An Offer in Compromise (OIC) is one options that anyone struggling with tax debt may take into consideration. This option is basically an agreement between the Internal Revenue Service (IRS) and a taxpayer where the taxpayer offers the IRS a payment lower than the tax obligation. The IRS accepts the payment and forgives the remaining tax balance.
Getting hit with a tax levy may seem like something that could never happen to you. It seems unfair that the government can simply take your money directly from your paycheck, yet they do. The Internal Revenue Service (IRS) will employ this means of tax collection for overdue payments.
It may begin as a hobby. Perhaps a woodworking experiment or brewing gift set began as a fun pastime. But this new pastime has taken off. Perhaps you are spending more and more time on this hobby and you begin to wonder, could this be considered a business?
For nearly every legal action, there is a point after which the case cannot be pursued. This is called the statute of limitations. Under Minnesota law, the shortest period of time in which a civil case can be brought is two years. The shortest period for criminal cases is three years. There is no statute of limitations in cases of murder.
Do you remember the FAST Act? Despite the implications of the acronym on that 2015 law, there are elements of it that have the potential for putting the brakes on some individual's travel plans. As we noted in a pair of posts a year ago at this time, while the U.S. State Department is responsible for issuing passports to U.S. citizens, the IRS has authority to leverage this identification form to collect delinquent taxes.
You are not your brother's keeper. Nor are you your sister's keeper. But if you have a spouse and you file a joint income tax return, the IRS will hold you jointly responsible for any obligations that may exist.
We don't know too many individuals who would say that business taxes in Minnesota are too low. The state has a well-documented reputation as being one of the 10 worst in the country when it comes to the business tax climate. Wisconsin doesn't rank as poorly as Minnesota, but according to TaxFoundation.org, it's in the bottom half.
Have you heard of statutes of limitations? These are laws that elected officials pass that put a time limit on when government can take enforcement or prosecutorial action. There is no statute of limitations on murder. There are on lesser crimes in Minnesota and elsewhere. Even the IRS faces limits on how long it can go after those alleged to have liability for unpaid taxes.
When a Minnesotan who has not reached the age of majority violates the law it's not called a crime, at least not most of the time. Rather, it's called a delinquent act. Because the perpetrator is not an adult the penalties for wrongdoing tend to be less severe.
Tax issues can be a tangled mess to sort out. It's not unusual for a taxpayer in the Twin Cities area or the western part of Wisconsin to be thrown so much for a loop by a notice from the Internal Revenue Service that it leaves them frozen in their tracks. That's exactly the wrong reaction to have, however.