right away. You can work out a payment plan with the IRS if you need to. But don’t risk getting hit with a big bill down the road by skipping out on filing your taxes.

In most cases, the reduction that we negotiate with the IRS is substantially less than what is owed (see some of our case studies), so taxpayers are able to afford our representation and are happy to pay such a decrease in taxes owed. Also, the process generally takes some time. Usually months and often up to a year. During this time the taxpayer is not continually accruing fees and penalties, so it gives the taxpayer more time to save and get back on top of the situation. In addition, If you are a low-income taxpayer who cannot afford professional tax assistance or if you speak English as a second language (ESL) and need help understanding your taxpayer rights and responsibilities, you may qualify for help from a LITC that provides assistance for free or for a nominal charge. The LITCs are generally operated by nonprofit organizations or academic institutions.

First of all, don’t ignore your tax problems. Ignoring an IRS tax problem is a big mistake that many people make. If tax debt goes ignored, interest and penalties will continue to accumulate and create an even bigger tax

Yes, too often, people ignore their tax problems because the situation is so overwhelming and finding the answers to questions from the IRS isn’t very easy. In many cases, the largest portion of a delinquent tax bill is the penalties and interest that accrue. Penalties and interest add up quickly and can make it impossible to pay the full debt, creating a vicious cycle and more serious tax problems. Our tax experts at Franskoviak Tax Solutions have over 20 years of experience representing clients and negotiating with the IRS to secure abatement of penalties and interest, reducing any further charges that would otherwise occur.