Tax Debt Help
Tax debt help is offered by a variety of companies, organizations, firms and agencies that want to enable a taxpayer who has accrued tax liability to help themselves reverse the cycle of debt. In order to effectively offer assistance, a firm must have the full cooperation of the debtor needing the assistance. This means that all available financial and income records must be produced for review by the tax debt helps agency.
Since owing money for taxes is the only debt legally allowed to garnish wages and liquidate bank accounts, it is advised that this liability be paid off first. Taxes aren't a preferred option, but required of everyone: "Render therefore to all their dues: tribute to whom tribute is due; custom to whom custom; fear to whom fear; honour to whom honour" (Romans 13:7). Tax debt helps to determine the order of repayment priority to all debt.
If tax debt help assistance is required, multiple agencies will offer an proposed contact plan to meet with all creditors in order to design a debt payoff plan of action. The Internal Revenue Service (IRS) offers assistance free of charge. This is advantageous for those who have a limited budget to work with and are in need of professional help. These meetings can be communicated over the telephone, through email or in person. On a rare occasion advisors may come to a place of residence if the other methods of meeting can not be arranged.
Tax debt helps can be provided by any number of professionals including a Certified Public Accountant (CPA), a Tax Attorney, or an IRS Certified Enrolled Agent. A CPA is a special designation given to an accountant who has passed a national uniform examination and has met other certifying requirements; CPA certificates are issued and monitored by state boards of accountancy or similar agencies. A Tax Attorney advises individuals, business concerns, and other organizations concerning income, estate, gift, excise, property, and other federal, state, local, and foreign taxes. A Tax Attorney also prepares opinions on liability from prospective and past transactions. They are one of three professionals who can represent clients in tax-related litigation.
IRS Enrolled Agents are experts in United States taxation law. They have to pass an IRS exam given annually that 80% of applicants fail. IRS Enrolled Agents are certified to work in government and private industries offering tax debt help and can also legally represent a taxpayer in court. The three mentioned experts are the only three that can legally represent a taxpayer in a court of law. Anyone else that makes this claim is committing an act of fraud in which the taxpayer is responsible for.
Tax debt relief is needed for persons who have failed to file returns and therefore are being pursued by the IRS for compensation of back taxes. These back taxes are based on "Substitute For Return" (SFR) filings which the IRS filed for those negligent in doing their own. These returns are constructed from the W-2's and other notifications of income that are filed by employers to one's social security number. Professional assistance is needed especially when returns are left to the government's SFR's over an unspecified period of time but is marked by significant amounts owed and repeated attempts by the IRS to gain repayment that the taxpayer ignores. Relief from tax debt will often require litigation and a professional attorney experienced in this kind of debt. Relief is possible without imprisonment; however, criminal suits are possible and imprisonment assessed at one year of incarceration for each year of unfiled taxes.
Delinquent taxpayers become targets of an IRS investigation for numerous reasons. Other than deliberate refusal to pay taxes, those unpaid taxes are the result of misunderstandings of tax law code, death in the family, a serious illness, not enough money to pay what they owe, failure to withhold enough from their pay, changes in financial circumstances, among other reasons. Taxes still are due regardless of any situation. When the IRS has attempted to get a delinquent taxpayer to make good on his end without success, the alternative action - following repeated notifications, penalty accrual, wage garnishments - is prosecution. Tax debt relief is available by requesting the IRS Taxpayer Advocate Program or seeking a professional attorney for help.
Tax debt relief covers several aspects of assistance: wage garnishment, innocent spouse involvement, bank levies, bankruptcy, payroll tax problems among other situations. Ignoring these situations from the time they begin is usually the greatest reason that people end up in this kind of trouble. It cannot be stressed enough that taxes are an unavoidable part of the American income system, and despite one's loathing of the system, if the duty to pay is ignored or refused, an accountability will be required. Unpaid taxes will eventually be criminally prosecuted unless the problem is addressed and assistance is sought.
Jesus set the example for taxpayers when He replied to the trick question posed about the tribute money to the Roman Caesar. "But Jesus perceived their wickedness, and said, "Why tempt ye me...Render therefore unto Caesar the things which are Caesar's; and unto God the things that are God's" (Matthew 22: 18,22). Avoiding payment to the government its just due, which is primarily used to provide for the common good, is sin. Circumstances that cause unavoidable delinquency are still unacceptable, but can be negotiated with professional tax debt relief assistance. Instead of ignoring the situation, a responsible taxpayer will find a way to eliminate the problem and get back to a responsible state of affairs with God, the IRS and Country.
Tax DebtTax debt in the United States is estimated by the IRS or Internal Revenue Service at $112 billion dollars and growing due to inadequate staffing to work on the collections of that debt. They are no laughing matter because when an individual has this problem and any type of collateral, the collateral can be forced to be liquidated in order to pay the bill. Recently the IRS has been given the ability to hire private collectors as part of the American Jobs Creation Act of 2004. Private tax collectors can keep as a commission 25% of any tax debts that are collected.
Many believe that outsourcing the collection to be a bad idea. Some collectors are very abusive, deceptive and use illegal means in order to attempt to collect. The FTC or Federal Trade commission received 34,543 complaints from consumers about collectors last year. That number is expected to rise. Unacceptable tax debt collection techniques include; calling all hours of the day and night, using obscene abusive language, calling borrowers at work, threatening jail time or other actions the collector can't legally take, and revealing alleged tax debts to a third party including employers, parents, children, friends, and neighbors.
Another reason why outsourcing is not as effective as the IRS utilizing their own collections department is the fact that the IRS has more legal right to collect in ways that private collectors do not. The IRS can garnish wages, private tax debt collectors can't. The IRS can also retain a portion or an individual's entire federal tax refund, tax debt collectors can't. The IRS has the right to demand the sale of collateral, such as homes, cars, and boats and the option to remove money directly from bank accounts. If an individual finds themselves in the midst of tax debts, it is advised to seek professional help as soon as possible. In the Bible, Romans 13:8 says "Owe no man anything", this includes taxes.
Collecting these funds are a fundamental function of government and it has been noted that outsourcing this function to private tax collectors reacts badly with the IRS's already negatively perceived reputation. For example: California referred over $2 Billion dollars to private collection companies in the past, only $50 Million dollars or less than 3% was recovered. The state of California paid $5.5 Million dollars as commissions to collectors plus additional administration expenses. This does not seem an effective way for the United States government to collect from the public.
Settlement debt relief is a different way to ease burdens than consolidation. In fact, this option purports to be a more effective way to end snowballing debt that is near impossible to repay under regular payback plans. This is structured to promote a greater reduction of the total amount to be paid back than the reduced rate debt consolidation payments. Consolidation may be provided at a lower rate of interest than the original amount, but the entire amount of principal plus interest must be repaid. Choosing to settle debt can reduce the total balance by sometimes 30% and up to 60% of the original obligation. Of the two resolution methods, both of whose ultimate option is bankruptcy, settlement is the least financially demanding option to clear the burden of debt.
Unlike the consolidation solution, which is sponsored by credit card companies, settlements are structured and negotiated by attorneys who are paid a fee for their services. However, the overall agreement will still be only about one-fourth of that if repaid by the consolidation method. The settlement debt relief solution also completes repayment of the obligations in a tenth of the time as consolidations. Companies that offer this service also claim to end any further attempts to collect obligations by creditors following the negotiated settlement. This prevents collection agencies from attempting to continue to hassle the consumer. A locally affiliated attorney monitors the especially opened savings account from which the creditors are paid off as they negotiate with the attorney on the consumer's behalf. The settlement debt relief program can be ended by the client at any time if they decide to opt for a different repayment plan such as refinancing a mortgage. Attorneys deal directly with the creditor who must provide a written statement with detailed proof of rights to the debt collection. Upon proof and negotiation with these companies, the payment is sent by mail, phone within thirty days, and occasionally overnight to settle the debt once and for all.
"And he said unto them, Take heed, and beware of covetousness: for a man's life consisteth not in the abundance of the things which he possesseth." (Luke 12:15) Settlement debt relief programs are an option to the overwhelmed debtor who is in arrears and collection agencies are already on their backs. However, one must closely read between the lines of any negotiators contract and determine if these attorneys, who are often civil litigation and personal injury lawyers, will truly help their situation. This financial option is meant to be a way to assist debtors to end their obligations within the parameters of fair legal credit practice. With honest attorneys who work to enact a quick settlement, relief will be obtained.