Tax problems are stressful – they cause loss of sleep and enormous pressure. The biggest mistake people make is ignoring them. An even bigger problem – that is particular to April 15th is that people often do not file their return or seek an extension because they know they have a tax liability and don’t have the cash.
Did you ever see the movie Pretty Women? In that movie, Julia Roberts goes shopping on Rodeo Drive and after a spending spree courtesy of Richard Gere’s credit card, stops in the store that refused her service the day before (when she was dressed street wise, not street smart) and shows the shopping bags off to the two snobby clerks and says, “Hi, Remember Me? You told me to leave. BIG MISTAKE, REALLY BIG MISTAKE, I have to go now. ”
Well the same is true if you fail to file your return because you’re afraid you don’t have the money. BIG MISTAKE – REALLY BIG! Filing and paying are separate issues. Failure to file will result in a 25% penalty on the tax you owe – which is a penalty over and above any penalty you’ll pay for being late. The late penalties for failing to pay – accrue over time – but it’s not that bad when you factor in the low Federal rate you pay on taxes that are outstanding. In the end, when you’re late on paying your Federal taxes, the amount of penalty and interest you pay over an installment plan is less than what you pay on a maxed out credit card.
As to all tax problems – there are good solutions available, at reasonable cost, to release levies and often settle the debt. Unlike many firms recently claiming to handle tax problems, THAV GROSS has been solving tax problems for individuals and businesses in the area for 33 years. If your bank account has been levied or wages garnished, the first step we do is contact the IRS or the State and work to get your money released.
If you have unfiled tax returns, we will help you get the returns filed. If unpaid taxes are the issue, we will analyze the years and dates to determine if the statute of limitation has or is about to run. If the statue has run or is about to run – the plan then is NOT to pay!
Income taxes are also sometimes dischargeable in bankruptcy – so we also examine that option to eliminate the tax. Most attorneys will tell you that taxes are not dischargeable in bankruptcy. They are wrong –income taxes are dischargeable if you meet the time requirements.
For both income and payroll tax liabilities – an Offer in Compromise with IRS and now with the State is also a possible way to settle the tax for pennies on the dollar (and when it works – it’s a great option). On an Offer – we can tell you if you meet the parameters or not right away. If you do – it’s worth pursuing. If you don’t – then applying for an Offer is a waste of time and your money.
The important point here – is that there are options and smart avenues to solve the problem. You should call us today – for a FREE CONSULTATION.
Have a great weekend- and don’t forget to attend our FREE seminar on Wednesday, March 25th – “Debt Free this Year” – we cover taxes there also! For information see below.
Be sure to listen in on Saturdays from 8:30 to 10 AM on WDFN 1130 AM – on iHeart by CLICKING HERE– and watch the show on TV 20 on Sundays at 11 AM. Law and Reality is not just information – it’s entertainment!