TAX LIENS
Settle, Remove and Improve Your Credit Plus Taxes &
Bankruptcy
Seems to be one of the most talked about
topics. How to settle taxes, remove them from your credit
reports and generally rid yourself of the whole unpleasant
experience. We'll cover it all and hopefully you'll be moving
on in no time to less tax debt and better credit plus peace
of mind!
How To Settle Back Taxes
There are countless stories of families, individuals and businesses
being wiped out by the IRS. Tax issues are not uncommon. About
ten million Americans are tax delinquent and another seven
to ten million have not filed their tax returns in years.
As astounding as these figures might sound they should hardly
be surprising. With more new complex tax laws being established
every year more and more Americans will end up at some point
in debt with the IRS. Now don't get discouraged.
There is one good item of news. It is now
easier than ever before to resolve tax issues with the IRS
with an Offer in Compromise. Tens of thousands of Americans
have discovered they can legally and easily solve their IRS
problems. Many of these tax claims will be forgiven for as
little as five or ten cents on the dollar, or even less. The
IRS penalizes millions of taxpayers each year for not paying
back taxes. They have so many penalties that it's hard to
understand which penalty they are hitting you with.
The most common penalties are: Failure to
File and Failure to Pay. Both of these penalties can substantially
increase the amount you owe the IRS in a very short period
of time. To make matters worse the IRS charges you interest
on penalties. Many taxpayers often find out about IRS problems
many years after they have occurred. This causes the amount
owed to the IRS to be substantially greater due to penalties
and interest. Some IRS penalties can be as high as 75%-100%
of the original taxes owed.
Often taxpayers can afford to pay the taxes
owed, however the extra penalties make it impossible to pay
off the entire balance. The original goal of IRS imposing
penalties was to punish taxpayers to keep them in line. Unfortunately
they have turned into additional sources of income for the
IRS. The IRS does abate penalties. Therefore before you pay
the IRS any penalty amounts, you may want to consider requesting
the IRS to abate your penalties. Learn how you can settle
you back taxes at almost pennies to the dollar by downloading
The complete guide to solving your tax issues - The
Complete Guide to Resolving Your Tax Issues or let a professional
debt negotiator do it for you and it's incredibly affordable.
Learn
more.
[ Finally, according to the IRS, offer and
compromises are very doable- they're done everyday and here
is a little of what the IRS considers: Generally, we approve
an Offer in Compromise when the amount offered represents
the most we can expect to collect within a reasonable period
of time. Although each case is evaluated based on its own
unique set of facts and circumstances, we give the following
factors strong consideration in the evaluation:
The taxpayer's ability to pay
The amount of equity in the taxpayer's assets
The taxpayer's present and future income
The taxpayer's present and future expenses
The potential for changed circumstances ]
[Get
the complete guide to settling taxes or get a free
consultation with a negotiator]
The IRS Code states: "We will
accept an Offer in Compromise when it is unlikely that we
can collect the full amount owed and the amount you offer
reasonably reflects the collection potential." Internal
Revenue Code, section 7122.
Improving Your Credit
The ugly truth: Tax liens remain on your credit reports for
7 years from date satisfied not filed. If they remain unpaid
they can stay longer, however they are only collectable for
6 to 10 years with some provisions see this
link for more. Once a tax lien hits your credit
reports you are in serious trouble. Not only do you have
the IRS after you but now the lien has been recorded against
your credit reports for the whole world to see everytime you
apply for credit.
While the IRS is not known for negotiating credit ratings
there is a way to ensure maximum results.
First, you will want to determine that you
do in deed owe the taxes that are listed on your credit reports.
You'd be surprised how many credit reports have inaccurate
ratings. If you have the documentation from the IRS about
how much you owe then send off a request to the credit bureaus
to validate the lien that's listed. The
credit bureaus will begin an investigation wherein they'll
send a request out to verify the tax lien. If it's unverifiable
it will be removed- end of story. If it's reinserted by the
IRS, you must be notified
within 5 days of the reinsertion along with a valid reason
why. If it is verified as accurate by the IRS to the credit
bureaus then you need to decide how you'll go about paying
it. Will you simply pay it in full, will you ask for an abatement,
will you use a tax negotiator?
These are all questions that only you know the answer to.
Once it's settled, paid dismissed etc.,
you then need to wait about 3 to 6 months and send
another request to the credit bureaus to verify it. Chances
are now that the IRS has been paid they won't even bother
responding to the bureaus request and instead of being listed
as "paid tax lien" it may be removed. On the other
hand if you do not owe the tax lien and you have proof then
you need to send the proof to the credit bureaus and the IRS
and ask that it be dismissed. You should not have to deal
with a negative tax lien if you never owed it to begin with.
There are three ways a lien is listed;
-Paid tax lien (you simply paid it)
-Settled tax lien (you settled it and the IRS reported it
as such)
-Dismissed tax lien (the IRS found reason it was invalid)
You need to determine which fits your situation
but remember you do not have to settle for a "dismissed
rating" if the darn thing was a mistake to begin with.
Demand it be completely removed. If you owe state or federal
taxes, you need to resolve them otherwise you risk a levy
or lien against you your home or property.
Can taxes be included in a bankruptcy
filing?
According to Doney.net, In order for tax to be discharged
ALL of the following must be met:
-Returns on which the tax is based must
be due more than 3 years before the filing of the bankruptcy;
Note: Income tax returns are usually due
on the April 15 following the end of the tax year, but can
be due later if the 15th falls on a weekend, or if the due
date was extended.
-Returns must have been filed more than
2 year before the bankruptcy is filed; (Unfiled returns are
not dischargeable in Chapter 7, but may be in Chapter 13.)
-If the tax is from an assessment, must
be assessed more than 240 days before bankruptcy is filed.
-941 withholding tax on employees cannot
be discharged.
-A Chapter 13 plan must pay any tax which
is not discharged.
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