Ever found yourself typing how to check if you owe money to the irs into a search? You are not alone if that is what you may think. It is not an easy thing to figure out, and taxes may be enough to boggle your mind. The easiest form, the 1040EZ, has thirty three pages of instructions. Not exactly light reading.
A tax levy, under United States Federal law, is an administrative action by the Internal Revenue Service better known as the IRS. Under statutory authority and without going to court, that allows them to seize property to satisfy a tax liability. Back IRS taxes are paid in this way, and it can be a scary thing. Finding out if you owe them money is usually not something to put off.
Before 1776, the American Colonies were subject to taxation by the United Kingdom. Taxes have been around since then, though the view on them has not changed much. They are necessary and hated, but there is no way around them. Owing back taxes means more debt, and should be avoided at all costs.
However sometimes it is not the fault of an individual. Employees who have been fired in order to avoid handling a levy happens, but it is a criminal offense. Federal law provides for a fine of up to 1,000 dollars and imprisonment for up to one year on an employer who willfully fires an employee in connection with a garnishment of the wages that employee earns.
Garnishment is one way that owing the IRS money can make things difficult for you. They are allowed to take out amounts from the wages you make if you owe them money. If you owe the IRS already, this might be a helpful way to pay back that money.
By 1989, taxpayers in thirty six states could file their taxes online, but just a year later in 1990, everyone could. This is a way to not only figure out if you owe the irs money, but to make sure that if you do not already owe them money, you never will. Since everything is digital, keeping track of your expenses has become easier.
So if you have ever found yourself wondering how to check if you owe money to the IRS, watch your paychecks, and if you keep records online, look at those as well. Consult someone if you are completely unsure as well. Learn more about this topic here.