Do You Owe the IRS Money That You Can’t Pay? Are You a Year or More Behind in Filing Your Income Tax Returns? Are You Behind in Your Payroll Tax Filings or Payments? Our Tax Relief services and Tax Resolution assistance can help you get tax relief!
Cash Tracks Financial offers more than just tax prep. They do back tax returns, going back at least six years! If you owe hefty back taxes, they're here to resolve it with a personal touch - no faceless 800 numbers.
Innocent spouse relief is a provision under U.S. tax law designed to alleviate financial responsibility for a tax liability due to errant reporting by a spouse. When married couples file joint tax returns, both partners are typically held jointly and severally liable for any tax liabilities. This means both are individually responsible for the full amount owed. However, circumstances can arise where one spouse was unaware of errors, omissions, or discrepancies caused by the other, leading to unexpected tax debts or penalties.
Innocent spouse relief allows the wronged spouse to petition the IRS to relieve them from these liabilities. To qualify, the petitioning spouse must demonstrate that they did not know, nor had reason to know, about the inaccuracies on the return when signing it. Moreover, it must be deemed unfair to hold them accountable for these discrepancies.
There are three types of relief to consider: Innocent Spouse Relief, Separation of Liability Relief, and Equitable Relief. Innocent Spouse Relief focuses on alleviating liabilities from understated taxes. Separation of Liability Relief divides the tax liabilities between spouses, suitable for those who are divorced or separated. Equitable Relief can be granted when neither of the other types of relief apply but would be inequitable to hold the spouse responsible.
This relief provides a significant reprieve for individuals unsuspectingly caught in tax-related issues due to their spouse's actions, allowing them to pursue financial clarity and stability. Seeking guidance from a tax professional is often recommended to navigate the complexities involved effectively.
We're excited to share our latest video episode with you. This time, we're featuring Carrie Bullock, one of our incredible clients. Carrie opened up about her and her husband Robbie’s experience working with Marcelino and the team at Cash Tracks Financial.
👉 Here are 5 keys you'll learn from watching this episode:
The Importance of Filing Taxes:
Carrie dives into the challenges they faced by not filing taxes for a long time.
The Power of Recommendations:
Discover how a man in Springfield pointed them in the right direction.
Overcoming Tax-Related Fears:
Learn about their initial obstacles and how they tackled extensive tax requirements.
Positive Changes Post-Resolution:
See how addressing their tax issues alleviated worries about IRS actions.
Maintaining Confidence in Financial Partners:
Carrie shares her comfort and trust in Cash Tracks Financial after years of collaboration.
While receiving an IRS notice can be scary, approaching it with a clear plan and professional assistance can help resolve the issue efficiently. It is best to keep in mind that the IRS is open to communication, and many issues can be resolved through proper channels.
Dealing with tax debt can be a daunting task, but breaking it down into manageable steps can make the process less overwhelming. Step 1 in solving your tax debt is to determine if there is Cancellation of Debt (COD) income, and if so, identify the amount and the applicable year.
COD income arises when a debt is forgiven or discharged for less than the amount owed, and the forgiven amount is considered taxable income by the IRS. To begin, gather all relevant financial documents, including any 1099-C forms received from creditors. These forms report the amount of debt canceled and are crucial for accurately assessing your tax liability.
Next, review your financial situation for the year in question. This involves examining your income, expenses, and any other financial activities that may impact your tax obligations. Understanding your financial landscape will help you determine the exact amount of COD income and ensure that you are reporting it correctly.
Once you have identified the COD income, it's essential to explore any exclusions or exceptions that may apply. The IRS provides certain exclusions, such as the insolvency exclusion, which allows taxpayers to exclude COD income if they were insolvent at the time the debt was canceled. Carefully evaluate your eligibility for these exclusions to potentially reduce your taxable income.
By thoroughly understanding and documenting your COD income, you lay a solid foundation for addressing your tax debt. This step is crucial in ensuring compliance with IRS regulations and setting the stage for resolving your tax obligations effectively.
Firstly, it's crucial to act promptly upon receiving a notice of levy. The IRS provides a window for you to respond before the levy is enforced. Begin by reviewing the notice carefully to understand the specifics of your case.
To request a collection appeal, you need to file a Collection Due Process (CDP).The request must be submitted within 30 days of receiving the levy notice. The CDP hearing allows you to present your case and explore alternatives to the levy, such as installment agreements or offers in compromise.
During the appeal, it's essential to provide all necessary documentation and be transparent about your financial situation. This transparency can help demonstrate your willingness to resolve the debt and may lead to more favorable terms.
Additionally, consider seeking professional assistance. A tax professional such as and Enroll Agent can guide you through the process, ensuring that all paperwork is correctly filed and deadlines are met.
To avoid future levies, maintain open communication with the IRS. If you're unable to pay your taxes, contact them to discuss payment options. Proactively managing your tax obligations can prevent levies and other collection actions.
In summary, requesting a collection appeal involves timely action, proper documentation, and possibly professional guidance. By understanding and exercising your rights, you can effectively manage your tax situation and avoid the stress of a levy.
Receiving an IRS Final Notice Letter 11 can be a daunting experience, as it indicates the IRS's intent to levy your property to satisfy unpaid tax debts. However, there are steps you can take to avoid this outcome.
First, it's crucial to act quickly. The letter serves as a 30-day warning, so time is of the essence. Begin by thoroughly reading the notice to understand the specifics of your situation, including the amount owed and any discrepancies.
Next, reach out to a tax professional, such as an Enrolled Agent. Many of these experts specialize in tax resolution and can communicate with the IRS on your behalf, potentially negotiating a more favorable outcome. They understand the complexities of tax law and can help you navigate the process effectively.
Additionally, ensure all your tax returns are filed, as unfiled returns can complicate negotiations. Gather all relevant documentation to support your case, such as proof of income and expenses.
By taking prompt and informed action, you can avoid a levy and work towards resolving your tax issues with the IRS.
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The IRS Final Notice of Intent to Levy is a critical document that signifies the agency's intention to seize a taxpayer's assets to satisfy an outstanding tax debt. However, despite its name, this notice is not entirely "final" in the sense that it leaves room for taxpayer action.
Upon receiving this notice, taxpayers are granted a 30-day window to respond before the IRS can proceed with the levy. This period is crucial as it provides an opportunity to contest the levy or arrange alternative solutions. Taxpayers can request a Collection Due Process (CDP) hearing, which allows them to present their case and explore options such as installment agreements, offers in compromise, or proving financial hardship.
Ignoring the notice can lead to severe consequences, including the seizure of bank accounts, wages, and other assets. Therefore, it is imperative to act promptly. Engaging a tax professional, such as an Enrolled Agent, will be beneficial in navigating the IRS processes and procedures.
While the IRS Final Notice of Intent to Levy is a serious indication of impending action, it is not the end of the road for taxpayers. By taking timely and informed steps, individuals can potentially halt the levy process and negotiate a more manageable resolution to their tax liabilities. This underscores the importance having an Enrolled Agent to help you understand your rights and responsibilities when dealing with IRS communications.
Cash Tracks Financial offers more than just tax prep. They do back tax returns, going back at least six years! If you owe hefty back taxes, ...
