Be careful with your passport! The IRS may take away your passport in case you make a scam.
Make sure you are well prepared when the time to declare your taxes arrive, as it can be the reason for the government to send you a notification of foreclosure.
There are different levels of debts so keep reading to stay tuned about the IRS and its process.
What is the IRS?
The IRS (Internal Revenue Service) provides taxpayers of the United States help to understand and follow their tax responsibilities according to the revenue law. It deals with taxes such as:
- Income tax: based on the money earned, businesses and individuals must pay an amount to fund public services like schools, defense, healthcare, etc.
- Inheritance tax is when someone dies and leaves you assets (money, properties, and so on).
- Gift tax: when you give someone something valuable (money, properties, jewelry, etc) in exchange for nothing, here you must report it to the IRS if the amount is over $17,000 per person and per year (2024).
- Excise taxes: taxes paid for specific products because of health issues or regulations. These products are: alcohol, tobacco, gasoline and diesel, luxury or polluting products.
Pay attention to tax season
You must pay your taxes every year! Between the months of January and April American citizens have to declare their incomes and pay what the government estimates they owe. Do not worry, everything is not so negative. In case you have paid more during the year, you may receive a refund.
If you feel new to this situation and do not know where to start, you can check and make an estimation of your tax payment on the government website. Also, you can contact an administration worker to solve any doubt regarding taxis or debts. https://www.irs.gov/
Ways of payment
There are two different methods of payment: the first one is if you work for a company, then you should not worry about calculating the amount or anything like that. The employer will make a reduction on your salary due to the tax and will pay it to the IRS.
On the other hand, if you work as a freelancer you must do all the paperwork. In addition, you will have to pay an extra part as you do not have an employer that contributes.
Not interested in paying? Well…
If you decide not to pay or you cannot deal with the amount required, you should know that you may be in trouble with the government. In case you owe a lot of money – there is an annual limit – it will be considered a grave tax debt and some of the consequences are:
- Rejection or repeal of your passport if you are out of the country.
- IRS is authorized for sending a warning of federal foreclosure, claiming your assets in a legal way to recover the amount.
All debts are not grave ones
The best way to avoid problems is to pay your taxes, but if you are unable to do it you should know that not all debts have the same consequences. Some of the tax debts which are not considered grave and your passport will be safe with you, these situations are:
- Having an agreement with the IRS: you previously talked to this department and there is a formal agreement that allows you to pay your debt in monthly payments. You must be committed to this to not be considered a bad debtor with a grave debt.
- Being in the process of applying for Innocent Spouse Relief: this means not being aware of mistakes committed by your wife or husband when declaring taxes.
This seems very overwhelming, but having access to the tools provided by the government to be informed is a great way to start being up to date with your taxes.
If you have trouble with the paperwork, contact a professional to help you with that task. About debts… Well, the IRS has several payment methods to help you solve the problem, but do not leave this situation aside. Get informed!
