Latest news with #taxdebt
CBS News
5 days ago
- Business
- CBS News
Is June too late to consider tax relief?
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. If you haven't paid your IRS tax bill yet, you may want to pursue tax relief as soon as possible. Getty Images By June, the rush of tax season is long gone. The reminders about filing your taxes by the annual deadline have slowed to a crawl, the tax-related headlines have moved on and most people have checked filing and paying their taxes off their to-do lists. But if you're still carrying tax debt owed to the Internal Revenue Service (IRS) bill, that unpaid bill can start to feel heavier as the weeks go by. At this point, you may also feel unsure about your options for catching up. After all, the IRS expects to be paid by the April 15 filing deadline, and the interest is racking up on your unpaid tax debt. In turn, you might be worried that any opportunity to fix the situation has already come and gone. That's especially true if you're hearing more from the IRS than you'd like. But while the calendar has moved on from tax season, your chance to address what you owe hasn't necessarily disappeared. Whether you're behind by a little or a lot, it's important to get ahead of potential collection efforts before they escalate. Is it too late to consider your tax relief options, though? Find out how to get help with your tax debt today. Is June too late to consider tax relief? In short, no — June is not too late to seek tax relief. While the official tax deadline has passed, the IRS doesn't stop working after April 15, and neither do your options. In fact, if you've already filed your return but haven't paid off your tax bill, you're in a better position than someone who hasn't filed at all. The IRS knows what you owe and may already be assessing penalties and interest, but they also want to work with taxpayers who are actively trying to resolve their debts. Here's what hasn't changed in June: You can still apply for a payment plan to spread out your balance over time. You may be able to negotiate with the IRS If your financial situation is especially tight, you might qualify to temporarily pause IRS collection efforts You could even apply for certain types of penalty relief What has changed, however, is the clock. As more weeks pass, interest continues to accrue, and unpaid taxes can eventually lead to enforcement actions, like wage garnishment, bank levies or tax liens. June isn't too late to get ahead of those consequences, but the window of opportunity won't stay open forever. Explore the tax relief options available to you now. How can I pursue tax relief now? If you owe taxes and haven't paid, here's how to take control of the situation now, before things get worse: Know what you owe Check your IRS balance online using the agency's online portal. It shows your current debt total, including interest and penalties, and helps you avoid being caught off guard. Consider your payment plan options The IRS offers both short-term and long-term payment plans: A short-term plan (for balances under $100,000) gives you up to 180 days to pay in full. A long-term plan (aka an installment agreement) lets you pay monthly over several years, though setup fees may apply. These can often be set up online, and they'll help stop additional collection actions as long as you stay in compliance. Explore other IRS relief programs If you can't realistically pay the full amount, even over time, you may qualify for one of these options: Offer in Compromise: You propose an amount you can afford to pay, and if the IRS accepts, the rest is forgiven You propose an amount you can afford to pay, and if the IRS accepts, Currently Not Collectible status: If paying would leave you unable to cover basic living expenses, the IRS may temporarily halt collection efforts. Your debt doesn't go away forever, but it buys you time. If paying would leave you unable to cover basic living expenses, the IRS may temporarily halt collection efforts. Your debt doesn't go away forever, but it buys you time. Penalty abatement: If this is your first time being late or you're facing unexpected hardship (like a medical emergency or job loss), you may qualify for penalty forgiveness Get professional help if needed Tax debt can be complicated, especially once penalties start piling up or collection notices start arriving. If you're feeling overwhelmed or unsure which tax relief option fits your situation, now may be the right time to bring in a professional. Tax relief specialists, which typically include enrolled agents, certified public accountants and tax attorneys, can assess your finances, explain which IRS programs you may qualify for and help you complete the necessary paperwork accurately. They can also communicate with the IRS on your behalf. Just be sure to vet any tax relief company or professional you're considering. Look for licensed tax professionals with experience resolving IRS debt, not just companies that make bold promises about "eliminating" your tax bill. Be cautious of high upfront fees and watch for red flags like guarantees of specific outcomes or requests for payment before services are rendered. By June, many tax professionals are also past the busy season rush, meaning you may be able to get more dedicated attention and quicker help than you would during the first few months of the year. The bottom line Owing back taxes can feel like a weight that only gets heavier with time, but June is still early enough to make meaningful progress. Whether you're just now catching up or have been hoping the IRS would forget (they won't), tax relief is still on the table. From payment plans to hardship-based options, the IRS has systems in place to help people who are trying to do the right thing, even if they're a little late. The worst thing you can do, though, is ignore the problem. But if you take action now, you may be able to stop penalties from stacking up, avoid more aggressive collections and start chipping away at what you owe on your own terms.
CBS News
27-05-2025
- Business
- CBS News
Tax relief: Should you hire a pro or do it yourself?
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. You may be able to solve your IRS problems on your own, but in some cases, securing professional help makes more sense. Getty Images/iStockphoto When you're staring down an overdue tax bill, a stack of unfiled returns or an ominous letter from the Internal Revenue Service (IRS), it's tempting to procrastinate on finding a solution. After all, the idea of dealing with the IRS can be overwhelming, especially considering how complicated tax issues can be. But avoiding the problem only makes it worse, as the penalties and interest can stack up quickly, and before you know it, you're in deeper than you ever thought possible. That's when the idea of tax relief comes into focus, and so does the big question of whether you should hire a tax relief professional or try to handle things on your own. When you pursue tax relief, the goal is typically to find ways to reduce, settle or better manage your tax debt. And while the IRS technically allows you to pursue most of these options on your own, there's also an entire industry built around helping people navigate this process. So, how do you know which route makes sense for your situation? Below, we'll break down when a do-it-yourself approach could make sense and outline when it makes sense to call in reinforcements. Chat with a tax relief expert about your options today. Tax relief: Should you hire a pro or do it yourself? Tax relief is a broad term that covers a handful of IRS programs designed to help taxpayers resolve back taxes. The most common options include setting up installment agreements or monthly payment plans, applying for an Offer in Compromise (meaning that you settle your debt for less than you owe), requesting penalty abatement and proving you're currently not collectible due to financial hardship. These programs won't erase your tax debt overnight, but they can help reduce the burden and prevent more aggressive collection efforts like wage garnishment or tax liens. Some forms of relief are relatively simple to request, especially if your tax debt is under $5,000 and your finances are straightforward. But others, like an Offer in Compromise, involve significant paperwork and must meet strict IRS criteria. In those cases, even getting the paperwork wrong can lead to a rejection. That's where the question of DIY versus professional help really starts to matter. When you should pursue tax relief yourself If your tax debt is on the lower side and you feel comfortable navigating the IRS website or calling their helpline, you may be a good candidate for DIY tax relief. For example, if you just need to set up a payment plan or ask for a penalty to be waived due to a first-time mistake, the process is usually simple and clearly outlined on You can also use the IRS's online tool to apply for a long-term installment agreement in just a few steps. Another situation where DIY might make sense is if your income and expenses are easy to document and you have a clean tax history. The IRS often responds more favorably when you've consistently filed your returns and don't have a long track record of nonpayment. In these cases, doing it yourself can save you the fees that a tax relief firm would charge. Still, you need to be honest about your comfort level. If dealing with forms, financial statements and government paperwork sounds daunting — or if you're likely to procrastinate — doing it yourself may not be the most effective route, even for a simple case. Find out how the right tax relief strategies could help you now. When to hire a tax relief pro Sometimes, the stakes are too high to go it alone. If you owe a large tax balance (typically more than $10,000), are facing IRS enforcement actions like liens or levies or want to pursue an Offer in Compromise, professional help is often worth considering. The tax pros employed by tax relief companies, which typically include enrolled agents, certified public accountants and tax attorneys, understand how to present your case to the IRS in a way that maximizes your chances of approval. You should also consider hiring help if you're dealing with multiple years of unfiled returns, are self-employed or have irregular income. These types of situations can complicate your eligibility for tax relief programs and make the paperwork much harder to handle. A qualified professional can help ensure you're compliant, organize your financials and act as an intermediary between you and the IRS. That said, not all tax relief companies are created equal. Watch out for firms that promise guaranteed results or claim they can settle your debt for pennies on the dollar. No one can promise that outcome, and any reputable provider will take the time to evaluate your specific case before charging large fees. The bottom line If you're planning to pursue tax relief, it can make sense to secure professional help, but it's also possible in certain cases to approach the process yourself. So, before you make a decision, you should weigh the factors and determine the smartest option for your specific circumstances. If your debt is small and your situation is straightforward, handling it yourself could be a smart, low-cost move. But if your finances are complex, the debt is substantial or you're at risk of enforcement actions, it's probably time to bring in a pro. Either way, the worst move is doing nothing. Whether you hire help or take the DIY route, acting sooner rather than later can keep the situation from spiraling further out of control and get you one step closer to financial peace of mind.
CBS News
22-05-2025
- Business
- CBS News
5 tax relief questions to ask a specialist now
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. Before you start working with a specialist on the tax relief process, make sure you're asking the right questions. Getty Images Tax season may be over, but for many people, the tax debt-related stress is just starting to ramp up. If you owe back taxes, have unfiled returns or just got a letter from the Internal Revenue Service (IRS) about a similar issue, there's a good chance that the penalties are piling up and interest is growing by the day. Between those financial penalties and the other potential repercussions of having overdue tax debt, the stress and the costs can spiral fast if you don't take action. That's why more people are turning to tax relief specialists for help. These professionals can help you explore the full range of options for resolving your tax debt, whether that's negotiating a payment plan, applying for an Offer in Compromise or stopping wage garnishment. But as with any financial advisor, you'll get the best results if you know what questions to ask right from the start. Asking the right questions upfront could help you save money and get on the fastest path to resolving your tax debt, which is crucial when the extra fees are racking up. So what exactly should you ask a tax relief specialist right now? Below, we'll detail five questions worth getting the answers to. Get help with your IRS tax debt now. 5 tax relief questions to ask a specialist now Here are the top questions to prioritize right now if you're dealing with tax debt: What tax relief options am I eligible for based on my current situation? Not all tax relief strategies apply to everyone. Some are designed for people facing serious financial hardship, while others work better for those with steady incomes who just need more time. Ask the specialist to walk you through the options that match your income, assets, debt amount and financial goals. This might include: The goal is to figure out not just what's technically available, but what's most likely to get approved in your case and what will save you the most money long-term. Learn what IRS tax debt solutions are available to you here. Can I stop IRS collections or garnishments while I explore my options? This question is crucial if you're already receiving collection letters, facing a tax lien or seeing part of your paycheck or bank account garnished. Many taxpayers don't realize that certain protections kick in automatically when you apply for tax relief, and a tax specialist can help you understand how and when to file the appropriate paperwork to temporarily halt aggressive IRS actions. For example, applying for an Offer in Compromise or requesting Currently Not Collectible status may stop collections while the IRS reviews your application, buying you time to plan your next move. Will tax relief affect my credit or future tax refunds? Unlike consumer debt, IRS debt doesn't typically show up on your credit report, but there can still be consequences. A federal tax lien, for instance, becomes public record and may impact your ability to borrow in the future. Or, if you're behind on taxes, the IRS can seize future refunds to cover your debt. So, make sure to ask how the relief option you're considering could affect your long-term financial outlook, including any risk of refund offsets, lien filings or compliance requirements you'll need to meet going forward. What documents do I need to prepare before we start the relief process? Getting approved for tax relief usually requires a fair amount of paperwork. You'll likely need to provide income documentation, expense details, tax returns and bank statements. The more organized you are from the beginning, the faster the process will move. Ask your specialist for a checklist of what they'll need, and don't be afraid to ask why each document matters. Understanding the process helps you stay in control and avoid delays or rejected applications. What are your fees, and how do I know this will be worth it? Tax relief services aren't free. Some companies charge flat rates, while others charge based on the amount of debt or complexity of your case. A trustworthy specialist will be upfront about their pricing and about whether they believe tax relief will actually benefit you. Ask them to explain not just the cost, but the potential savings. For example, if they can help reduce a $20,000 debt to $5,000 through an Offer in Compromise, the fee may be worth it. But if your debt is small or you're likely to qualify for a payment plan on your own, they should tell you that, too. The bottom line The stakes are high when you're dealing with the IRS, but the right strategy and the right expert can make a huge difference. So, before jumping into any agreement or paying upfront fees, take the time to ask the right questions — and make sure the answers you're getting are adequate, too. After all, a little due diligence now can save you a lot of money and stress down the road.
The Guardian
21-05-2025
- Business
- The Guardian
Disability services provider which collapsed with $500,000 tax debt investigated by NDIS regulator
The NDIS regulator is investigating a Queensland-based disability housing and support provider – which collapsed in March with more than half a million dollars in tax debt — after residents made complaints alleging that their support needs were not being fully met. Several former residents and staff claim the company, Core & Capacity Disability Support Pty Ltd, had not provided adequate care for people with disability and imposed restrictions on residents that isolated them from the community. The former residents and staff also allege the company failed to file some rental bonds and operated audio-recording cameras throughout the accommodation complex it managed in the Brisbane suburb of Acacia Ridge; leading residents and staff to fear their private conversations could have been listened to. Sign up for Guardian Australia's breaking news email Core & Capacity provided accommodation and disability support services to participants of the National Disability Insurance Scheme until the federal court ordered it be wound up in insolvency on 19 March due to $507,782.84 in unpaid taxes, corporate records and court documents show. Guardian Australia can reveal NDIS participants are still being housed and disability support services being provided at the same site in Acacia Ridge, under new companies registered shortly after the Australian Taxation Office launched federal court proceedings to wind up Core & Capacity on 15 November. A spokesperson for the NDIS Quality and Safeguards Commission said, in response to questions from Guardian Australia about the residents' concerns, that it was 'currently looking into these matters,' while the liquidator for Core & Capacity has told creditors in a report filed with ASIC that she intends to launch an insolvent trading claim. The director of Core & Capacity, Liam Luppino, said it was never his intention to cause distress and that the allegations against the company are 'misguided'. 'I'm just quite sad about how it all unfolded,' he said. Core & Capacity offered independent living options (ILOs) for people with disability, pitched as a flexible housing and support arrangement. NDIS participants were given standard rooming house leases, but with added conditions guaranteeing the company 22 hours of one-on-one support work a week, paid for by the resident's NDIS funds, and banning external support workers from the premises without the company's written permission. In the midst of insolvency proceedings, Core & Capacity staff began to issue residents with new agreements for rent and disability support. The agreements, seen by Guardian Australia, used Core & Capacity branding but requested payments be made to two different companies: CCDS Acacia Ridge Operations and CCDS Acacia Ridge Housing. Those companies were registered with the Australian Securities and Investments Commission (ASIC) on 6 December and 23 January under the name of Deborah Luppino, the mother of Core & Capacity's director, secretary and ultimate shareholder, Liam Luppino. The wind up order in March came just days after a resident was found dead in the Acacia Ridge complex. Queensland Police said the resident's death did not appear to be suspicious. The events were not related. Guardian Australia has confirmed that multiple complaints have been made to the NDIS Commission about the conduct of Core & Capacity, including one as early as November 2023. But an investigation did not begin until February, after Labor MP Graham Perrett and Greens senator Larissa Waters intervened on behalf of a former resident and constituent, Shaun Bickley. Bickley has been contacting authorities about Core & Capacity for six months. He told Guardian Australia he was deeply frustrated by what he felt was too little action for vulnerable people in the company's care, coming too late. 'I'm verbal, have good supports, used to work in disability advocacy, can contact MPs and reporters, and everything I did was still ignored. What chance did anyone else there have at being heard?' Bickley said. Bickley and another former resident, Ron Bath, told Guardian Australia they felt the disability support they received at Core & Capacity was inadequate. Correspondence from Bickley to the company, seen by Guardian Australia, documents numerous instances in which he queried the quality of his support and billing on his plan. In November, he cancelled his service agreement with the company on grounds including allegations that support workers frequently arrived late, left early, and supported other participants while on individual shifts with him. The company offered to investigate, but Bickley elected instead to make a complaint to the NDIS Commission outlining these and other concerns. Bath described similar experiences with his support workers. 'They'd come and do the cleaning, then go and sit under the carport and play with their phones,' said Bath. 'They didn't want to know me but [the company was] happy to send me invoices.' Bath did not formally complain to the company as he did not expect to live there longer than six months. Luppino vehemently denied that the support provided had been inadequate. 'We were there to help, not take advantage of them,' he said. Former staff and residents claimed that at times the personal care of high-needs residents was visibly neglected, with incontinent residents observed in soiled clothes, and inexperienced support staff rostered to work with very volatile or aggressive residents. They complained that the company operated cameras throughout the complex that recorded both video and audio, including in the staff room and shared indoor areas. Signage on the site indicated the presence of security cameras but some staff and residents said they were initially unaware that they recorded audio and said they felt uncomfortable with private conversations potentially being recorded. Guardian Australia has seen extracts of surveillance footage of a resident falling down a set of stairs at the Acacia Ridge site, in which speech is clearly audible. Guardian Australia has also seen evidence suggesting the company also failed on at least four occasions to file the residential bonds it collected from tenants with the Queensland Residential Tenancies Authority, an apparent breach of the Residential Tenancies and Rooming Accommodation Act 2008. Residents were able to get their bond money back from the company when they left, but some were concerned that the funds may not have been kept with the appropriate authority. Sign up to Breaking News Australia Get the most important news as it breaks after newsletter promotion Luppino said all Core & Capacity's staff were required to have or be enrolled in a certificate 3, but that the company could only operate within the parameters of a participant's NDIS funding. 'So yes, there would have been times when participants were un-cared for, because they only had limited amounts of funding,' Luppino said. 'In reality, they should have gone to a SIL [Supported Independent Living] home where they would have had more care, but they weren't funded for a SIL home. Often support coordinators would get them in with us because it was better than nothing.' He said while the on-site cameras did record audio, 'they were never used with ill intent' and no personal conversations were recorded. Luppino said the company's procedures had always required rental bonds to be lodged, but he had attempted to address the issue of non-lodgement when it had been raised with him late last year. Residents said they were also prevented from having visitors after 10pm. Visitors at other times were required to register their personal details and the reason for their visit with the company. Bickley said the ban on external support workers coupled with the restrictions on visitors had the effect of isolating residents from the community. 'Only support workers would see us, at best, unless we broke the rules and risked eviction,' he said. 'That made me feel like a prisoner,' Bath said. The rules effectively prohibited his daughter from staying with him, 'so we had to sneak [her] in without them knowing.' He said his six months living at the complex 'left a life scar on me'. Luppino said he implemented the ban on external support workers to prevent sub-standard providers from taking advantage of participants. 'I feel horrible that they felt trapped. That was never our intention,' he said. 'I wanted to create a little community of people that felt like they belonged.' Luppino initially told Guardian Australia the restrictions were a Brisbane city council requirement for rooming houses. A spokesperson for Brisbane city council said there was no such council rule or regulation. Luppino later clarified that it was a condition of the head lease held by the company. On 16 April, Core & Capacity's administrator, Kaily Chua from Rodgers Reidy, an insolvency and forensic accounting firm, said in her report to creditors, filed with ASIC, it was her assessment that 'the Company's failure was caused by poor strategic management and poor cash management.' Chua said in the report she intended to initiate an insolvent trading claim, but was still determining particulars, as Luppino had allegedly provided incomplete and partial information to liquidators, including failing to disclose a loan of $117k from Core & Capacity to another of his businesses, Luppino's Hair. The company became aware of its tax debt in February last year, Luppino said, but was unsuccessful in negotiating a payment plan. In an affidavit filed in federal court, he said he had received an offer on a residential property he owned in Mount Warren Park, and intended to use the proceeds of the sale to pay off the tax debt. At the time of publication, the property was still listed for sale but marked as 'under contract'. ASIC records list the Mount Warren Park property as Luppino's address, as well as the registered address and primary place of business for the new companies that have taken over operations at Acacia Ridge, and the residential address of their director, secretary and shareholder Deborah Luppino, his mother. Liam Luppino said he had 'nothing to do' with the creation of the new companies. 'At the time I just wanted to let it all go,' he said. 'But my mum, who is a very caring person, said if I do let it go, participants will be put on the street and have no support, so she decided she'd start her own company and look after them. At least that way they'd get some care.' Deborah Luppino did not respond to questions from Guardian Australia. Chua has reached out to the National Disability Insurance Agency to request they assist NDIS participants at Acacia Ridge who may have been affected by the company's collapse, she said in her report. The NDIA would not comment on the investigation. 'Where there is any risk to participants or the scheme, the NDIA will implement whatever compliance controls are necessary including contacting participants and supporting them to move to more appropriate providers,' a spokesperson said.
CBS News
19-05-2025
- Business
- CBS News
Does tax relief help with past-due debt?
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. If you owe back taxes to the IRS, it's important to understand what options you have that could help. Getty Images Each year, millions of taxpayers find themselves unable to pay what they owe to the Internal Revenue Service (IRS). But when you owe back taxes to the IRS, the initial balance isn't the only issue. The interest and penalties will also compound over time, so even a modest tax debt can quickly turn into an overwhelming financial burden. And, if you have unpaid taxes right now, at a time when borrowing rates are high, living costs are rising and the turbulent economy is causing other financial issues, it could be tough to find room in your budget to pay it all off. The IRS can also be pretty aggressive when it comes to collecting unpaid taxes, which can further complicate the issue. From wage garnishments to property liens and levies, the federal agency has an array of enforcement tools it can use to try and collect once a tax debt goes unpaid. But what many taxpayers don't realize is that there are also programs in place that could help to reduce, restructure or pause repayment of your tax debt. And, taking advantage of one of those programs could help curb collection attempts by one of the most aggressive creditors around. Still, navigating these programs can be tricky between the eligibility requirements and the paperwork, and if you're trying to use them to deal with past-due debt, specifically, it's important to know whether any of these solutions can help. So will tax relief help with overdue debt? Find out how to get help with your IRS tax debt now. Does tax relief help with past-due debt? Yes, tax relief can be a powerful tool for resolving your past-due IRS debt, especially when it's not possible to repay the full balance right away. The IRS offers several formal programs designed to help taxpayers reduce or manage what they owe. These include: All of these programs can either reduce the total amount you owe, pause collection efforts or make payments more manageable, which, in practical terms, helps with past-due tax debt. But success depends on your financial profile, the completeness of your application and your willingness to stay compliant with current and future tax obligations. Explore your tax debt relief options and chat with an expert now. What to consider before seeking tax relief While tax relief programs can be helpful, they're not a solution for every situation, and there are important trade-offs to be aware of before pursuing them. Here's what to know: Relief doesn't mean forgiveness. Except in rare cases like an accepted Offer in Compromise, most IRS relief options don't eliminate your debt; they simply make repayment easier. With installment agreements or CNC status, for example, you still owe the full balance, and interest continues to accrue until it's paid off. Your credit isn't directly impacted, but other consequences may follow. Unlike private debts, IRS actions typically don't show up on your credit report. But that doesn't mean there's no fallout. Liens, levies or wage garnishments can hurt your financial stability and make it difficult to get approved for new credit, loans or even some jobs. Scams can be an issue. Some tax relief companies advertise promises that sound too good to be true and often are. While many legitimate firms do offer real assistance, others charge high fees without delivering results. If you decide to seek outside help, look for tax relief companies that employ licensed tax attorneys, enrolled agents or certified public accountants with experience in IRS negotiations. You need to stay compliant going forward. Once you enter into a tax relief program, the IRS expects you to keep up with future tax obligations — no skipping filings, and no missed payments. Falling out of compliance can void the relief arrangement and leave you worse off than when you started. The bottom line If you're struggling with past-due IRS debt, tax relief can be a legitimate and effective way to get back on track, but there are caveats. While these programs can reduce your total balance, stop collection actions or make your payments more manageable, whether or not they're the right solution for you depends on your circumstances. Success also generally hinges on understanding the options, applying correctly and staying current with your taxes from this point forward. For those who qualify, though, programs like Offers in Compromise and penalty abatement can offer substantial savings. And even if you don't qualify for a tax debt reduction, simply spreading payments over time through an installment agreement can provide much-needed breathing room. With the right strategy, it's possible to regain control of your finances and leave your past-due tax debt behind for good.
