Debt-Ceiling Deal Comes With High Costs: The Ticker Bloomberg
(Corrects the Republicans' stance on taxes in eighth paragraph.)
The world can feel some relief as U.S. lawmakers close in on a deal to prevent the government from reneging on its bills. It's too early for a hallelujah chorus, but as Monday morning dawned in Asia , optimism lifted the dollar against the yen and Swiss franc, and stock-index futures pointed up.
The dysfunction may be about to end, but the deal to lift the $14.3 trillion debt ceiling flirts with danger. It could create an unwelcome drag at a difficult time for the U.S. economy. While the spending details, and their timing, are not yet known, the up-front cuts, combined with about $250 billion in expiring unemployment benefits, the end of the temporary payroll-tax cut, and the winding down of the stimulus program will present major obstacles to the recovery.
Here's what is known so far about the emerging compromise: It would cut spending by about $1 trillion over 10 years. Then it calls on Congress to shave another $1.5 trillion from long-term debt by 2021. If that package of cuts doesn't pass Congress by year's end, punishing reductions kick in government-wide, including in Medicare and defense.
Offer in Compromise | IRS Tax Debt Relief
YOUTUBE INFO The Offer in Compromise program was established to grant tax debt relief to to people who cannot pay their taxes. An Offer in ...
what information is need for a Tax debt relief company to work on past tax debt with the IRS?
What personal information would I need to give to a company in order for them to contact the IRS about my tax debt?
I would think SSN and Address would be what they would need. I personally would not do anything over the phone with someone I DIDN'T KNOW!! I would keep my eyes wide open for scams out there. Do some checking on the company and if they haven’t provided you with a service, then I think you don't owe anything.
You've stated that you agreed to pay them $1800 to work with the IRS on your behalf, but have no clear idea of what they will do for you. You don't remember signing any POAs (something they'll need to file with the IRS in order to talk to the IRS)...
How much do you owe? Why aren't you on a payment plan? Have you tried to borrow the money owed?
Freedom Tax Relief is a reputable company and is BBB listed. Chaeck them out.
If I let a mortgage go into forclosure will the tax debt relief act signed in 2007 help me?
This was my principle residents for three years. The original loan was for 84,000. I refinanced and it came up to 94,000. I refinanced again and it came up to 102,000. I know probably it might cover only the original loan of 84,000. Will the relief act not the bailout help me? How much phantom tax would I have to pay on the remaining 18,000? Thanks for your answers!
The best thing to do is AVOID foreclosure. If you are having trouble affording your mortgage, there are a few options you should try:
1. Short Sale
2. Loan Modification
Since the Debt Relief Act passed in 2007 any homeowner that sells their primary residence via short sale is not responsible for tax implications or loss incured by the lender.
A loan modification may help make the loan affordable, but you will usually have to pay a fee for this service. Try www.NationalShortSaleOffice.com. They are one of the less expensive companies out there and are reputable.
Good luck!
Tax debt relief HELP!!!?
My roommate is in debt $12,000 with the IRS and it just keeps stacking up, we barely make it by as is and have no money to pay a tax debt relief company to help, does anyone know of any that are free or dont require any money up front???
No my roommate didnt just say, "I'm not gonna pay my taxes" she doesnt have money to pay it, when you have about $100 left after bills it's kind of hard to pay $12,000 off. our government sucks because if you are middle class you get taxed like a rich person and paid a small step above lower class.
When she received her stimulus, it wasn't a stimulus it was a statement saying she owed $10,000
No, since tax debt comes from committing tax fraud you need big guns to help. The standard retaining fee is 10k. No one will touch your roommate without full pay in advance, it is already abundently clear that they are a dead beat and would not pay if they could get away with it.
The IRS will start garnishing their wages soon, your roommate can not simply just decide to phuck the rest of us forever.
Go to nonprofit credit counseling agency in your area.
FYI: Landlord, NOT all tax debt is due to fraud--that's making unwarranted assumptions.
Helen, EA in PA
You can start making minimum payments of $50.00 per month until you get off your feet. Obviously, if you have accumulated debt to IRS, you made money and for some unknown reason were not able to pay.
If you were able to get a stimulus payment, they would apply that amount to your debt.
Suck it up. Stop complaining and show some effort. Speak with the taxpayer advocate's office and see if they can help you. Explain to them your hardship and they should be able to work with you.
If she can't afford $200, she has to prove that based on her income she can't afford it. The IRS calculations are stiff. No cable, no cell phone....those are luxuries, not necessities.
Yes, your roommate got the stimulus--and a letter saying that just like any other refund the $300-$600 was applied to her debt.
PS, to be $10,000 plus in debt to the IRS usually happens because of 1 of 3 problems:
Self-employment income with no handle on the tax situation.
Wage income with the W-4 marked exempt or something ridiculously wrong.
Having claimed credits and such in the past they she wasn't entitled to and was asked to pay it back.
1. Divide the amount you owe by 60 and if you can pay that amount call the IRS and request a Streamline Installment Agreement.
2. If you cannot make any payment, you can provide a full financial statement (form 433F)and if the IRS agrees that you have more allowable expenses than income, they may put you in a Currently Non-Collectible Status and you will not have to make a payment until your financial situation improves(the IRS will look at it each year)
You may find the IRS demanding of full payment, depending on who you get on the phone. If you cannot get them to work with you, paying someone to represent you may be your only option.
Are those advertised "Tax Relief" companies for real? Can they really get the IRS to reduce tax debt?
drdrakesr, Debt relief is a common problem many citizens are now experiencing. All legitimate debt relief service providers will consult with you for free. http://www.debtreliefreview.com Try visiting serveral debt relief services and inquire about your questions and compare thier answers. You should be able to tell which ones are providing shady advice.
Hope everything works out.
Download Form 9465 Installment Agreement Request and complete the form and mail to appropriate address. IF you owe 25K or over also download Form 433-F and submit all requested information.
IRS usually grants 60 month installment agreement, divide the amount you owe by 60 that will be the minumum payment IRS will accept.
up to $1, 499.00 the minumum payment IRS will accept is $25.00.
OR visit your local IRS office in your city, or call 1-800-829-0922.
But don't waste your money on a middle man they all lthey do is fill out the above forms and mail them in to IRS>
A reduction in your tax debt is made through an Offer in Compromise. This is a settlement with IRS where you pay less than 100 cents for every dollar you owe and IRS forgives the rest. It will do this if it determines you are offering as much or more as it could collect from you through monthly payments or seizing your property. Filing out the forms can be tricky.
The amount you have to pay is, to use the IRS jargon, is "an amount that represents the reasonable collection potential of the account." This is a lump sum equal to what you could get from the equity in all your assets if they were sold at a quick sale, generally 80% plus 48 times what you could pay monthly on an installment agreement.
For example, if you had a car worth $10,000 and owed $5,000 on it and nothing else and IRS said you could make payments on your account of $100 per month you would have to offer a lump sum of 80% of the $10,000 minus the $5,000 owed = $3,000 PLUS 48 times $100 = $4,800 for a total of $7,800 on whatever you actually owed. Your own affairs are likely to be more complicated.
I am an enrolled agent, a tax specialist licensed by the US Treasury Department Office of Professional Responsibility (not an IRS employee) to represent taxpayers the same way as attorneys and CPAs and smooth talking TV pitchmen and specialize in clients who have substantial outstanding tax liabilities or long periods of failing to file returns just like the companies that advertise on TV except that my fees for a typical case will be about a third or less of what they charge.
I got an offer for a client who owed a quarter million dollar liability accepted for 1 cent on the dollar. Many other clients have not qualified at all. The average nationwide for accepted offers is closer to about 17 cents on the dollar. On a case by case basis, this figure is meaningless. Your case might also dictate an entirely different approach including getting the whole account put on ice for a few years or filing for bankruptcy or actually paying it in full over several years.
If you would like some additional information outside this forum, you can send me email through my profile. If you want to deal with a local practitioner, your best bet is, like me, an enrolled agent with a collection background.
Any one ever used Freedom Tax relief to file an offer to compromise a tax debt?
Generally, if they advertise on TV, you should stay away from them.
Find a CPA or EA in your local area who has experience filing the OIC.
Has any one ever used a tax relief attorney to help with tax debt?
DO NOT call any them that advertise on TV. They tend to be huge ripoffs.
Find a CPA or EA in your area who has experience in filing "Offers in Compromise".
Is it worth to use those debt consolidation companies for tax relief?
I want to get all my financials squared away with the IRS-- anyone know the average rate those "tax relief" companies charge? Are they worth it??
Debt consolidation companies may be able to help with other creditors but can't get you any relief from taxes because IRS will demand payment ahead of unsecured creditors. You or someone authorized to represent taxpayers would have to handle that job. The tax relief companies that advertise on TV seem to promise that they can get you a pennies on the dollar deal and sometimes can but can never guarantee it. For a typical tax delinquency you are probably looking at fees in the $4,000 range, plus or minus a thousand depending on how much you owe. I cringe at those rates since they are about three times or more what I charge my clients.
Tax debt relief company took my money do they have the right?
So I am working on getting my money back, to do so I have to prove that this company could not have worked on a case with the IRS like they have claimed to have done. The company has taken $1800.00 from me. I contacted www.taxcarepros.com on the web seeking assistance with dealing with the IRS about my past tax debt. Long story short, I handled my problem with the IRS on my own by arranging a payment plan. TaxCare Professionals at no point in time got my SS#, my W2's, a signed Power of Attorney, or a signature on thier "Payment Agreement" form. I tried contacting TaxCare until I was blue in the face about canceling whatever they had started (because they had already taken money from my account). It wasn't until a month later when they took another $900 from me that they finally spoke with me and told me it was just tough luck. I have proof of me dealing with the IRS on my own (a letter from the IRS). Could they have worked on a case without my pertinant info? please help my kids a xmas
Talk to your bank about preventing any more withdrawals.
You will probably have to take this to small claims court to get a refund.
You "signed" a contract (clicking "I agree" on the net counts). It's not their fault you didn't have them do the work.
Is foreclosure debt relief still taxed or not?
Recently, there was talk that the IRS was changing its rules so that debt relief experienced by persons who lost their homes to foreclosure would no longer be taxed. What's the status on this rule change?
If you chose a candidate based on tax relief, who do you think is going to pay the war debt?
Was this really a tax cut, or more of a delayed tax?
Are you kidding? No it was not a tax cut it was an increase. I don't care about that 300 dollar refund? What a joke? All taxes went sky high and mortgage interests went up. That was their way of putting money back into the economy of the country. But on the other end they increase the tax to the states and then the states increased property taxes and they are foreclosing on so many homes right now our banks are land rich and cash poor. But guess what during that time the banks are now 3/4 owned by foreign governments and that means we are broke. The Democrats in Congress are now stuck holding the bag, so when they raise taxes to keep us in business, don't blame them blame Bush Clan forever. He broke us down in spirit and in finance, and the only spirit he gave us was hatred and war. What kind of leadership is that ? Hitler type that is what type. Same case scenario. Read it www.history.com on all the other dictators they are all the same worms, cut them in six pieces they still live but now there are more. I say squash them all, all six heads!
Tax Debt Relief: How Can it Help You?
One of the most inevitable and obligatory part of the American income system is tax. Even though it is one of the most disliked part of being an American, refusal and the neglect of duty to pay such taxes requires accountability. Taxes are unavoidable. Taxes are financial charges or other levy upon taxpayers that is imposed by the state or country and disregarding it is punishable by law. Taxes unpaid will cause criminal prosecution unless such problem is well addressed.
Disregarding the obligation usually is one of the reasons why the problem arises. The failure to pay taxes and to file income tax returns in the IRS will most likely become a bigger problem if ignored. If such problem arises, a person will most likely need a tax debt relief.
There are many methods how the IRS collects unpaid taxes. Methods are sometimes harsh, but it is in the federal law that a taxpayer should abide. These methods are only done depending on the situation of the taxpayers. These methods are:
Tax Lien – This is the first step of the IRS to collect individual’s owed taxes. The IRS will legally claim of a taxpayer’s assets to guarantee payments. However, tax lien can be removed if the taxpayers already had paid the tax owed or if the taxpayers can assure the IRS that the taxes owed can and will be paid. Tax Levy – One of the harshest mechanisms of the IRS to collect unpaid taxes, to assure the tax liability, IRS will legally take the taxpayer’s assets. IRS is able to take the person’s money in the bank account, wages, cars and houses, and anything else that has financial value. However, IRS do give a 30 days notice before the process will be started to give taxpayers enough time to take actions. Wage Garnishment – It is also a form...tax debt relief - News
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Kane County Chronicle Debt Relief - With foreclosures also increasing, H&R Block tax professionals can explain a tax relief opportunity available to homeowners who have had home New Tax Breaks Offered This Year
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NBC13.com There's also a tax break for people who lost homes to foreclosure. It used to be that the debt forgiven by the bank was taxed as income. IRS guidance on `What Ifs' of a recession Owners Trying to Avoid Foreclosure May Get Help Under Tax Laws Tax Resolution Services Co. Helps More Taxpayers Qualify for IRS
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Businesses Need Temporary Tax Relief - Forbes Businesses Need Temporary Tax Relief Under current law, if a company purchases its own debt at a discount, it is required to pay income tax on the amount of the discount. |
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IRS speeds lien relief to homeowners trying to refinance - Lincolnton Journal IRS speeds lien relief to homeowners trying to refinance Filing a Notice of Federal Tax Lien is a formal process by which the government makes a legal claim to property as security or payment for a tax debt. |
