| 1. Is it legal for the IRS to Levy my Wages? | | | | you can't pay, file your taxes to avoid criminal charges |
| Yes. The IRS can take up to 75% of your paycheck. | | | | and to prevent being hit with late fees. |
| The Internal Revenue Code (IRC) gives the IRS that | | | | 6. Can the IRS Levy my Bank Account? |
| power. Remember, the IRS is it's own judge and jury. | | | | Yes. The IRS can seize every cent in your bank |
| They don't have to go through the court system to | | | | account. They will first freeze your bank account and |
| seize your wages. | | | | send you a letter stating you have 21 days to find a |
| 2. Can I get an Extension to file my taxes? | | | | way to pay. If you don't act fast, the IRS will take the |
| Yes. You simply have to fill out form 4868 "Application | | | | money. |
| for Automatic Extension of Time to File Income Tax | | | | 7. Should I let the IRS know when I move? |
| Return." | | | | Yes. You might think you can hide from a tax bill, but |
| 3. Can I get an Extension to pay my taxes without | | | | you can't. Report your new address on form 8822 |
| interest? | | | | ("Change of Address"). If you don't, you can risk not |
| You can get extensions to file your tax return, but you | | | | receiving important notices or even your tax returns. |
| still must pay by April 15 or the IRS can impose a | | | | 8. Who can access my IRS file? |
| penalty and charge interest. Few payment extensions | | | | IRS files are not public records. The IRS can legally |
| are granted. And even then, only penalties, not interest, | | | | share your files with other Federal and State agencies. |
| stop accruing. | | | | And that's it. If IRS personnel are caught snooping, they |
| 4. How long should I keep my tax papers? | | | | can be fired. |
| At least six years. The IRS can audit you for up to six | | | | 9. Can my debt really be settled for "Pennies on the |
| years if you underreported your income by 25% or | | | | Dollar"? |
| more. So it's important to keep all your tax papers filed | | | | Yes. This phrase is referring to the the IRS's "Offer in |
| in case they're needed. | | | | Compromise" program. Only a select few. And for |
| 5. I can't pay my taxes. Should I file my Tax Returns | | | | your debt to be settled for "Pennies on the Dollar" you |
| anyway? | | | | have to display extreme poverty. |
| Yes. It's against the law not to file your taxes. Even if | | | | 10. Is it illegal not to file my taxes? |