Click on our frequently asked questions (FAQs) below to get more information about tax resolution and accounting!
Unfortunately, the answer to this question is “yes”. They can and often do! If you owe taxes, the IRS can levy your bank account, take your paycheck, your social security, and other types of income. To learn more about what the IRS can take, click here.
The IRS uses mail as their main form of communication if you owe taxes. Sometimes it can seem like you receive a letter every day! This can be intimidating and confusing. The most important thing to remember is if there’s a deadline to respond, make sure you meet that deadline! If you don’t, collection action could be taken against you. If you’re not comfortable with your ability to respond appropriately, make sure to seek help from a professional. To learn more about receiving IRS letters and what to do, click here.
A Revenue Officer is an IRS civil enforcement employee specifically assigned to YOUR case to pursue collection action against you. If you have a Revenue Officer, you can expect a much more aggressive pursuit in collecting your back tax debt. If you have a Revenue Officer, consider hiring help to make sure your rights are protected against the IRS.
There are several options available for people who owe taxes to the IRS or State to settle their tax debts. However, time is not your friend. The longer you wait, the fewer options you have. Click here to learn more.
While claiming children is most common, you can also claim relatives who qualify! There are restrictions, however. A few of these include your relative making less than $4,150/year, you must be providing at least half of their financial income, and no one else can claim them as a dependent. To see the full list of restrictions, check out our blog on claiming dependents.
The good news is, the IRS does occasionally remove penalties and interest for people who qualify. Although the process can be complex, it can lead to big savings for those who are approved! Watch our educational video about Penalty Abatements here!
The short answer is, “yes”. Not filing your tax returns is criminal and can lead to jail time if the government decides to pursue that type of action. That’s why even if you can’t pay what you owe in taxes, we still suggest you file your returns timely each year. If your returns are legally and correctly filed and you just can’t pay, there are more options for resolutions that don’t include jail time. Not all resolutions are created equal, however, and it’s often hard to prove you qualify for relief. If you’re struggling to file your returns or to pay what you owe, let us know. We can help!
The amount a cannabis dispensary pays in taxes varies from state to state. For example, businesses pay a 4% special privilege tax in Arkansas, while taxes in Illinois vary with the product’s THC content. We encourage you to learn about cannabis business taxes in your state with Polston Tax. We have a video for this too. Check it here.
The federal government establishes tax brackets that determine the percentage of your income you will pay. As an individual, a 10% tax rate applies to the first $10,275 of your income, while income over $539,901 is subject to a 37% tax.
Claiming exemption is a request for the IRS to omit taxes on a bonus check. You can request tax exemption when reporting a bonus on your tax return. The IRS will either approve or deny bonus check tax exemption. There are various requirements for exemption, so check with the IRS to determine if your bonus check is eligible.
The appearance of a tax levy on your paycheck means that you owe money to the IRS, the Department of Education, a child support recipient or another creditor from whom you borrowed money. These entities are eligible to pull money from your bank account as repayment.
The percentage of your income that goes toward taxes increases incrementally according to a tax bracket system.
During an IRS business audit, the IRS will send a letter notifying you of the audit. They may request an in-person interview. You will also receive a request to provide information such as receipts, bills, loan information and employment documents. Most tax audits take three to six months.
Garnishment is a court order from the government for your employer, bank or credit union to withhold funds and use them toward owed taxes. Up to 25% of your disposable income is eligible for garnishment.
You can repay taxes from a previous year in bulk or come to an installment agreement with the IRS.
The initial consultation is quick and easy. We’ll connect with you at your local Polston Tax branch or over the phone to discuss your tax issues. The scheduling appointment will take between 10 – 15 minutes to gather all the needed information.
We schedule your initial consultation for 60 minutes so we have time to review everything and answer any questions you have. We want to ensure you leave the consultation feeling informed and educated about your options and next steps.
Calls to the IRS are higher than ever since the COVID-19 pandemic. Customer service representatives do their best to keep up with paperwork and the influx of calls, but the workload has piled up and continues to grow.
The IRS issues audits to ensure an individual or organization accurately reports their financial information. Common reasons for audits include:
You can negotiate by submitting an offer in compromise wherein you could receive approval to pay less than you owe. Otherwise, you can request to repay your tax balance over time through an installment agreement. Similarly, you can request Currently Not Collectible status when experiencing financial hardship that limits your ability to pay taxes.
The IRS offers unpaid tax forgiveness programs that allow taxpayers to reduce, spread out, defer or forgo payments. These programs intend to make repayment easier for those who owe back taxes or alleviate the burden of penalties and interest.
The IRS Fresh Start program is an initiative for individuals and businesses struggling to repay unpaid taxes. The program includes penalty relief for some unemployed individuals, installment agreements for small businesses, lien withdrawal options for taxpayers, expanded Offer in Compromise programs and other relief options.
Working with Polston Tax can save you thousands of dollars in tax payments and fees. We help individuals and businesses implement the optimal tax repayment solution for their situation.
Polston Tax helps clients nationwide! You can view our physical locations here to see the Polston Tax branch nearest to you.
Initial Consultations are Free!
The initial consultation is quick and easy. We’ll connect with you at your local Polston Tax branch or over the phone to discuss your tax issues. Plan for about an hour to make sure we understand your full tax issue, and can help determine a plan to get you out of it.
The more information you bring to the consultation, the better we can understand and plan to resolve your situation. Information such as tax returns, income statements, lists of assets and amounts owed help us help you.
We value your privacy and ensure confidentiality during any consultation.