Secrets About IRS Debt<br />Types of Taxes:<br />- Direct Tax – Tax paid directly to the government by the person who owes it.<br />- Indirect Tax – Tax that can be shifted or passed on, collected by an intermediary and passed on to the government. <br />
Tax Characterizations : <br />- Proportional Taxes – A constant, uninterrupted rate of percentage towards all incomes and all income levels.<br /> <br />- Progressive Taxes – The amount of the percentage rate increases whenever your income increases.<br /> <br />- Regressive Taxes – The amount of the percentage rate decreases as your income decreases.<br />
Most Common Types of Taxes:<br />- Income Tax<br />- Retirement Tax<br />- Capital Gains Tax<br />- Corporation Tax<br />- Excise Tax<br />- Tariff Tax<br />- Property Tax- Estate Tax<br />- Personal Property Tax<br />
Personal Taxes <br />- Taxes on the total income of the individual, with some deductions permitted. <br />Business Taxes <br />- Taxes levied on the income of companies, the difference between gross receipts, expenses, and additional write-offs.<br /> <br />- Business taxes are based on the type of corporation: Sole Proprietorship, S-Corporation, C-Corporation <br />
Tax Rights:<br />- Every adult is required to submit a tax return and pay appropriate taxes.<br />- The government could audit your tax returns, if they choose to do so.<br />Can’t Pay the Taxes You Owe?<br /> - The IRS can negotiate a settlement amount, reduce interest and penalties or waive them altogether.<br />- Offer-In-Compromise – An agreement between you and the IRS that settles your tax liabilities.<br />
Consequences of Not Paying Taxes:<br /> - The IRS can file a lien against you. <br /> - The IRS can garnish your wages and seize your personal property.<br /> - The IRS can seize your personal assets.<br />
What are Audits?<br /> - Audits – An in-depth examination of what you claimed in your income tax filing.<br /> - The government conducts randomized audits every few years.<br /> - Audits depend on your income tax bracket.<br /> <br /> - The more money you make, the greater the likelihood you will be audited.<br />
Don’t Ignore Financial Problems<br /> - Ignoring financial problems will not make them disappear.<br /> <br />- Contact Allmand & Lee and let professionals counsel you on the best path in dealing with the IRS.<br />224-884-4176<br />
Evaluate Your Financial Health<br /> - Understand your current financial state<br /> - Calculate weekly and monthly expenses<br /> - Find ways to reduce costs<br /> - Contact an expert<br />
Options Other than Bankruptcy <br /> -Debt Consolidation – Combining debts so you only have one bill to pay each month.<br /> <br /> - Debt Settlement – Reducing debt amount with the agreement of both the debtor and the creditor.<br /> - Forbearance – Repayment program set up by the lender to stop the foreclosure on a debtor’s home.<br />
Benefits of Declaring Bankruptcy<br /> - Clears all outstanding debts<br /> - Fresh start on a new financial platform<br /> - Stress relief from creditors no longer contacting you<br /> <br />Disadvantage of Declaring Bankruptcy<br /> <br /> - There is a stigma attached to filing bankruptcy, if others find out you have.<br /> - You may lose your assets. <br /> - Coping with major lifestyle changes can be difficult.<br /> - It may be harder to get credit again.<br />
Myths about Bankruptcy : <br /> - Everyone will find out I filed for bankruptcy<br /> - Bankruptcy will ruin my credit for 10 years<br /> - Filing for bankruptcy makes me a bad person<br /> - I will lose everything I have<br /> - I will never be able to buy a house again<br /> - I can choose to include only what I want in my bankruptcy filing<br /> - My spouse and I must file bankruptcy together<br /> - I am only allowed to file for bankruptcy once<br /> - I will never be able to get credit again<br /> <br />
Seek Professional Counsel <br /> - Allmand & Lee can provide counsel on the best time and form of bankruptcy to file<br /> <br /> - Allmand & Lee have over 20 years of experience filing bankruptcy cases<br /> <br /> - Allmand & Lee file thousands of bankruptcy cases each year<br /> <br /> - Contact Allmand & Lee at 224-884-4176 for more information<br />
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