You would think from the hysteria over the debt ceiling that it is a once in a life time event. But it is actually the 73rd time the debt ceiling has needed to be increased since 1940. Bush Jr. alone asked for and got seven increases. This time our we reach our debt ceiling on on August 2nd. Unable to borrow more money the Treasury will have to decide which bills to pay. While Federal revenues will still be c. $180 billion a month, projected expenditures are c. $318 billion. Obviously tough choices will have to be made. The Tea Party says – no problem – we just keep paying interest on our bonds and like a family making the minimum payments on its credit cards and keeping up with the Obama mortgage interest deduction and car payments we will stay solvent.
Delinquent tax returns- Because they receive income reports from employers, the IRS can create and file substitute tax returns if you fail to file your own. IRS revenue personnel will then determine your total tax debt and contact you directly, either by phone or by mail for payment. If you fail to pay these estimated back taxes, the agency will get deadly serious. They may ultimately freeze your bank accounts, garnish your wages, and seize your personal possessions.
Tax Benefits- As you diligently pay your monthly mortgage, your tax advantage increases over the years. When you are paying for your own home you have the ability make a deduction on your federal income tax return for what you have paid towards the interest on the mortgage and property taxes. Some states also make allowances for additional Obama mortgage interest deduction. It pays to check with your accountant or tax advisor in regard to your allowable state deductions.
Financial Control- Paying for a home of your own prevents you from being subjected to surprise rent increases, especially if you have chosen a fixed rate mortgage. It also removes the stress of lease renewal. For many, becoming a homeowner is a solution for beating the high cost of retirement. It is entirely possible to pay off your home and live out your retirement years rent-free! Of course, as long as you own the home you will be responsible for the property taxes and insurance costs.
Talk to a professional- When you have the opportunity to make good on your tax debt, it is always a good idea to take it. We strongly suggest that you contact an experienced tax representative and have him file your past returns for you. After the missing returns have been submitted, your tax representative will interact with the IRS on your behalf. He will handle all communications with the IRS in an attempt to negotiate a manageable payment plan, or even a tax settlement if you qualify.
Owing back taxes is not the end of the world, in fact, it isn’t even uncommon. More than twenty million Americans owe money to the IRS. Many of them receive a Failure to File Notice in the mail years after the tax return in question was due. This seemingly scary missive is essentially a second chance. When the IRS asks you to file a missing tax return, it is best to oblige them. A talented tax representative can help you file back taxes before the IRS takes steps to recover an outstanding tax debt. With the right advisor, the process can be far less painful and more affordable than you might imagine.
Learn more about Obama Mortgage Relief Plan Qualifications.
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