How To Claim Back A Potential 5000 In Tax Refunds From HMRC

As the new tax year comes to an end within the next few
days, Millions of people across the country are receiving �notification of
coding�. These letters contain details of what tax code you are to be placed on
for the 2011/2012 tax year.




Historically, millions of tax errors occur during this
period and could have easily been avoided by checking to ensure you are on the
correct tax code. A tax code like 747L is issued by the tax office to ensure
that your employers transfer all the benefits of your personal allowance.




Although the above might seem irrelevant but as mentioned
earlier, overlooking something seemingly incongruent as the tax code could cost
you in the long term. An estimated 1 in 3 people are due tax refunds and aren�t
aware of it. There are several ways of finding out if you are due a tax refund.




First you would need to get hold of the P60�s from the
years you think you may have overpaid
tax (within the last 6 years). An online
tax refund calculator would help you ascertain if you could be due a refund
and how much. For your convenience, I have attached this link: www.taxrefundme.com




Once you confirm your gross estimate for the last 6 years,
people tend to apply online through a registered tax agent. They have been
known to help a number of people claim refunds according to their testimonials
on their website. It shows you how much tax back people in the past have
received through using them; the record tax
refund amount known is �5000! I also think the chat service they have is
pretty cool although I haven�t used it myself, it would be a useful tool to
clarify any questions you may have.




As of today, all but one of the registered tax agents
researched have a minimum tax refund
requirement. What that basically means is that they would need your refund
amount to be over say �100, otherwise, the contract you sign with them allows
them take all your money in fees. That seemed a little tight to me because, none
of the tax agents give you a guarantee of what you would receive from the tax
office before your application. Looking at some of the registered tax agent, I
can�t find any without a minimum tax refund amount requirement except us. They
appear to abide by the Association of Tax Agents membership requirement that
says their member agents all use a separate bank account to pay business bills
to the bank account used to receive tax refunds. This does not give
justification for anyone to part with your refund because it�s below a certain
amount!

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A Guide To Help You Understand Tax Debt

Tax debt in simple words is an accumulated amount of money that is charged over the years towards your earnings. Tax is generally calculated according to your income and has to be paid to the government. Managing tax becomes a little difficult for some people, this is the reason that the employers roughly calculate the tax and routinely withhold the amount from their monthly or weekly earnings. This money is then transferred to some tax repaying agencies that manage accounts and pay tax timely on your behalf.

In some cases people try to manage tax by themselves and pay the amount to the government. In such a situation the tax after payment need to be filled and if the amount is higher than the required tax, the government repays it through cheque. Any failure of tax in the revenue year results in tax debt. If the debt is higher than the agencies can seize your assets in order to settle the debt. Here are some tips that will help you to avoid debt.

1. The first and the most important thing that you need to do, to get out of debt is to determine the exact amount of debt you have. After determining the debt, think of the reasons that had caused you the debt, so that it can be avoided in the years to come.
2. Once you know the debt amount, try to calculate your income. Perfect calculation of your income will help you in getting out of the tax debt. While calculating the income you must include all the income sources, which includes capital gains. Once you are clear with your income, it will be easier to come out of tax debt.
3. You can also take advice of professionals, who can help you in finding a better tax relief option. They are the right people who know about the different avenues to get out of debt, which has occurred due to the nonpayment of tax.
4. You can also look for companies who spend a lot of money in advertisements, and are perfect to help you. Look for reputed companies through internet, who have experience in the field of tax debt relief. You can compare between companies offering the services by reading their reviews.

Once you select the right company who can help you to get relief from tax, disclose all the details about your earned income through the business to them. You should also provide them tax records of the previous years, so that they can understand where you personally stand in the past and in the future financial years. Once your tax issues are resolved you must pay off your tax debt in the same manner as you do with any credit card debt. You can also ask for some kind of rebate to the IRS. If you have a record of late or missed payment then there is a chance of penalty being charged on you on debt caused due to accumulation of tax.

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What Is Tax Levies

Under the United States Federal law, tax levies means an administrative action that is taken by the authorities of internal revenue services. The IRS basically recovers the tax liability form the debtors by seizing their property, without going to the court. Under the section 6331, IRS uses, this most feared version of recovering debt, only when the debt is serious and you are ignorant about it. According to the power granted to the internal revenue services, they can even levy your wage, bank accounts, and insurance proceedings if any, your property which includes your land or your house, and other social security depending on the amount of debt you have.

The rules in the constitution, forbids the IRS from seizing your property for tax levies without court notice. They basically send you a 30 day notice before, the levy of your property are effective. The notice is send to you either by hand delivery or through mail. The 30 days gap prior to the levy gives you the time to think of alternatives and clear off the debt. This process of intimation is known as the collection due process. You can fill out the mail send by the IRS and request a hearing date, where you can ask for some kind of relief. The hearing date are granted only once to the taxpayers, every financial year.

You must ensure that the hearing for tax levies is held before an officer who is neutral and impartial. An officer with no prior experience in the field will not be able to help you much. On the hearing you can demand for some relief like spouse relief, installment agreement or an offer in comprise. If you are unhappy with the decision made by the officer, then you can always reach out to the tax court or federal district court for further relief.

The internal revenue service (IRS) people can also demand the employers to garnish the wage of the tax debtor and send the amount directly to them. However, under section 6334 some perquisites are exempted from tax levies, which help the debtor in managing through daily living expenses. Once the garnishment starts then it is applicable in future also, until the debt is fully paid off. Federal law also prohibits the employer from firing the employee whose wage is garnished, however, if the employer fires the employee then he has to either pay fine or a year imprisonment as penalty.

You can get in touch with professional counselors; they will help you in understanding the notice, send to you for tax levies. They can also help you save time of research, and assist you in finding better alternatives of handling the problem. You can also go through the information about handling the situation as well as the rules of levies online. Website search through the library of IRS will help you in getting the details of rules and regulations laid by them. There are also many books available, which contains the federal regulations for levies and the ways of handling.

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How To Get Help With Back Taxes

Twenty million Americans owe more than 200 billion dollars
in back taxes, according to the Internal Revenue Service (IRS). What does this
say about us as a people? Are we inherently selfish and dishonest? Is cheating
on our taxes as American as apple pie?



Employees for one of the most feared federal agencies on earth are loath to use
terms like �tax cheats� or �criminals� when describing people who have gotten
behind on their taxes. After all, they know how complicated the current tax
code is. As a general rule, IRS employees are willing to work with people who
have fallen behind on their taxes. However, if you choose to ignore the IRS,
watch out. They can and will take actions to make sure you pay your tax debt.



Owing money to the IRS is serious business. The agency has almost plenary
powers over taxpaying citizens. They can deduct money from your bank account,
garnish your wages, or fine you for failing to make payments. That is why every
taxpayer who has failed to file a tax return or is in arrears should contact a
tax consultant as soon as possible.



Tax Professionals



Tax consultants can assess your situation and contact the IRS on your behalf.
As tax professionals, they will work with you to make sure you file all
delinquent tax returns and regain compliance with the IRS. As expert
negotiators, they can save you beaucoup bucks by reducing or eliminating fines
and interest fees. They may even be able to reduce your overall tax debt if you
qualify for an IRS settlement.



The Art of Compromise



The odds of an individual citizen negotiating a favorable tax deal with the IRS
are less than you might think. And the government knows it. The National
Taxpayer Advocate recently reported to Congress that when �EITC taxpayers are
represented in audits, they are nearly twice as likely to receive the EITC and
receive almost twice the amount of EITC as unrepresented taxpayers.� Tax
professionals have a proven track record of making sure taxpayers are
represented and of reducing total tax debts when the taxpayer qualifies. It
isn�t magic or financial alchemy. Tax accountants use tax laws to prepare
offers the IRS should accept. Unlike credit card debt, the IRS tends not to
take less money for a speedy settlement. But the IRS will take less than you
owe if you qualify. While negotiating is part of this process, the U.S. tax
code plays a much larger role in determining who qualifies and who doesn�t. If
you don�t have a tax professional to guide you, your odds of successfully
negotiating a tax settlement drop.



An experienced tax accountant will generally insist on installment agreements
for his client. These deals let you pay down your debt over time without the
threat of fines, penalties, or excessive interest charges hanging over your
head. A talented tax consultant may be able to further reduce your total tax
debt if you agree to pay ahead of schedule.



Forgive Interest and Penalties



Another standard technique in the tax relief playbook is to get the IRS to
excuse or forgive interest payments, fines, and penalties. This can be
accomplished if the taxpayer or his representative can clearly demonstrate that
he acted on bad advice from the IRS, or if the extra fees and penalties were
assessed improperly. While it doesn�t happen every day, experienced tax
accountants can get the IRS to excuse fines and interest payments for some
clients.



Non Collectible Status



Another technique utilized by experienced tax consultants is actually a
dilatory tactic. When a delinquent taxpayer is listed as �currently not
collectible,� the IRS will not try to collect any money from them. To be
considered for this status, a taxpayer or his representative must convince the
IRS that he simply cannot meet his tax burden. Once again, the debt will not be
forgiven, it will simply be delayed and all fines and penalties will be put on
hold. If the taxpayer remains in a non collectable status for ten years, the
statute of limitations kicks in and the IRS will write the debt off. On the
other hand, if the taxpayer regains better financial footing, the IRS will
resume collections activity to try and collect the debt.

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What To Do When You Need Help With Back Taxes That You Can't Pay

Forget about the FBI or the CIA. The IRS is easily the
most feared government agency in the U.S. Created in 1862 by Abraham Lincoln,
the Internal Revenue Service is responsible for collecting taxes and enforcing
the Internal Revenue Code. Few Americans are aware of the fact that income tax
was enacted to cover the cost of war expenses during the Civil War. As critics
are quick to point out, income taxes are not mentioned in the original
Constitution. After all, the Founding Fathers were fighting against excessive
and unreasonable taxation.



But whether we like it or not, the Sixteen Amendment to the U.S. Constitution
(1913) gave the government the legal right to collect personal income taxes. It
also made it a crime for any citizen to refuse to pay his taxes. According to
the IRS, about one percent, or 13 million taxpayers are audited each year.



An audit is authorized when the IRS determines that an individual taxpayer
erroneously claimed deductions or exemptions, or failed to report income. IRS
examiners will review your tax return and may ask you to provide documentation
to support your claims, which they go over with a fine-tooth comb. If a single
entry is out of place, they may order the taxpayer to pay more.



Whether the result of audit findings, forgetting to file tax returns, or not
being able to pay your taxes in full, IRS tax debt is something you must deal
with sooner rather than later. According to the IRS, over twenty million
American citizens owe back taxes. Some owe hundreds, others owe thousands. The
total estimated shortfall is over two hundred billion dollars. What should you
do if you are being dunned by the IRS?



First and most importantly, you should not panic. Yes, the IRS is scary, but
they don�t want to throw you in prison. What they want is their money. It is
true that if you fail to file your return or pay what you owe, they will come
after you to make sure you do, but their end goal is simply to collect the back
taxes owed to the government. Getting audited is not a criminal accusation. It
simply means that you may have made a mistake.



Serious tax questions can only be answered by a trained professional. If you
owe a substantial sum in back taxes, it may be a good idea to contact a tax
consultant or advisor. No matter how much you owe, a tax professional can
determine the best course for reducing your tax debt. Let us take a moment to
discuss the kind of tax advice you might receive from an enrolled agent,
attorney, or accountant.



Negotiate a Compromise



One in every seven taxpayers owes back taxes. With statistics like that, the
IRS can�t afford to make acceptions or spend too much time on any one taxpayer.
More often than not they will take what they are allowed by law according to
the law. If you happen to qualify according to IRS guidelines, a tax accountant
may recommend an offer in compromise. As they often say, a good deal is one
where both parties walk away unhappy. In this circumstance, tax accountants can
help a taxpayer gather all the information and documentation required to settle
your tax debt. It is important to understand that your tax professional acts as
your representative, not your negotiator. Arriving at an amount to offer in the
offer in compromise depends largely on what you owe, what the IRS can expect to
collect if they continue hounding you for payment, and how much money the IRS
thinks you�ll make in the next ten years.



Installment Agreements



Since few taxpayers that owe back taxes can afford to pay them all at once, the
IRS will often let you pay your tax debt in installments. When stretched over a
long enough period of time, tax accountants should be able to negotiate a deal
that lets you pay your debt with monthly installments you can afford. But be
careful. If you lapse on a payment, the IRS can and will levy your bank account
for the amount due. Just so you know, the first question they ask you when you
set up a payment plan is, �Where do you bank?� The reason is they want know
where to find your money if you miss a payment.



For more information on tax debt reduction, consult a reputable tax advisor or
consultant.

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Need Help Settling Overdue Taxes?

No one ever said being a grownup was easy. Sure, there are
some perks. But above all else, adults are expected to be responsible. They
have to go to work, raise their kids, and pay their taxes. That�s how the whole
human comedy keeps perpetuating itself. Of course, every now and then it hits a
snag.



America has earned a rather bad reputation for debt in recent years. The United
States is officially the world�s biggest debtor nation. It�s easy to blame the
government for this imbalance. After all, they played a part in creating the
record trade deficit. But when it comes to personal debt, Americans must accept
responsibility.



Most shoppers know that credit card debt is out of control. The average family
is saddled with around ten thousand dollars of credit card debt. But did you
know that Americans also owe more in back taxes than any other nationality?
According to the latest figures, there are over twenty million delinquent
taxpayers in the U.S. They owe in excess of two hundred billion dollars in back
taxes. The agency that is responsible for collecting these debts is the
Internal Revenue Service (IRS).



No one likes getting a call or a letter from the IRS. They are arguably the
most feared government agency in America. On average, they audit around one percent
of taxpayers each year, and almost a third of those audited are among the
poorest taxpayers, people who claim the Earned Income Tax Credit. An audit is
triggered when automated IRS review processes identify tax returns that meet
certain specified criteria. Being audited means the IRS thinks you are cheating
or making errors. Either way, they want the behavior to stop and they think you
owe more money than you paid. This is not, however, a criminal offense.
Millions of Americans make mistakes on their tax returns each year, many due to
the complexity of the current tax code.



What to do about tax debt?



When a taxpayer is audited, it means he claimed a deduction or exemption the
IRS disagrees with, or that he failed to report income on a tax return. Many
audits leads to a tax bill that gets sent with the audit findings. But no
matter how you wound up with tax debt, the question is, what now? If the audit
findings or IRS tax bill require you to pay more than you can afford to pay in
one payment, you now effectively have a tax debt. Having an outstanding tax
debt is not the end of the world; it�s not even uncommon. It is, however, a
matter that should be addressed as soon as possible.



Like all debts, tax debts cannot be simply wished away. In fact, they get more
expensive if you ignore them. Fines, penalties, and interest fees can really
add up. A tax professional can help you negotiate a manageable agreement with
the IRS.



Installment Plans



The first thing a tax consultant will do is examine your tax situation, your
finances, and your IRS debt. Once they know what you owe and assuming you have
filed all tax returns and are in current compliance with the IRS, tax
accountants can contact the IRS on your behalf and attempt to negotiate a
payment plan you can afford. But the IRS is not like most creditors. They tend
to dictate what you can afford to you, as opposed to negotiating with you to
determine an amount you think you can afford. Because so many Americans owe
back taxes, IRS agents will work with you on a payment plan, but they are going
to want you to pay what you owe in a reasonable period of time, usually no more
than 36 or 48 months.



Partial Payment



If the taxpayer or his representative can prove that he cannot afford to pay
his tax debt in full, even over time, the IRS payment plan may include a
partial payment agreement. This means that the taxpayer will pay what the IRS
agrees he can afford, which may be less than the amount necessary to pay the
debt in full before the statute of limitations kicks in and the IRS ceases
attempts to collect the debt. Typically, tax relief is only available to
taxpayers who cannot afford installments or if the IRS made significant
mistakes along the way.

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Keep Copies Of Past Income Taxes - And Save Thousands!

Did you recognize that obtaining copies of past income taxes will prevent up to twenty five% on things like mortgages, tiny business loans, and credit cards? It's true! Rates are set by these firms based off a difficult algorithm which appearance at a selection of factors, including past income and previous investments. And what's one among the simplest ways in which to prove past income and past investments? Why, those old tax returns!

It's true! But that's not the sole method those old returns will facilitate your out. Here are 3 different ways you'll use copies of past income taxes can help you out:

? As an employment record. Whether or not you've got work for several corporations over the previous few years or do freelance work, it will generally be onerous to stay track of where you were working when. Copies of past income taxes let you know not only who you were working for, but conjointly when, where, and the way a lot of they were paying you. This is invaluable info for deciding what rates to charge, trying at a replacement job supply, or maybe just polishing up your resume. The additional data you have regarding your previous jobs, the better hiring position you are in.

? Applying for a mortgage. A mortgage is one among the most important expenses most individuals will have in a very lifetime--that is why it's therefore necessary to make positive you do not live through-charged. Dangerous credit--and debt caused by unhealthy credit--is one in every of the leading reasons folks do not purchase their own residence or get stopped at the bank. Fortunately, copies of past income taxes facilitate prove that you're not a credit risk. They show that you've got received a gentle paycheck, through good times and bad, and will even show that you manage to successful pay off debt. They may not speak, but past tax returns will build the most effective character references.

? If you ever get audited. Obtaining audited is not any fun, but it will happen, particularly if you're attempting to tackle paying off back taxes. Fortunately, there is no reason the panic. Most people who get audited aren't simply people who created easy errors, like doing the incorrect type or dropping a decimal point. These mistakes are dangerous, but having copies of past income taxes can facilitate verify your credibility to the IRS--as well as be there to test your numbers against theirs! This is often why keeping copies of past incomes taxes for up to 5 years is recommended.

When you get right down to it, there's all kinds of ways that that copies of past income taxes are handy to own around, from saving you money, to helping you get loans or perhaps paid more. Even if you file your taxes on-line, you'll be able to still save a replica of the filing. That method, you get all the information and savings, and none of the clutter. And even if you print them out, the a lot of copies, the better.

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