Worried About Owing Taxes?
Death and taxes are the only two things guaranteed to American citizens. Interestingly, though the Internal Revenue Service hands out over eight billion pages in tax forms and tax instructions every year, people still find themselves having trouble. Fortunately, if you owe federal taxes payment plans can get you out of trouble and back on your feet.
One thing you absolutely want to avoid at all costs is having the IRS impose a tax levy upon you. What is an irs tax levy? Essentially just a way for the IRS to take money owed to them. The IRS has the power to place a levy upon your wages, bank accounts, social security payments, accounts receivable, insurance proceeds, real estate and even your house. A federal tax levy can be devastating to an individual.
Of the 50 states, 43 and many localities impose an income tax on individuals. In addition, there is the federal income tax that everyone pays. Taxes have been around since 1787, when the U.S. Constitution gave the federal government the power to impose and collect taxes. The constitution also said tax revenues must be given to the states, proportionate to their populations.
If you owe federal taxes payment plans with the IRS can be a great idea. Getting back taxes relief is not something that happens overnight, and if you ever have trouble deciphering tax documents or you feel you may have done something wrong, never try to do it yourself. Taxes to the government are taken far too seriously to make a mistake and shrug it off. Always talk to a tax professional.
So how do you file your taxes? In 1989, only 36 states enabled taxpayers to file taxes online, but a year later everyone in America could. You can always e file your taxes, but the smartest thing to do, according to experts, is to talk to a tax professional to ensure everything is correct and lawful. After all, you never want your house seized or to spend a few years in jail.