Taxes, The "Large Dollar Unit" And You - How To Prepare
It's no secret that California is having some serious economic troubles.
With a deficit of approximately twenty billion, it will be challenging for those in charge to devise a light at the end of the tunnel.
If you owe over $100,000 in taxes, it's easy to sympathize with California's current state, and understandable to feel intimidated by the prospect of the long, arduous road to financial freedom.
One of the best ways to make the path a little smoother is to cooperate with the initial attempts to collect, which come from the Automatic Collection Service (ACS.
) The ACS is the IRS branch responsible for the notices and telephone calls, the very first attempts to contact you in the hope of collecting overdue taxes.
While there are many conditions under which your case could be immediately placed in the hands of revenue officers, to heed the warnings from the ACS is your best bet in expediting the entire process.
In order to better help serve your needs, the ACS has released a checklist of necessary information to have on hand when contacting them.
Having all the items on the checklist will speed up the process, show your willingness to comply, and allow the ACS to work more efficiently to better understand the details of your unique case.
Before contacting the ACS, be sure to have the following ready for review: • Valid Power of Attorney (Form 2848) covering all tax periods • An explanation of the specifics as to why you are unable to pay • Completed Collection Information Statement (Form 433- A, B or F) • Number of individuals residing in the household • Value of 401K/Retirement • Copies of delinquent tax returns and /or ASFR returns • Rental income • Spouse's income and source of employment, including address and phone number • Three months of current bank statements (all accounts) • Investment income, if any • Year make of vehicles, value, equity, balance owed, and monthly payments • Employer's information • Secured loan(s) - amount of loan and remaining balance(s) • Life insurance policies (and value thereof) • Profit and Loss statements if self-employed • Three months of current pay stubs for both you and your spouse • Proof of out-of-pocket medical expenses • Commission statement • Value of all property and/or available equity • Proof of court-ordered payments • Proof of payments being made • Pension income and/or Social Security income.
With a deficit of approximately twenty billion, it will be challenging for those in charge to devise a light at the end of the tunnel.
If you owe over $100,000 in taxes, it's easy to sympathize with California's current state, and understandable to feel intimidated by the prospect of the long, arduous road to financial freedom.
One of the best ways to make the path a little smoother is to cooperate with the initial attempts to collect, which come from the Automatic Collection Service (ACS.
) The ACS is the IRS branch responsible for the notices and telephone calls, the very first attempts to contact you in the hope of collecting overdue taxes.
While there are many conditions under which your case could be immediately placed in the hands of revenue officers, to heed the warnings from the ACS is your best bet in expediting the entire process.
In order to better help serve your needs, the ACS has released a checklist of necessary information to have on hand when contacting them.
Having all the items on the checklist will speed up the process, show your willingness to comply, and allow the ACS to work more efficiently to better understand the details of your unique case.
Before contacting the ACS, be sure to have the following ready for review: • Valid Power of Attorney (Form 2848) covering all tax periods • An explanation of the specifics as to why you are unable to pay • Completed Collection Information Statement (Form 433- A, B or F) • Number of individuals residing in the household • Value of 401K/Retirement • Copies of delinquent tax returns and /or ASFR returns • Rental income • Spouse's income and source of employment, including address and phone number • Three months of current bank statements (all accounts) • Investment income, if any • Year make of vehicles, value, equity, balance owed, and monthly payments • Employer's information • Secured loan(s) - amount of loan and remaining balance(s) • Life insurance policies (and value thereof) • Profit and Loss statements if self-employed • Three months of current pay stubs for both you and your spouse • Proof of out-of-pocket medical expenses • Commission statement • Value of all property and/or available equity • Proof of court-ordered payments • Proof of payments being made • Pension income and/or Social Security income.
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