Archive for the ‘Tax attorney’ Category
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Tax Reduction Tips, Settle IRS Debt Or Reduce Income Tax Penalty

Tips for Tax Reduction: You’re not always stuck paying the full amount owed on your Tax Debt. With Tax Reduction, you can Settle IRS-Debt for less and even reduce Income Tax Penalty amounts.Settle IRS Debt for Tax ReductionThe best method for Tax Reduction is to Settle your IRS-Debt with an “Offer in Compromise”. While this is certainly the most difficult method for Tax Reduction, you could save a large percentage of the amount owed to the IRS.The other Tax Reduction method we’ll discuss teaches you how to reduce your Income Tax Penalty, but your debt amount will remain the same. When you Settle IRS-Debt, you could actually owe less than you initially owed before penalties and interest were assessed.Do you qualify to settle IRS Debt? There’s a general rule of thumb you can use to determine if you qualify to reduce tax debt with an Offer in Compromise. If you …

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Tax Debt Relief Acts of 2001 and 2007

Every year, taxpayers are required to file their tax returns with the IRS. However, the economy has suffered greatly in the recent years and so many taxpayers were not able to pay for their obligations on time. If you have no idea about tax debt relief, you should read this article.Tax relief happens when the government exempts any form of tax. Perhaps you’ve heard about the Mortgage Debt Relief Act of 2007 and the Economic Growth and Tax Relief Reconciliation Act of 2001. Until today, people are still debating as to the specifications and terms of tax relief but this is primarily due to the complex tax laws. With the right info in your hands, you can easily handle this situation.According to the Act passed in 2007, you can be exempted from paying for the tax which resulted from a debt amount that was canceled or forgiven. If you qualified …

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IRS Form 1099-A, 1099-C and the Cancellation of Debt in Foreclosure

Okay, so misinformation and confusion about the tax implications of foreclosure arising from the cancellation of debt seems to be piling up. In particular, folks seem most confused by the receipt of Form 1099-A from lenders who have taken property back in foreclosure.First, remember the basic principle: Cancellation of debt MAY result in taxable ordinary income.Second, because a foreclosure is viewed as a “sale of property,” if you let real estate go in foreclosure and it results in a cancellation of debt, then that foreclosure may be a taxable event.There are three exceptions:1. First, if the property lost in foreclosure is a principal residence-literally the home in which you live-then the cancellation of the debt (“COD”) generally won’t be taxable. This is a result of the Mortgage Forgiveness Debt Relief Act of 2007.2. Second, if your are “insolvent” at the time that the debt is cancelled (not at the time …

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