2. What are the different 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. How are taxes characterized? - 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. The Most Common Types of Taxes include: - 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. What are 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. What happens if you 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 Include: - 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 Your 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. Accurately Evaluate Your Financial Health - Understand your current financial state - Calculate weekly and monthly expenses - Find ways to reduce costs - Contact an expert for financial consultation
10. Do I have options besides filing for bankruptcy? Yes, they include: -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. The Benefits of Declaring Bankruptcy include: - Clears all outstanding debts - Fresh start on a new financial platform - Stress relief from creditors no longer contacting you The Disadvantage of Declaring Bankruptcy are: - 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. Common 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. Let Allmand & Less provide you with 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
