Posts by Ruth Ann Michnay, P.A.
The IRS “What Ifs” for Struggling Taxpayers – Tax Related (C-7)
The IRS “What Ifs” for Struggling Taxpayers – Tax Related (C-7) What if I need legal representation to help with my tax problem but can’t afford it?Low Income Taxpayer Clinics (LITCs) represent low income taxpayers before theInternal Revenue Service, assist taxpayers in audits, appeals and collection disputes, andcan help taxpayers respond to IRS notices and…
Read MoreThe IRS “What Ifs” for Struggling Taxpayers – Tax Related (C-6)
The IRS “What Ifs” for Struggling Taxpayers – Tax Related (C-6) What if I can’t resolve my tax problem with the IRS? Contact the Taxpayer Advocate Service (TAS). TAS is an independent organizationwithin the IRS whose employees assist taxpayers who are experiencing economic harm,who are seeking help in resolving tax problems that have not been…
Read MoreThe IRS “What Ifs” for Struggling Taxpayers – Tax Related (C-5)
The IRS “What Ifs” for Struggling Taxpayers – Tax Related (C-5) What if a levy on my wages is causing a hardship? Contact the IRS at the telephone number on the levy or correspondence immediately andexplain your financial situation. Service is available from 8 a.m. to 8 p.m. local time,Monday through Friday. If the levy…
Read MoreThe IRS “What Ifs” for Struggling Taxpayers – Tax Related (C-4)
The IRS “What Ifs” for Struggling Taxpayers – Tax Related (C-4) What if there is a federal tax lien on my home? If there is a federal tax lien on your home, you must satisfy the lien before you can sell orrefinance your home. There are a number of options to satisfy the tax lien.…
Read MoreThe IRS “What Ifs” for Struggling Taxpayers – Tax Related (C-3)
The IRS “What Ifs” for Struggling Taxpayers – Tax Related (C-3) What if I can’t pay my installment agreement? You have several options available if your ability to pay has changed and you are unableto make payments on your installment agreement or your offer in compromise agreementwith the IRS. Call the IRS immediately at 800-829-1040…
Read MoreThe IRS “What Ifs” for Struggling Taxpayers – Tax Related (C-2)
The IRS “What Ifs” for Struggling Taxpayers – Tax Related (C-2) What if I have requested an installment agreement? When you request an installment agreement (IA) through the Online PaymentArrangement (OPA) page , you will receive an immediate response notifying you whetheryour request is approved, or you don’t qualify through OPA. If you don’t qualify…
Read MoreThe IRS “What Ifs” for Struggling Taxpayers – Tax Related (C-1)
The IRS “What Ifs” for Struggling Taxpayers – Tax Related (C-1) What if I can’t pay my taxes? Don’t panic – you may qualify for a self-service, online payment plan (including aninstallment agreement) that allows you to pay off an outstanding balance over time. Onceyour online application is complete, you’ll receive immediate notification of whether yourpayment…
Read MoreThe IRS “What Ifs” for Struggling Taxpayers – Debt Related (B-4)
The IRS “What Ifs” for Struggling Taxpayers – Debt Related (B-4)What if I file for bankruptcy protection?Debts discharged through bankruptcy are not considered taxable income. If you are anindividual debtor who files for bankruptcy under chapter 7 or 11 of the Bankruptcy Code,a separate “estate” is created consisting of property that belonged to you before…
Read MoreThe IRS “What Ifs” for Struggling Taxpayers – Debt Related (B-3)
The IRS “What Ifs” for Struggling Taxpayers – Debt Related (B-3)What if I am insolvent? A taxpayer is insolvent when his or her total liabilities exceed his or her total assets. Theforgiven debt may be excluded as income under the “insolvency” exclusion.Normally, a taxpayer is not required to include forgiven debts in income to the extent…
Read MoreThe IRS “What Ifs” for Struggling Taxpayers – Debt Related (B-2)
The IRS “What Ifs” for Struggling Taxpayers – Debt Related (B-2)What if my debt is forgiven?The tax impact of debt forgiveness or cancellation depends on your individual factsand circumstances. Generally, if you borrow money from a commercial lender andthe lender later cancels or forgives the debt, you may have to include the cancelledamount in income…
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