Can the IRS take money out of my bank account?
I'm a webcam model and this is my 2nd year doing this.. I owe the IRS $600. I sent $100 and was suppose to be getting put on a 'hardship' progarm that extends my time to be have it paid to October.. but I still haven't heard from them.. Eveytime you call, you sit on the phone for hours. I'm not too sure what to do. I'm freaking out because I currently don't have $600 to just up and give them. I've never given them any of my bank account information. But is there anyway they can get into my bank? I have a jointed account with my husband who is currently in basic training for the military. Also, I heard some of the other girls talking about quartely taxes? What are these?.. I've easily made over 10,000$ already this year.. do I need to send in some money to the IRS NOW? I'm SO confused!
Is there a statute of limitations for a IRS Tax Lien?
The IRS has ten (10) years from the date of a tax assessment to collect a debt from the taxpayer. The date the collection statute expires is called the Collection Statute Expiration Date or CSED.When this date passes, the IRS is barred from attempting to collect your tax debt unless you waive the enforcement of the statute.When Does the Collection Statute Start to Run?The statute starts on the day an IRS assessment is made.Generally, the dates of assessment are as follows:Filed tax returns – The date you mailed the tax return plus six weeks.Audit Adjustments (agreed) – The date you signed the auditor’s report plus three weeks.Audit Adjustments (unagreed) – The date the appeals process and the tax court process (if any) is completed and the tax court judge has issued his or her ruling.What Will Cause the Collection Statute to be Extended?The Collection Statute can be extended (tolled) by one or more of the following acts or situations:The filing of a bankruptcy petition – The statute is extended for duration of the bankruptcy proceedings.The filing of an Offer in Compromise – The statute is extended for duration of the Offer or one year, whichever is greater.The filing of requests for relief – The statute is extended when a taxpayer files for a Collection Due Process hearing, Innocent Spouse Relief and any other form of relief that requires the IRS to suspend collection enforcement while it reviews the validity of the underlying assessment.The signing of a waiver extending the statute – The statute is extended to date indicated in signed waiver. Never sign a statute extension without first consulting your tax advisor.The taxpayer is out of IRS jurisdiction – The statute is extended for duration taxpayer was out of IRS jurisdiction.He's The Tax Man is a tax attorney and certified public accountant helping taxpayers resolve their IRS and state tax problems.
Please help, we have serios IRS problems.?
Ok, I will not bother to go into the how this happened, but the IRS is now garnishing my wife's wages to the point to where we will not be able to pay the rent on our house. Whats worse is that she is an independent contractor as an insurance agent and they have it to where they are taking almost 75 percent of what she makes. They will not budge on this and now we really are hurting financially, which we were anyways because the economy has really hurt her business. And yes, I do work a regular 40 hour job and make decent money. They have as yet garnish my wages, but considering we live in California, and have 3 children, well lets just say it takes 2 incomes to make it here. I would love to here from anyone who has some good advice as to what to do. Is it worth going to one of the online companies that offer to stop wage garnishments or is that just a scam? PLEASE HELP! And please no comments like "just pay your taxes. Also, we owe more than 25,000.
Does the IRS monitor your savings and checking accounts?
The IRS does not have access to monitor bank accounts, nor do they know where everyone has an account to monitor them.Banks are required to report certain transactions to the IRS, such as interest earned on an account. If the bank does not report something, the IRS won't know you even have an account at any particular bank unless you use it for paying your taxes or getting a direct deposit for a refund. Even then, they aren't keeping a database of anyone's account numbers to track bank accounts.The IRS can also issue a summons for bank records if you are being audited (if they know where you have accounts), but you always receive a copy a of the summons when it is issued and you have a 25-day quash period to stop the bank from issuing the records of you have a legal reason why they shouldn't receive the records. The records are for a specific period though and they aren't sent constantly to monitor an account. For example, if you are being audited for the 2015 tax year, they can only request bank records for 2015, or one month before and after 2015 (for timing differences). If they don't know where you have an account, they have to guess, or send out summons to multiple banks to try to find an account you may have, which is costly and time-consuming.
How does the IRS find out if a person does not pay taxes? Does your bank share your account information with the IRS?
Stephanie is correct. Any payer that pays you (regardless of the method) more than a certain sum (it was $600/annum at least until a few years ago. It may well have changed) is required by law to file a 1099. A few years ago, I was subcontracting work to a half dozen people and had to send them all 1099s. That was kind of fun, actually, because for those two years I was an employer. ^_^ Felt good, actually.More specifically, Paypal used to send anyone who received more than $600/year in payment a tax form as well, but they have changed their policies recently and now only send tax forms to people who receive $20K or more/year from their service. I imagine Stripe and other payment systems have similar policies.It is absolutely not worth the trouble it will cause to try and bilk the IRS. They can garnish wages, put liens on your property. The legal fees alone are more than you'd pay in taxes.Personally - and I know this is an unpopular opinion - I am perfectly happy to pay my taxes every year. They pay for things I want, like roads, education, medical research. Yes, they pay for things I don't want, like war and free healthcare for politicians, but not for regular people, but I'd rather pay more forward in hopes that we do a slightly better job each year than we did the one before, than live in some Randian dystopia.
IRS levy? What does it mean for my future?
An IRS Notice of Levy is not the same as a Notice of Federal Tax Lien. If IRS has served a Notice of Levy on your bank account or your wages what happens is a private matter. If IRS files a Notice of Federal Tax Lien that is a public document roughly analogous to having a court judgment filed against you. It will torpedo your credit score and stay on your credit report for 10 years. A suggestion for a question you did not ask: Make peace. You probably have sat on your hands too long and now IRS is using its big guns. Call them at the phone number on the levy and ask to be set up on an installment agreement unless you can satisfy the balance due in short order.
Does the IRS know you bought a house with cash? (No mortgage)?
Not immediately at the time. The IRS is not the Secret Police. Depending on how you got the cash. My son’s friend just got a $140,000 gift from her parents as the down payment on a house. If she takes a suitcase of cash to the closing, the IRS will probably know soon after the transaction. Cash transactions of $10,000 or more are required to be reported to the IRS on Form 8300 https://www.irs.gov/pub/irs-pdf/...If she writes a check from a Bank, and if she is not on the IRS radar, the IRS is not going to know.If you are audited (the odds of which for most taxpayers are pretty slim right now) the IRS will perform a “cost of living” analysis. I’m not sure what their official jargon is for this technique. They look at 14 months of bank statements. You better have a good explanation for how you got the cash. Drug dealing is not a good explanation. If you have a good explanation you have no problem.