Problems
Unfiled Tax returns
You have not filed or paid taxes for past years. The IRS and the State will file a substitute for return for any unfiled tax year. The IRS and or State will then start collection on that amount
Lien
A lien is a statutory right obtained by the government to enforce a claim against the property of a person owing taxes until the debt is paid. The IRS and State can make your life miserable by filing federal and State tax liens. Because they are public records they will show up on your credit report. This often makes it difficult for you to obtain financing in order to pay the back taxes. IRS will seize real estate and personal property too.
Levy
An IRS or State levy is the actual action taken by the taxing authority to collect taxes. The IRS will issue a bank levy to obtain your cash in savings and checking accounts. When the IRS levies a bank account the bank is required to remove whatever amount is available in your account that day (up to the amount you owe) and send it to the IRS.Back Payroll Taxes
The IRS and State are very aggressive in their collection attempts for payroll taxes. The penalties assessed on delinquent payroll tax deposits or filings can double and triple the total amount owed in a matter of months. We believe that it is critical to have representation in these types of situations.
Wage Garnishment or Levy
A wage garnishment or levy is a very powerful tool used to collect taxes owed through your employer. Once a wage garnishment is filed with an employer, the employer is required to collect a large percentage of each paycheck. The paycheck that would have otherwise been paid to the employee, instead will now be paid to the IRS or State. The wage garnishment stays in effect until the balance is fully paid or until the IRS and/or State agree to release the garnishment
Tax Penalties
The taxing authorities penalize millions of taxpayers each year. Since taxpayers often find out about tax problems many years after they have occurred. These penalties can substantially increase the amount you owe the IRS or State in a very short period of time. Some IRS penalties may be as high as 25% of the original taxes owed assessed per month Penalties can be abated or waived. Before you pay any penalty amounts, call Redding & Associates and we can determine whether you qualify for a penalty abatement.