Taxpayers in Georgia and around the country are less likely to receive an audit notice in 2017 than they were in previous years due to belt-tightening at the Internal Revenue Service. Lawmakers rely on the money collected by the IRS to fund federal agencies and pay for entitlement programs. However, congress has slashed the agency's funds in recent years. This has led to budget cuts and layoffs in virtually all IRS departments, and fewer auditors mean fewer audits.
Some Georgia residents are financially unable to pay their IRS bills because of not having anything left to pay towards their bills after their other expenses. If you owe back taxes and are unable to make payments to the IRS because of your limited income, you may qualify for a "currently not collectible" status with the IRS.
Tax forms have all been mailed, and the deadline for filing starts to loom for many people. As you prepare to file your 2016 taxes, your goal is to limit your obligations to the government and maximize a refund if you are getting one. Every year, millions of American miss tax deductions that should reduce the amount they owe the government without realizing it.
Most Georgia residents understand that the best way to avoid the wrath of the IRS is to file a tax return and pay taxes on time. However, those who don't follow those rules aren't necessarily going to be sent to jail. Typically, the IRS would rather work out a solution without spending a lot of time and money. Criminal investigations are generally the final step after other methods of resolving a case are not effective.
Georgia residents who have taken the earned income tax credit on their federal tax returns will have their refunds held until Feb. 15. The same is true of those who claim the additional child tax credit. According to the IRS, it is taking this step to provide more time to spot fraudulent returns. Refunds aren't expected to be available to taxpayers claiming these credits until Feb. 27.
If you owe the IRS money and you aren't able to keep up or schedule a payment plan, they may start the process of garnishing your wages or other property through an IRS levy. The IRS can seize your legal property to offset the money you owe them for your taxes. If you know the IRS plans to levy your property, you only have a short amount of time to reverse the process.
Georgia residents who claim the Earned Income Tax Credit or the Additional Child Tax Credit will not be able to receive their refund until at least Feb. 15. This change was made in an effort to combat tax refund fraud as well as identity theft. Through June 2016, 26 million tax filers had claimed the EITC while there were 20 million tax returns claiming the ACTC in 2014.
As you work hard just to pay the bills and put food on the table, it's tough to keep up with Uncle Sam at the same time, and you may fall behind on taxes if you aren't prepared for the expense when it comes time to file. IRS debt isn't something that goes away if you ignore it, and eventually your wages may even be garnished to help pay for what you owe the government.
As Georgia taxpayers may know, problems may sometimes occur when a tax return is filed. In some cases, the Internal Revenue Service may not have any record of that filing. Knowing how to prove that a return was filed may be important to avoid paying the penalties.
Whenever a consumer buys a product or brings in revenue, they are required to pay taxes set by the federal and state government. As non-profit organizations don't make a profit, they can gain a tax exempt status that allows them to avoid paying certain taxes on certain things. While some non-profits are eligible for tax exempt status, others are not, and it can be difficult to know the difference.