Income tax is a required tax based off of a business’ income for the year. Therefore, more income means a higher income tax. If the entirety of the income tax isn’t paid, the business is then required to supplement the loss with an estimated tax. Additionally, income that isn’t subject to income tax (i.e. dividends for shareholders, interest, rent, alimony, etc.) will also be subject to estimated tax.
If you owe back taxes to the IRS, you’ll want to consider a settlement before the IRS sends its debt collectors after you. An IRS settlement is meant to settle your entire debt for less than what you owe, to be paid off in a certain amount of time. An Offer in Compromise consists of convincing the IRS that it is financially irresponsible for them to seek repayment from you, as it will exhaust more money and resources than the debt is worth. Or, you can attempt to have the IRS abate your penalties, which doesn’t lower the real amount but lowers the back-tax penalties by a significant percentage. You should discuss the many IRS settlement options with a tax lawyer.
This notice is served by the IRS, notifying you that the failure to pay back taxes results in seizure of assets or property, or garnishment. You have 30 days to contest the notice, meaning that time is tight.
When you owe back taxes to the IRS, they may impose a garnishment order to extract your earnings from income, assignment orders, property levies, and whatever else if your creditors feel that they’re not receiving the correct repayment for your debts. Contesting a garnishment order is very difficult, which is why having a great tax attorney by your side can increase your odds.
A tax lien is when the government takes legal claim against your property, including personal property, financial assets, real estate, and so on. As soon as you receive a notice and Demand for Payment, fill out the form on this website to get an immediate consultation.