There are many myths about taxes and tax resolution circulating around truck stops and the Internet. To clear up some of the most common misconceptions, we spoke to Jessica Wood, a Tax Resolution Specialist at ATBS. Jessica speaks to the IRS daily and has helped countless drivers get a handle on their tax issues.
Read below to learn the difference between tax resolution fact and fiction from Jessica Wood.
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The IRS can’t catch me if they can’t find me! |
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Just because you haven’t been home to read those pesky IRS letters doesn’t mean you’re in the clear with your back tax issue. The IRS will find a way to collect the taxes you owe whether you ignore them or not. Instead of waiting for a knock at the door, be proactive and start the resolution process as soon as possible. |
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I have to pay my settlement in full when my Offer in Compromise is accepted. |
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An Offer in Compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability, or doing so creates a financial hardship. If you proceed with an Offer in Compromise, and your negotiation is accepted, you do not have to pay the accepted offer amount in full. You have two different payment options to consider when paying the accepted offer amount. My favorite option allows you to pay the offer amount over 24 months— interest free! |
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I have to owe at least $10,000 to consider tax resolution. |
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Whether you owe one thousand dollars or one million dollars, you need to consider all resolutions options to resolve your debt. Based on the total amount you owe, some resolution options are better than others. But just remember, there is always a way to get you back in good standing with the IRS. |
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If I get married, my new spouse will be held liable for my IRS debt. |
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If you get married and have an IRS tax debt, your spouse will not be held liable for the previous tax you owe just because of the marriage. Unless you file your status as married joint on a tax return, there should be no issues of a joint liability. As newlyweds, remember this for the future of filing your tax returns and make sure to consider both filing statuses of “married joint” and “married separate.” |
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The IRS showed up at my house, so now I’m going to jail! |
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If your account has passed the point of collections, the IRS can assign an agent (also known as a Revenue Officer) to your account. The goal of working with a Revenue Officer is to ensure resolution takes place. Deadlines will be given to have all taxes filed (if applicable) and a request will be made for all financial information. Based on your ability to pay, the Revenue Officer will suggest a source of resolution. As long as your keep in communication with your Revenue Officer and provide information in a timely manner, there should be no reason for collection activity, let alone jail time. |
If you owe back taxes or if you've been threatened with an IRS levy, lien, seizure or the denial or termination of an installment agreement, the most important step is to act now. Waiting to settle a debt with the IRS will make the situation worse. If you need help settling back taxes, call Jessica Wood at ATBS (866.920.2827) or go to ATBSshow.com for more information on tax resolution services.