fbpx

McFerran Law, P.S.
Practicing Real Estate Law in Western Washington since 1986

March 20th, 2017

Bankruptcy Update:
4 Compelling Reasons to File Your Tax Return Even If You Cannot Pay

Although you are receiving this email from our bankruptcy department, it is not exclusively or strictly a bankruptcy matter. See last week’s email to see how it applies to bankruptcy.

Should you file the tax return if you can’t pay the tax?
You got to the bottom of your tax return and the amount you owe is bigger than your checkbook balance.
Scared of filing the return for fear of immediate collection action?
Scared of even calculating how much you owe?  think an extension of time to file looks good?
Fearful that you’ll be hanging a sign around your neck:  squeeze this guy?
Nope.  It doesn’t work that way.
The IRS does not start harassing nonpayers for money on April 16th.  Or even September 16th.  They haven’t even posted the returns that have been filed by then.
Relax, breathe deeply, and file the return.  There are far more advantages to getting the return on file than risks in admitting you owe money you can’t pay.

Easy tax payment plans available
If you can’t pay the full amount of the tax owed, send a partial payment with your return.  Reduce as much as you can your debt to the tax folks.
Nothing requires that you enter into an agreement for payment.  Simply send money regularly toward retiring the tax.
Put your name, social security number and the tax year you want the money credited to on the check.
If you feel the need for a formal payment agreement with the feds, you can set up a payment plan, online, if you owe less than $50,000. (https://www.irs.gov/individuals/online-payment-agreement-application).

Separate penalties for failure to file
If you fail to file a tax return and don’t get an extension, you expose yourself to a separate penalty for failure to file the return.
That’s on top of the penalty for failure to pay as required.
So, it’s expensive to try to drop out of sight.

Filing returns start clock ticking on escape options
Taxes don’t live forever. There’s a collection statute of limitations (generally 10 years with some exceptions) that makes taxes uncollectable.  Bankruptcy laws permit the discharge of taxes of a certain age.
But both escape routes for taxes you can’t pay start counting from the filing of your tax return.  (More precisely, the SOL starts from assessment, but filing the return is a self-assessment).

Last year’s figures drive this year’s withholding
The most important reason to prepare last year’s tax return now is to get your withholding right for the current year.
Extensions to file are seductive, but dangerous.  It puts off squaring up your withholding for the current year, so this doesn’t happen again.
If you put off calculating just how much you owe for last year until October, you have only a few months before next April to get this year’s taxes paid in.
Closing your eyes to an under withholding problem won’t make it go away.
Calculate what you owe, make a plan to pay it if possible, and fix your withholding or quarterly payments so you’re OK next year.

If you are facing significant financial strain and want to explore how bankruptcy could provide you relief, then we invite you to contact McFerran Law, P.S. Our legal team has accumulated more than thirty-five years of bankruptcy law experience and is ready to help you explore your financial options during this difficult time. Call us at 253-284-3838 to schedule a FREE one-hour bankruptcy consultation at any of our offices in Tacoma, Seattle, Everett, Kent or Silverdale.
To be “REMOVED” from all future mailings simply reply to this email with the words “remove” or “unsubscribe” in either the subject line or body of the email.
If you have requested to be removed from our data set and you still continue to receive blast emails, please call us at 253-284-3830 and we will look up ALL of the email addresses it could be going out to and therefore being forwarded to the email address that is receiving the offending message.

Flat Fee Payable At Closing

Flat Fee Payable At Closing

I am a real estate transactional attorney. There is no charge for inquiries by phone or email. I can often quote a flat fee payable at closing. 

read more

Dodd-Frank And Seller Financing

The Dodd Frank Act restricted seller financing. It made due-on-sale clauses enforceable. However, lenders generally do not require payoff as long as the buyer pays the payments.

read more

Voltage Can Vary

Electricity can't be stored, so when I turn on a light, the power station must immediately produce some extra electricity. How is this possible?...

read more

Where Does Petroleum Come From?

Is anybody contending that oil is being replenished within the earth? Keith Hisey, Geologist, Researcher, Senior Manager, Historian at Consulting...

read more
Final Walk Through on New Construction

Final Walk Through on New Construction

The final walk through is important when buying a new home. Make a punchlist. Listed items can be changed after closing. Expect a final inspection one year after closing.

read more

4017 Colby Everett

JAMES ROBERT DEALREAL ESTATE ATTORNEY REAL ESTATE MANAGING BROKERCOMMERCIAL MORTGAGE BROKERKW EVERETT    425-774-6611James@JamesDeal.com I am...

read more
Helping Other Brokers

Helping Other Brokers

I am a real estate broker and a real estate attorney. I help buyers, sellers, and other brokers throughout Washington. Call me at 425-774-6611 when your purchase or sale involves legal issues. I can often quote a flat fee payable at closing.

read more

Sign In

CLICK HERE TOSIGN UP FOR A BETTER PROPERTY SEARCH TOOLYou will be asked for your email address and your telephone number.You do not have...

read more

Home Renovation Can Cost A Lot

Reality check: Don’t fall for these TV home renovation fibs Kitchen and bathroom remodels can cost more and take longer than HGTV shows lead you to...

read more

Home Inspection Questions

What Buyers Should Ask After a Home Inspection October 9, 2018 After an inspector has finished a home report, buyers may feel overwhelmed by any...

read more
Buy Real Estate In Partnership

Buy Real Estate In Partnership

If you do not have enough income to qualify to buy a home, join together with several others. But a larger home, big enough for several families. With multiple incomes you can qualify. If you want privacy you can jointly buy a tri-plex or a four-plex. These can be bought with an FHA loan with only 3.5% down.

read more
15605 Cascadian Way Bothell WA

15605 Cascadian Way Bothell WA

15605 Cascadian Way Bothell Washington. $430,000. 3 bedrooms, 2 bathrooms. Buy on FHA Rehab Loan. Hold long term. Eventually sewers may be extended 400 feet, and then two homes, two duplexes or five townhouses can be built. James Robert Deal, Attorney and Broker, 425-774-6611.

read more

Subscribe To Our Newsletter

Join our mailing list to receive our latest news and updates.

You have Successfully Subscribed!

Pin It on Pinterest

Share This
%d bloggers like this: