Law Articles And Legal Issues

Bills.com Cautions Delinquent Taxpayers to Respond to IRS Now

San Mateo, Calif. (PRWEB) April 16, 2008 -- With most federal and state income tax returns due this month, the clock is ticking for those who have not yet filed returns, and procrastinating racks up penalties, interest charges and the danger of punitive action by the IRS, warns Brad Stroh, co-founder and co-CEO of free online consumer finance portal Bills.com (www.bills.com).

Bills.com is the online portal for Freedom Financial Network, LLC (www.freedomfinancialnetwork.com). The company's Freedom Tax Relief division (www.freedomtaxrelief.com) provides tax-specific debt resolution services.

Stroh offers nine things Americans must know about handling their taxes NOW:

1. Penalties, penalties: Filing late racks up penalties and interest for those who owe money to the Internal Revenue Service (IRS). The penalty for filing late is 5 percent of the amount of tax due shown on a return - each month. Penalties max out at 25 percent for returns that are one year late. In addition, a taxpayer paying late will pay monthly interest at half of 1 percent of the unpaid amount each month. On top of these penalties is regular interest. The bottom line: Filing a return one year late can result in penalties and interest that add as much as 38 percent to the tax owed on a tax return.

2. Get an extension: If for some reason you cannot complete out your return, you can file for an extension (IRS Form 4868). You might still have penalties, but they will be less than if you simply do not file.

3. Interest is a one-way street: Taxpayers who file late and expect a refund will not receive any interest on the refund amount. If a return is filed more than three years late, there will be no refund - the IRS keeps the funds.

4. The IRS has a heart: Well, a bit of a heart, anyway. Taxpayers who absolutely cannot pay taxes should contact the IRS. The agency has policies that cut some slack for taxpayers who contact the IRS or pay a late bill before the IRS finds them (for serious scofflaws, IRS policies offer reduced or no jail time if the taxpayer comes to them first). For those who cannot pay because of a death in the family, serious illness, financial records lost in a natural disaster, or reason the IRS deems "reasonable cause," the IRS might waive penalties after being contacted by the taxpayer.

5. Pay what you can: The penalties for not paying tax owed with a filed return are much less than the penalties for not filing a return with an unpaid balance. If you are considering not filing a return because you cannot pay the bill, you are probably better off filing and avoiding the substantial late-filing penalties.

6. Pay how you can: If it is at all possible for you to pay your tax bill, the IRS Web site suggests taxpayers consider bank loans, cash advances on credit cards, raiding savings accounts, borrowing against retirement or life insurance, or using equity in assets (such as a home) to pay. However, if you are in dire financial circumstances, exchanging one debt for another will not make things easier, and putting a home at risk is almost never a smart move. Consult a tax and/or financial adviser before making a decision.

7. Know your options: The IRS sets up various methods for taxpayers to pay taxes owed. These include: an installment agreement (a payment plan); "currently not collectable status," a temporary delay in which the IRS waits to collect (but still charges penalties and interest, and may put a lien on assets); or an offer in compromise, where a taxpayer who is out of financial options makes a one-time settlement agreement with the IRS to pay a lesser amount. Taxpayers with tax debts under $10,000 usually can manage the payment on their own or via an installment plan arranged with the IRS.

8. Do not count on bankruptcy protection. Historically, consumers in severe IRS debt might file for Chapter 7 bankruptcy protection. Now, with the bankruptcy "means test," many consumers must file Chapter 13 bankruptcy, which establishes a repayment plan, rather than wiping out all debt.

9. Get help: Specialists can negotiate directly with the IRS on behalf of consumers who owe $10,000 or more. Tax relief specialists usually are attorneys, enrolled agents or certified public accountants with special training and experience. They can navigate the intricacies of IRS forms and calculations, help consumers understand the criteria the IRS imposes, and then help them get back into good standing with the IRS.

"Whether tax day is on its way or has come and gone, the sooner you file and pay, the better," Stroh urges. "If you're facing a bill that you know you can't handle, seek out help from a tax relief specialist. When it comes to taxes, remember, the operative word is NOW."

Based in San Mateo, Calif., Bills.com is a free one-stop portal where consumers can educate themselves about complex personal finance issues and comparison shop for products and services including credit cards, debt relief assistance, insurance, mortgages and other loans. The company blogs about consumer finance issues at http://www.bills.com/blog. Since 2002, Bills.com has served more than 40,000 customers nationwide while managing more than $1 billion in consumer debt. Bills.com is the online portal to Freedom Financial Network, LLC, whose co-founders and CEOs, Andrew Housser and Brad Stroh, have been named Northern California finalists in Ernst & Young's Entrepreneur of the Year Awards.

# # #

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

Other Law Sites
Search The Internet For Other Law Sites

Law Books
Search For Law Books At FindaBook.com

Lemon Law Attorney, Dana Lynn Tarquini, Featured at Lemon Law Administrators Conference
Ms. Tarquini, one of the country's most prominent lemon law attorneys, participated in panel discussion at the 10th anniversary lemon law administrators conference in Atlantic City.

Pending Federal Law Threatens All Copyright Owners says the Hodgson Law Group
The Shawn Bentley Orphan Works Act of 2008 (S. 2913) "Orphan Works Act of 2008" (H.R. 5889) allows anyone to use a copyrighted work without first obtaining permission. The user can later claim that a diligent search was conducted but the owner could not be found in any later action for infringement. This new legislation will apply to all copyright owners whether or not the work was previously registered with the Copyright Office. The legislation threatens the rights of artists, photographers, composers, film makers, publishers, and visual artists says the Hodgson Law Group. The Copyright Office not only endorses this legislation, but also advocates further changes that go beyond the proposed statute in reducing copyright protection. T...

CalBizCentral Announces Booklets to Help Businesses Navigate State, Federal Employment Laws, Reduce Legal Risk
CalChamber's CalBizCentral 'What Every Manager Needs to Know About' series provides training managers need to comply with confusing laws.

Fresno Family Law Attorney Says Collaborative Law Can Provide Smoother and More Affordable Divorce
Fresno family law attorney Erin Rhames-Childs says collaborative law can help people can reduce the conflict and cost of divorce litigation.

Elizabeth A. Kreitzer, Certified Family Law Specialist, Joins Klinedinst Family Law Group
The California-based law firm of Klinedinst PC has added Elizabeth A. Kreitzer, Certified Family Law Specialist, to its expanding Family Law practice group. Ms. Kreitzer's addition, combined with the strength of the firm's existing litigation teams, will help ensure that every client receives sophisticated, professional and compassionate representation, Ms. Kreitzer is the recipient of the Michael C. Shea Chair in 2005, and adds a wealth of family law knowledge to the department. She is experienced in working with sophisticated clients handle complex family law issues, including divorce, paternity and custody disputes, prenuptial agreements, adoption proceedings, and other family law matters.

Divorce Lawyer Says Families Do Not Belong In The Court Of Law
Fresno divorce attorney Erin Rhames-Childs says that the court of law is no place to divorce. The courts are overworked and understaffed - leading to poor legal decisions that are not in the best interests of those involved. Collaborative divorce is a way for couples to divorce while maintaining their dignity, making decisions that truly are in the best interests of their children and preserving their finances. Collaborative divorce is quicker, cheaper, and better for maintaining functional relationships for after the divorce is over.

Kirsten Branigan Joins McDonald Law Group, LLC Adding Depth in Employment Law
Kirsten Branigan and Nancy McDonald join forces with a shared passion--advocating for advancement of women in the practice of law.

New Legal Guide to Divorce by Family Law Expert
A brand new legal guide to divorce, "Divorce and Separation Today", has been newly published by DragonCub. Far more useful than the average divorce guide, it delves into how the divorce courts operate as well as providing practical and sensible advice on emotional and other sensitive areas. It is an essential guide for anyone considering or going through divorce.

Los Angeles Divorce Attorneys, The Family Law Company, Opens a New Office in Beverly Hills
Los Angeles family law attorney and founder of The Family Law Company Pamela Wright opens a new office in Beverly Hills. The Family Law Company offers high-quality legal services at affordable rates for divorce, paternity, child custody and child support actions because justice doesn't have to cost a fortune.

Monroe, N.C. Family Law Attorneys Merge Practices to Form Stepp Lehnhardt Law Group
Donna Stepp and Dana Lehnhardt combine local practices and operations, creating 4-attorney general practice law firm with emphasis on family law

Legal Resource Local-Attorneys Expands to Include Divorce Law
Local legal resource website Local-Attorneys has announced that it is expanding to cater to divorce law specialists and visitors in need of advice. Web users will be able to browse local law firms who specialize in every sort of legal vertical. Find the best advice and attorneys in the industry.

Houston Bankruptcy and Family Law Practice Announces Affiliation with Houston Civil Litigation, Business Law and Immigration Law Firm
Houston bankruptcy attorney Michael Busby of Busby & Associates joins forces with Carlos Peniche & Michael Rojas of Peniche and Rojas to offer Texans comprehensive legal services - from divorce, personal injury and civil litigation to contract disputes, employment law and immigration services.

Tax Attorney Web Site Warns of Upcoming Tax Laws in 2008
TaxAttorneyHelp.com, an online network of tax attorneys, is preparing to assist taxpayers with new laws in the coming year.

Copyright Infringement Cases Can Teach Us To Obey Copyright Laws
Copyright infringement cases can be both costly and time consuming. Considering copyright infringement is something that isn?t as easily defined as theft or speeding, there are numerous copyright infringement cases changing the way copyright law is viewed in the U.S. By reviewing a few of these copyright infringement cases, you can get a better idea of what is, and what is not, acceptable use of copyrighted works.