Tax Matters - The Top Tax Defenders Blog

It’s October. Do you know what that means? If you filed for a tax extension earlier this year, it’s time to file your taxes. And If you haven't spent the last few months doing so, you need to get all your supporting documentation together, get your taxes calculated, and file the whole thing by the middle of this month to avoid penalties and additional interest.

Not filing taxes for several years could have serious repercussions. Not only can the IRS stop you from applying for a passport or a mortgage, but they can also create a Substitute for Return against you, charge you for failure to pay, or charge you for failure to file.

Receiving mail from the Internal Revenue Service is enough to make anyone’s knees quiver. It almost always means you owe more money to Uncle Sam for one reason or another. In the case of a Notice of Deficiency, formally known as CP3219A, it means that the information you provided with a tax return does not match up with the information a third party sent, like a bank for an employer.

If you somehow missed all the clues that Tax Day was April 15 (every year), or all the specials from tax preparers running up to this year’s Tax Day, you may be wondering what to do now.

The IRS gives taxpayers until April 15 to file and pay their federal income taxes. People who cannot make this deadline to file can request an extension until October 15 by filling out and submitting IRS Form 4868. This extension will grant taxpayers extra time to file their returns. They must pay their estimated amount of taxes by the April 15 deadline, however.

The IRS utilizes a number of collection activities to recoup debts that taxpayers owe to it. Among them, tax levies are many times the most difficult with which to cope.

Creditors generally have a variety of options to collect on debts owed to them. Among them, wage garnishment is one that is used the most often to get money from debtors.

As an employer, you are required to follow precise state and federal laws when paying your employees. Along with paying them what they have earned, you also must withhold amounts from their paychecks whenever your employees are garnished. You can comply with a garnishment order fully by understanding what it is and under what circumstances the state or federal government requires you to withhold money from your employees' earnings. 

The IRS uses a variety of collection activities to collect what taxpayers owe to the government. Among these tactics, a federal tax lien can be among the most difficult with which to cope.