There are hundreds, if not thousands, of cases that you can find all over the internet and local news about people not paying their taxes. From local business owners, to politicians and even celebrities of all kinds – this is not something that should be new to us as American citizens. So what should you do if this happens to you? What should you do if a letter shows up in your mailbox one day? With over 20 years of tax debt relief experience, the team at Talon Tax has some insightful ideas and topics of discussion on this matter.
Marc Anthony Owes New York $2.5 Million in Back Taxes
Singer Marc Anthony has agreed to pay about $2.5 million in back taxes, interest, and penalties to the State of New York due to his failure to file returns for five years, the Manhattan District Attorney announced Wednesday.
Anthony has not been charged, but his manager, accountant, and his three companies all pleaded guilty to tax crimes in a plea deal reached with the Manhattan District Attorney’s office. Anthony must pay the $2.5 million by June 1.
A state Department of Taxation computer drew attention to Anthony when it kicked out his state return due to discrepancies, according to Peter Farrell, an assistant deputy commissioner of the department.
The New York born Anthony, who is married to singer and actress Jennifer Lopez, was not charge due to his reliance on his accountant to file his tax returns, Manhattan District Attorney Robert Morgenthau said. Read more here
Chris Tucker Owes Back Taxes to the IRS and State of California
Can He Settle Tax Debt for Pennies on the Dollar?
Chris Tucker, comedian and actor is apparently in trouble with the Internal Revenue Service. According to CNN, the IRS filed papers in LA that states Chris Tucker owes around $11,571,909.26 in Federal taxes from years 2001-02 as well as years 2004-06.
He owes $4,007,794.34 for 2001, $5,060,074.23 for 2002, $55,544.84 for 2004, $660,414.94 for year 2005 and $1,788,080.91 for year 2006. According to TMZ, the state of California also filed a lien against Christ Tucker for failing to pay $3,594,409 during the same time period for back state taxes.
So the question is “Chris where’s all the money you earned?” Did you hide it off-shore or blow it? Nobody knows except you Chris Tucker and his people around him. I’m sure the money’s gone so he’ll be setting up a payment plan with the IRS. Chris Tucker hasn’t acted since 2007 and his cash flow may be drying up. Read more here
It is when talking about taxes. An “injured partner” takes place when 2 people, who were or are wed, file their taxes independently and at some point in the previous one of them had a tax trouble. Instead, the money gets gotten hold of by the IRS to offset back taxes or charges due from the bad partner, ergo the injury.
There are some options, nevertheless, and they are part of the tax code. That said, the injured spouse needs to be proactive to pursue them.
Initially, you have to be qualified as a hurt spouse. To fulfill this qualification, you will certainly have to have been current will all your tax reporting. This includes any income tax filings, payments, reports, and withholding. Long story short, your own tax record needs to be squeaky clean prior to you go in and inform the IRS that you’ve been unfairly injured by a tax collection on your spouse’s financial obligations. This includes being complimentary and clear of any past-due federal debt from other problems perhaps long forgotten.
For those who stay in states that apply the legal property guideline of neighborhood home, things get a bit more complex. In these circumstances an analysis needs to be performed to determine exactly what exactly is your responsibility or not under a community home scenario, including debt. IRS Publication 555 – Community Property, goes into detail on this matter.
Guaranteed Installment Agreements
The IRS is needed to agree to an installment plan if your balance due is $10,000 or less and you satisfy all of the following criteria:
- For the previous five years you haven’t submitted late or paid late.
- All your tax returns are filed.
- Your month-to-month installment payments will settle your balance in 36 months or less.
- You’ve had no installment agreement in the previous five years.
- You agree to submit on time and pay on time for future tax years.
- The minimum monthly payment the IRS will certainly accept is the grand total amount of your account payable (including charges and interest) divided by thiry.
The main benefit of a guaranteed installment agreement is that the IRS will certainly not file a federal tax lien. Tax liens are reported to the credit bureaus and detrimentally impact your capability to obtain credit. The IRS will likewise not ask you to complete a monetary statement (Form 433-F) in an effort to analyze your current monetary situation. If you don’t satisfy the requirements for a guaranteed installment agreement, you must consider a streamlined installment agreement.
The IRS will authorize an installment plan if your account payable is $25,000 or less, and you accept pay off the balance in 60 months or less. The IRS will need complete payment within the remaining statute of constraints if your balance will certainly end within this five-year duration due to the ten-year statute of limitations on collections.
Reliable March 7, 2012, taxpayers can get a streamlined installment agreement if the balance owing to the IRS is $50,000 or less, and the taxpayer agrees to settle the balance in 72 months or less. This growth of the streamlined installment agreement requirements belongs to the IRS’s “Fresh Start Initiative.”.
Similar to guaranteed contracts, all your income tax return should be submitted, and you accept submit your tax returns on time and pay your taxes on time in the future.
The primary advantage of a streamlined installment agreement is that a federal tax lien is not needed. Furthermore, the IRS will not ask you to fill out a monetary statement (Form 433-F) in an effort to assess your existing monetary circumstance.
Many tax decrease business charge differently. Some charge an in advance retainer cost, some just have a flat contingency charge, and some determine fees based on a portion of cost savings. It is best to deal with those business that do not have a retainer fee and deal with a contingency basis. In either case, if you do not have at least 1k in funds to obtain you from your tax trouble then your only choice is to tackle the issue yourself. Some companies will certainly provide you suggestions or a complimentary tax assessment and that is always great to benefit from to get you on right track.
Overall, deciding to deal with a professional or take on the problem yourself can be complicated. Nevertheless, if you think about how severe your tax trouble is, the time it requires to negotiate yourself, and funds available for services, often times you can decide what you have to do. If you have to research, go to the IRS site, and other back taxes help websites.