Are You Losing Your IRS Refunds Every Year?

Losing IRS Refunds

Are you getting tired of having refunds every year applied towards your unpaid taxes? The solution is rather simple. If you are an employee, change your withholdings so that you are having less withheld. I always tell clients in this situation that the best you can do is own $1 on future tax returns. When you have refunds you are in essence making an interest free loan on the money to the government.

Secondly, if you are married and filing jointly, you can protect your refund by filing an Injured Spouse Allocation—form 8379. This will allow you to calculate how much of the refund was generated by you and you can have it paid to you rather than have it applied to a debt that is not yours. Too many taxpayers are filing married filing separate to protect the injured spouse’s refund. This is a very expensive way to protect a refund. Many deductions and credits are lost by filing married filing separately and the taxpayer would get more of a refund filing a joint return with the Injured Spouse Allocation.

Scott Allen E. A.

Tax Debt Advisors, Inc

www.taxdebtadvisors.com

IRS Appeals, IRS Problems, Tax Debt, Unfiled Tax Returns

Mesa AZ Tax Preparation

Regular Post

Written by Scott Allen

5 October 2010

IRS Trust Fund Recovery Penalty

Internal Revenue Code Section 6672 (a) covers the IRS Trust Fund Recovery Penalty. This is often referred to as the 100% penalty which indicates how serious the IRS is to punish taxpayers who fail to turn over trust funds. Trust funds are withholdings that the employer holds back from employee pay checks. They would include Federal withholdings, Social Security and Medicare taxes. The term trust means that the employer is holding these funds from a position of trust and is responsible to collect and turn them over to the IRS on a regular basis.

The person or persons responsible for paying these taxes would include but are not limited to the Chief Executive Officer, and any other person authorized to pay the funds and have check signing authority. The IRS can assess this penalty against anyone who they consider financially responsible.

Many businesses that get in financial trouble and no longer can borrow from legitimate sources such as banks, issuing stock or bonds “borrow” from the IRS by not paying funds held in trust. The intent is to catch up when business gets better. With 100% penalties, it would be better to visit the local loan shark—you would get better rates.

If the IRS has determines that you are responsible for paying back trust funds, get professional help immediately. The IRS will often try to justify going after many individuals without knowing for sure who is really responsible. This shot gun approach can be devastating financially and the longer you go without contesting the position of the IRS on your responsibility, lowers your chances of being relieved of this tax debt. Trust funds and the related IRS trust fund recovery penalty cannot be discharged in a bankruptcy.

Scott Allen E. A.

Tax Debt Advisors, Inc.

www.taxdebtadvisors.com

IRS Appeals, IRS Problems, Tax Debt, Unfiled Tax Returns

irs penalties

Regular Post

Written by Scott Allen

15 September 2010

What is the effect of an Arizona IRS lien filed in the wrong county?

Arizona IRS lien filed wrong

An Arizona IRS lien filed the wrong county is not valid against any property you own in another county. However, any IRS tax lien whether it is filed in the right or wrong county will be picked up by the credit bureaus and lower your credit score.

If at a later date you decide to purchase property in the county where the tax lien was incorrectly filed, the tax lien will automatically attach to property acquired after the filing of the tax lien. IRS tax liens have a statute of limitations of ten years. Call me if you have any questions regarding a tax lien filed in the wrong or right county at 480-926-9300. Thank you.

Scott Allen E. A.

Tax Debt Advisors, Inc

www.stopirsaction.com

IRS Appeals, IRS Problems, IRS Tax lien problems

irs liens