This document discusses various types of taxes, including direct and indirect taxes. It also discusses proportional, progressive, and regressive taxes. The document then lists some of the most common types of personal and business taxes. It provides information on tax rights and consequences of not paying taxes, including IRS audits and liens. The document offers options for dealing with debt, such as debt consolidation or settlement. It discusses bankruptcy, including benefits and disadvantages. The document aims to dispel myths about bankruptcy and encourages seeking professional counsel from Allmand & Lee.
1. Secrets About IRS Debt Types of Taxes: - Direct Tax – Tax paid directly to the government by the person who owes it. - Indirect Tax – Tax that can be shifted or passed on, collected by an intermediary and passed on to the government.
2. Tax Characterizations : - Proportional Taxes – A constant, uninterrupted rate of percentage towards all incomes and all income levels. - Progressive Taxes – The amount of the percentage rate increases whenever your income increases. - Regressive Taxes – The amount of the percentage rate decreases as your income decreases.
3. Most Common Types of Taxes: - Income Tax - Retirement Tax - Capital Gains Tax - Corporation Tax - Excise Tax - Tariff Tax - Property Tax- Estate Tax - Personal Property Tax
4. Personal Taxes - Taxes on the total income of the individual, with some deductions permitted. Business Taxes - Taxes levied on the income of companies, the difference between gross receipts, expenses, and additional write-offs. - Business taxes are based on the type of corporation: Sole Proprietorship, S-Corporation, C-Corporation
5. Tax Rights: - Every adult is required to submit a tax return and pay appropriate taxes. - The government could audit your tax returns, if they choose to do so. Can’t Pay the Taxes You Owe? - The IRS can negotiate a settlement amount, reduce interest and penalties or waive them altogether. - Offer-In-Compromise – An agreement between you and the IRS that settles your tax liabilities.
6. Consequences of Not Paying Taxes: - The IRS can file a lien against you. - The IRS can garnish your wages and seize your personal property. - The IRS can seize your personal assets.
7. What are Audits? - Audits – An in-depth examination of what you claimed in your income tax filing. - The government conducts randomized audits every few years. - Audits depend on your income tax bracket. - The more money you make, the greater the likelihood you will be audited.
8. Don’t Ignore Financial Problems - Ignoring financial problems will not make them disappear. - Contact Allmand & Lee and let professionals counsel you on the best path in dealing with the IRS. 224-884-4176
9. Evaluate Your Financial Health - Understand your current financial state - Calculate weekly and monthly expenses - Find ways to reduce costs - Contact an expert
10. Options Other than Bankruptcy -Debt Consolidation – Combining debts so you only have one bill to pay each month. - Debt Settlement – Reducing debt amount with the agreement of both the debtor and the creditor. - Forbearance – Repayment program set up by the lender to stop the foreclosure on a debtor’s home.
11. Benefits of Declaring Bankruptcy - Clears all outstanding debts - Fresh start on a new financial platform - Stress relief from creditors no longer contacting you Disadvantage of Declaring Bankruptcy - There is a stigma attached to filing bankruptcy, if others find out you have. - You may lose your assets. - Coping with major lifestyle changes can be difficult. - It may be harder to get credit again.
12. Myths about Bankruptcy : - Everyone will find out I filed for bankruptcy - Bankruptcy will ruin my credit for 10 years - Filing for bankruptcy makes me a bad person - I will lose everything I have - I will never be able to buy a house again - I can choose to include only what I want in my bankruptcy filing - My spouse and I must file bankruptcy together - I am only allowed to file for bankruptcy once - I will never be able to get credit again
13. Seek Professional Counsel - Allmand & Lee can provide counsel on the best time and form of bankruptcy to file - Allmand & Lee have over 20 years of experience filing bankruptcy cases - Allmand & Lee file thousands of bankruptcy cases each year - Contact Allmand & Lee at 224-884-4176 for more information
