Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-17-2015, 01:21 PM
Junior Member
 
Join Date: Feb 2015
Posts: 2
Wage Garnishment/Payment Plan

Hello,

I am a client that did not file a return for tax year 2011 or 2012. They are now having their wages garnished. Do they need to file for these years prior to attempting to set up a payment plan?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 02-18-2015, 06:29 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,233
You Must File Back Taxes, Even If Late
YOU NEeD TO FILE back taxes to analyze any unfiled tax returns and how much tax debt you owe. If you do not file, the IRS may complete a "Substitute for Return," which is not optimal as it is one tax return for all years. No federal exemptions or expenses will be applied and therefore increase your total tax liability. If the tax is assessed and the IRS completes a substitute return for you, they will begin collecting. This means they can place a tax levy on wages or bank accounts, or a federal tax lien on your personal personal property. Penalties and Interest will grow significantly and increase the total tax amount you owe the IRS if you didn't file and have taxes owed.
You will receive a Wage Withholding Order from your employer. Unless you take action, you can expect the garnishment to start in 30 days As soon as you receive the Wage Withholding Order from your employer, file a Wage Garnishment Judgment Exemption with the county clerk's office from which the withholding order originated. Do so immediately, as it can take one-to-two months for a hearing to be set on your behalf.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 02-18-2015, 09:58 AM
Junior Member
 
Join Date: Feb 2015
Posts: 2
Wage Garnishment Started

For this particular client, the garnishment has started. Is filing for the back years is still an option? I have been trying to research on their website and it is not very helpful. He's hoping to make a payment arrangement instead of the garnishment. It appears that he needs to file for those years before they would even consider a payment arrangement. Thank you so much for your response.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #4 (permalink)  
Old 02-18-2015, 04:30 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,233
Quote:
Originally Posted by canderson76 View Post


#1;For this particular client, the garnishment has started. Is filing for the back years is still an option?


#2;I have been trying to research on their website and it is not very helpful. He's hoping to make a payment arrangement instead of the garnishment. It appears that he needs to file for those years before they would even consider a payment arrangement. Thank you so much for your response.
#1; Yes it is still an option


#2;coprrect; but Yes they do.

The IRS will not allow a resolution with out it.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
wage garnishment and tax return dawnjo Miscellaneous 0 02-11-2014 04:55 AM
Tax levy Wage Garnishment CHEFMEKA Miscellaneous 1 02-17-2013 01:56 PM
Wage Garnishment HomeyDuck Income 1 01-13-2012 01:15 AM
Can a Taxpayer receive a Tax Refund for 2010 if they are currently enrolled in a payment plan to pay off past federal tax liabilities? TaxGuru Miscellaneous 0 06-29-2011 11:58 AM
Tax Garnishment kdunn247 Miscellaneous 0 01-25-2010 12:13 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning