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