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Question by Emanon: I married last year and owe fed taxes from 2005. I understand my stimulus will be put towards my back taxes?
- good for me to get them paid off, but will my spouse still get his part of the stimulus package. He does not owe back taxes, we filed jointly for 2007. Thanks!

Best answer:

Answer by v b
Only if he filed a form 8379 and doesn’t live in one of the 3 community property states that makes your tax debt his tax debt.

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Question by JASON T: Is it better to pay current taxes or back taxes first?
I am making payments for 08 and 09 Fed taxes. When I file in 2010, if I can pay in full should I do that or apply that money towards my back taxes.

Best answer:

Answer by acmeraven
Each year is a stand alone event; if you have payment schedules for prior years continue on with them and make your current return a done and complete deal.

What do you think? Answer below!

No investment property holds quite the opportunity of purchasing houses for back taxes. There are enough of them out there right now to make anyone rich. Here’s the least risky and most profitable way of purchasing houses for back taxes – outside the auction.

1. You’re going to skip the tax sale. Too many competitors. Everyone and his brother is at the tax sale these days – this means no good deals. Also, this property is uninspectable. You have to buy it and cross your fingers it’s not trashed. Obviously, buying at tax sale won’t work – you’ll need to try something else.

2. The best time to buy property is after tax sale – at the end of the redemption period. Mortgage companies will have bailed out mortgaged properties by now, so all that’s left is free and clear property. The owners that still haven’t redeemed are probably planning to let the property go to the government.

And this is exactly what you want to be looking for.

3. Obtain the tax-delinquent owners’ contact info. This information can usually be found fairly easily on the web. You can then contact them via email, letter, or phone. (Phone usually works best.)

4. Ask the owners if they’d mind signing their deed over to you. Remember, these owners don’t want the property, so offer around 0 for their time. If you don’t think this will work, just try it for yourself – you’ll be amazed how many owners just want the deed out of their name as soon as possible.

5. Sell the property before the end of the redemption period, or pay the taxes and keep it. If you’ve decided to keep the property, get the tax situation taken care of as soon as you can.

Or, take a few thousand (or more) in profit by selling immediately to another interested investor.

This is by far the best way of purchasing houses for back taxes for pennies on the dollar. Strike while the iron is hot – the foreclosure rate has produced a huge number of foreclosures for you to go after.

Municipal auctioneers provide services for towns and cities needing to liquidate excess property as well as collect taxes through auction services. Tax title auctions and tax possession auctions provide municipalities a means to collecting back taxes owed by auctioning off the property asset associated with the tax bill. People can learn about tax title auctions and tax possession auctions through several sources, including directly from the municipal collectors office, through local newspapers and online through different web sites.

Municipalities will often hire a third party firm to handle the details of tax title auctions and tax possession auctions. The third party firm provides municipal auctioneers to the municipality to help organize the auction through advertising the properties up for sale, the date, time and place of the auction and collecting of payment from successful bidders.

In some states auctions may be conducted live at town or city hall while other auctions may be conducted online depending on specific state law.

Municipal auctioneers work with the local municipality to determine the best type of lawful auction method to use for the property being sold. One type of auction most often used is called the English auction, (also known as the ascending bid auction), where bids are taken by the auctioneer until no more people desire to bid on the property. The person with the highest bid is the winner and receives the property upon settlement. English auctions are often performed live with people participating in a location but may include the use of computer accepted bids and proxy bids.

Computer accepted bids and proxy bids are administered on behalf of the person placing the bid to the auctioneer as it is received through the computer or over the phone.

Municipal auctioneers may establish minimum opening bids for certain properties as well as set reserve prices depending on the asset and relative state law. The minimum opening bid is the least amount the municipality is willing to accept for the property and is often the total amount of the past due taxes plus any penalties. Properties often sell for more than their past due tax amounts since this is only the fraction of the true value of the property.

Municipal auctioneers can also provide services for excess property and assets which the city, county, or state no longer uses and just sits in storage. These items can include automobiles, heavy equipment, tools and other items. These types of auctions provide people an affordable option of obtaining items at a fraction of their original costs and convert these idle assets to cash for the local government. For more information please Visit: www.strategicauctionalliance.com

Are you getting ready to pay the IRS for back taxes that are owed or has the IRS been chasing after you for money? Before you pay the IRS you must read the rest of this article for important information that the IRS will not tell you.

Did you know that the IRS only has 10 years to collect money from you and after 10 years they are forever barred from collecting from you? If you are like 99.99% of people you never knew this simple fact because the IRS collection agents will never tell you this information. If you send them a check after the ten years, the IRS will gladly take your money and you will be none the wiser.

So here are the facts. If you owe the IRS money then they are limited by law on how long that they can attempt to collect this money from you. This is known as the Statute of Limitations.

The most important item is when does the clock start ticking on this ten year period? According to the Internal Revenue Code, the ten years start when the tax liability is assessed by the IRS.

This can be either when the tax return is filed or when the IRS issues a notice of deficiency. To further complicate the matter if an extension was filed then this extension can affect when the ten year period starts.

An assessment is a simply a recording of the tax debt on the books of the IRS. When you file your tax return and if you owe money with your tax return but do not pay, then the IRS will automatically make a tax assessment against you.

In the alternative if you never file your tax return, then the IRS may prepare a return on your behalf based upon the limited information that they have on record. They will then make a tax assessment against you.

Finally, if your tax return is selected for an audit and the IRS determines that you owe more money, then they will make an assessment against you.

So with the Statute of Limitations it is very important to determine on what date the notice of assessment started, because this starts the clock running with the 10 years.

Furthermore you may have already extended the statute of limitations on the collection period without even knowing it.

If you had entered into an installment agreement with the IRS, then this installment agreement stops the clock from running. If you default on your installment agreement then the clock starts running again.

Dealing with the IRS can be very difficult and costly if you do not have the proper advice and guidance. If the IRS is trying to collect money from you, then before you pay them one dime see if the statute of limitations has expired otherwise you could be throwing your money down the toilet.

Article by Jonathan Donalston

If you haven’t filed a tax return in a while, you could be wondering what options you have. It is in your greatest interest to file those back tax returns as quickly as possible. You is perhaps surprised to study that submitting back taxes could be the easiest method to get out of your tax problems. You do nonetheless want to protect yourself and have a plan.Step One

Gather all of your info for annually you didn’t file a tax return. Research totally any lacking data to make sure the return you file is correct. Do you have your W-2′s, 1099′s, and mortgage interest statements? Many taxpayers with unfiled back tax returns have misplaced their tax records. Chances are you’ll contact the IRS to request a wage and earnings transcript. This transcript will give you the wage and income info you are missing. Should you have been self employed you may must work with an accountant to assist determine estimates for you.Step Two

Filing your overdue IRS returns. The query needs to be asked whether to file your IRS back taxes your self or hire a professional. If you determine to do it yourself make sure you use reliable tax software. You must also plan on spending two to a few hours on every tax year. However, hiring a tax professional could not only assist you put together for submitting back taxes but also cope with the IRS for you.Step Three

Protect your refunds. You need to know there are strict cut-off dates for statute of refunds, audits and collections. You must also know that if you happen to owe taxes for other years, the refunds may be taken to offset those other debts.Step Four

Take care of the tax debt that is owed. You need to have a plan for a way you’ll repay your tax debts. You will also want a plan to protect your self from IRS assessments, levys, liens and seizures. This may usually require an experienced skilled to help you resolve these issues. Your plan may very well be so simple as establishing a monthly fee plan or writing a test for the complete amount. No matter your situation, you need a plan, because ignoring the IRS can get you in hassle fast.Step 5

Plan ahead. For those who discovered your self owing in past years, you need to do some tax planning for the present year. You should regulate the withholding in your paycheck by completing a brand new W-4. For those who make estimated tax funds they need to be adjusted to fulfill your tax liability.Helpful Hints

1. Filing back taxes can’t be finished electronically. These returns must be mailed to the IRS service center. You may also select to ship them to a neighborhood IRS office.

2. Mail every back tax return in separate envelopes.

3. Mail the back tax returns by way of licensed mail so you receive proof of IRS receipt.

Getting back tax relief through an installment agreement is something to look into. If you owe back taxes this may be the only way for you to pay the IRS what you owe them. Remember, you have some options and you need to know which one is going to make your life the easiest. Some people will opt for an installment agreement, others will pay in full, and some will chase after an offer in compromise. It is important to know the inner workings of an installment agreement in case this is the option that will end up working best.

Back tax relief through an installment agreement is simple to understand. The IRS gives you the ability to make monthly payments since you do not have enough money to send a check for the lump sum. This is just one of the many ways that the IRS shows how they are willing to work with taxpayers as opposed to against them. While the IRS may be strict, they do not want to rip anybody off.

This can be seen by the way that they offer installment agreements with reasonable terms.

But why would I want to drag out the payment process? You probably don’t. This is why you should pay in full if you can. But depending on how much you owe, an installment agreement may be your only option. By breaking down your total liability into smaller payments, you can get back on the IRS’ good side soon enough.

If you have the money to pay your back taxes it is easy to solve your problem. But if you do not, an installment agreement is the way to go. This allows you to pay a small amount each month. Even though you will owe interest as well, working with the IRS in this manner is a good idea.

Question by Marie: How soon will the IRS go after a person’s personal assets for back taxes after they are deceased?
My uncle has passed away and he neglected to pay some 50,000 dollars in back taxes on his business. The children are left with his home that the IRS has levied a lien against. How soon does the IRS come in and take this property for back taxes after the death of the taxpayer? What is the best course of action for his children to take? Paying this loan off for his kids is way over what they can afford. Thank you for any information you can offer.

Best answer:

Answer by bostonianinmo
Since the IRS already has a lien on the property, the debt to the IRS will be cleared through probate. The executor of his estate is responsible for taking care of that.

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Question by Rosanna: When a house has back taxes, do I need to pay them immediately?
I am interested in buying a house that has about $ 3000 in back taxes. The house was foreclosed upon, and now the bank is selling it through a realtor. I was wondering whether all of the taxes would be due upon my purchasing the house, or whether I would have some time to pay them. Does anyone know? If it makes a difference, the house is in Indiana.

Best answer:

Answer by Snezzy
You will not be able to get a mortgage from the bank until the taxes are paid. Talk to the bank; they should know all the answers.

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Question by Melinda C: What is the money amount when the IRS takes back taxes out of your paycheck?
I have a friend who owes back taxes. The IRS was supposed to deduct her money owed from this years tax return. The IRS did not. They gave her tax refund and she spent it instead of giving it to the government. What is the amount when the IRS takes it out of her paycheck?

Best answer:

Answer by xtron8r
Garnishee of wages. The IRS takes a fixed percentage of wages from your employer. In your friend’s case, she received a refund when the garnishee amount exceeded the repayment amount. There should be no penalty for spending HER money.

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