An offer of compromise can allow taxpayers to pay less than the IRS alleges they owe. It is extremely common to resolve tax debt matters in this manner. But an offer in compromise is only one particular manner for the discharging of tax debt.
Besides making mistakes that place taxpayers in a bind, the IRS also sometimes conduct seizures that prove to be illegal. Perhaps as many as 30 percent of such seizures violate the law in some manner.
A common complaint concerning the IRS is the little time they give taxpayers to challenge certain determinations. Yet the IRS recently announced businesses and individuals will have additional time to bring claims concerning levies and seizures of property.
There is a little bit of good news here. Social Security benefits are immune from garnishment from a wide variety of debts. If you have outstanding credit card debt or medical bills, your social security benefits are safe.
The short answer here is, yes.
The IRS has a number of tools at its disposal to get individuals to pay their taxes. The penalties they implement can be severe.
Despite claims of IRS reform, there are no signs that there will be less enforcement concerning IRS regulations. In fact, the IRS appears to be paying attention to regulations that just a few years ago they did not aggressively enforce.
The new tax law overhaul places a $10,000 cap upon deductions on federal returns pertaining to state and local taxes. Yet a number of states are challenging this cap.
Prior U.S. Supreme Court decisions have placed restrictions on state when it comes to taxing interstate commerce. However, its most recent case upon this issue appears to change all of that.
While the number of married people in the United States dipped in recent years, they still pay a substantially large share of federal income taxes. Making up approximately one-half of our population, they pay 74 percent of our total taxes.