Renting out Your Spare Room to Cover Your Bills May NOT be the Answer!

The current housing crisis means that many homeowners are considering renting their properties as an alternative to selling, or even renting out spare rooms to help meet their mortgage payments. But homeowners desperate for additional income in these tough economic times may find themselves in trouble with the Internal Revenue Service (IRS) when it comes to renting property.

Leasing one’s home (or a portion of it) to meet mortgage obligations can lead to disaster with the Internal Revenue Service (IRS) if any money collected as rent is not reported as income.

The IRS has a series of guidelines that have to be met when it comes to paying taxes on rental income and failing to properly report them. This can lead to complications that include fines, interest, and possible garnishment of wages to collect the unpaid taxes.

Anyone who rents or leases property for more than 14 days is subject to paying taxes to the IRS. Add to the equation the fact that there are different rules on IRS tax liability based on how the property is rented and it becomes obvious that homeowners should seek the advice of an expert to prevent trouble with the IRS.

Obviously, in some cases renting property can result in a tax liability to the IRS that results in greater financial problems than before a homeowner considered leasing.

Among the different IRS tax rules that apply to rental property income are:

• Whether the property is used both for personal and rental purposes
• Whether the residence is being rented strictly for profit as opposed to assisting the homeowner in paying a mortgage

If you have questions about this or any other IRS tax related issue, please contact Florida Tax Attorney Mary E. King for your free, confidential IRS tax help consultation.

IRS Wage Garnishment Can Be Minimized.

Sarasota taxpayers beware: The Internal Revenue Service (IRS) will claim any back taxes and fines they determine are due to the agency. Sarasota tax attorney, Mary E. King, warns that the IRS will not hesitate to take money from a taxpayer’s paycheck if they determine that they are due money.
Wage garnishments imposed by the IRS can total up to 25 percent of a taxpayer’s earnings for each pay period. In today’s struggling economy, the loss of a quarter of a wage-earner’s salary can have a devastating impact on their budget.
Because IRS tax fines tend to snowball, a taxpayer may end up paying more than they anticipated. The impact that those fines can have on wages garnished from their paychecks can be monumental, which is why contacting a local  IRS tax attorney in Sarasota early is so important. Using a knowledgeable source will not only help prepare a taxpayer for the pain of wage garnishment, but can also work to make sure that the taxpayer only pays the minimum amount that he has to.

The average taxpayers is unfamiliar with the labyrinth of IRS tax laws that allows the IRS to garnish a maximum when it comes to an employee’s earnings. That’s why it is essential to retain the services of a local Sarasota tax attorney who is equally educated about IRS tax laws.
Attorney Mary E. King can help in structuring settlements with the IRS that are more client friendly because they will not have such a major impact on a taxpayer’s budget. She also offered one other suggestion about the importance of using a local Sarasota IRS tax attorney and that is she urges those dealing with the IRS not to wait until their problems with the agency become unmanageable. She said waiting too late in selecting a skilled Sarasota IRS tax attorney may result in increased penalties and fines imposed by the IRS.

Sarasota IRS Tax Attorney Mary E. King, can help you with your IRS Tax problems

Prepare for Back Taxes by Using An Expert Sarasota Tax Attorney

Paying back IRS taxes may cost Florida federal taxpayers more than they realize as a result of IRS fees and tax penalties, interest and other factors, according to Sarasota tax attorney Mary E. King. It’s important taxpayers not only realize that improperly dealing with their IRS tax burdens can cause them more than they might have initially paid the Internal Revenue Service (IRS), but also understand how tax attorneys can help ease their tax burden.
A taxpayer who thinks they can escape the wrath of the IRS by simply paying taxes on a few items they neglected is likely to be in for a very unpleasant surprise. That’s because there are a series of items the IRS can go after that can create a nightmare scenario where taxpayers are concerned.
Sarasota taxpayers who do not know the best solutions in dealing with the IRS can be putting themselves at further risk. She said paying all taxes due to the IRS on time is the best way to prevent the accumulation of tax penalties and interests, thus avoiding IRS tax problems in the first place.
But she adds that a skilled Sarasota IRS tax attorney is invaluable when it comes to sharing their expertise about other issues that include:

• The inability to pay taxes by April 15th, with attorneys available to provide information about how to deal with the situation
  
• Understanding the options in paying tax penalties and interest imposed by the IRS
  
• How tax liens can negatively impact a taxpayer’s financial situation and hurt their ability to secure loans, jobs or credit in the future
  

• The danger or levies imposed on a taxpayer
  
• Steps to take in cases of audits by the IRS
  

Sarasota Tax Attorney Mary E. King advises taxpayers about the best action to take in dealing with the IRS when it comes to back taxes. She added they can also help them avoid not  paying them more than they have to, but also stress by identifying options that will make paying down their IRS tax debt easier.