Find the Best Tax Relief in Beaver Dam, WI

Common tax problems in Beaver Dam

Beaver Dam residents experience a variety of tax problems at the federal and state levels. Some of the most common include:

• IRS liens and levies: If you fall behind on your taxes, the IRS may pursue property liens and levies. A federal tax lien is a claim against your property. A levy is a seizure of your assets. Tax relief can help you remove liens and avoid levies.
• Wage garnishment: Wage garnishment involves the government taking money directly out of your paycheck to pay down your tax debts.
• Back taxes: The IRS doesn’t forget about the money you owe. Taxes you owe from previous years accrue interest and penalties, making your debt even steeper. Many Wisconsin residents turn to tax relief when they owe back taxes and need help getting back in control of their finances.
• Income tax debt: The individual income tax rate in Wisconsin ranges from 3.86% to 7.65%, depending on your marital status and income. If you do not pay taxes on your income, the state of Wisconsin may pursue bank levies or tax warrants.
• Payroll tax debt: Employers are responsible for submitting payroll taxes based on their employees' wages and salaries. Tax relief programs help employers that have not paid payroll taxes with tax problems.

How to get tax relief in Beaver Dam

Depending on your financial situation and how much you owe, Wisconsin residents may qualify for several different tax relief programs:

• IRS installment agreement: An IRS installment agreement is a payment plan that allows the taxpayer to pay down their taxes in predetermined installments. The IRS accepts many different payment methods, including electronic payments and checks.
• Offer in compromise: An offer in compromise is a deal with the IRS to settle your debt for less than you owe. Once you make an offer, the IRS looks into your ability to pay, income, expenses and assets to determine your eligibility. In most cases, the IRS doesn’t settle unless it doesn’t expect ever to get everything you owe.
• Penalty abatement: Penalty abatement waives penalties for failing to file or failing to pay on time under certain conditions, like if you have been penalty-free for the last three tax years.

Beaver Dam tax relief FAQ

How does tax relief work?

Tax relief programs help make your tax debt more manageable in order to bring you into compliance with federal and local tax authorities. With tax relief, you may be able to pay off your tax debt in installments or even lower the amount you owe.

How much does tax relief cost in Beaver Dam?

Tax relief can cost anywhere from $1,000 to $7,000. The cost of these services depends on what kind of specialty services you need and how much you owe. There are also setup fees and consultation fees to consider. Tax relief companies charge based on the amount of time your case takes, how much you owe or a flat fee.

How do I check if I owe state taxes in Wisconsin?

Check with the Wisconsin Department of Revenue if you're not sure about your current standing with the state.

Can you negotiate with the IRS to reduce tax debt?

Yes, you can negotiate with the IRS to reduce tax debt, but it’s not easy. The IRS usually only accept an offer in compromise when it believes your settlement is as much as it can expect to get.

Can you pay Wisconsin taxes with a credit card?

Yes, Wisconsin residents can pay their taxes using a credit card. For more information about paying local property taxes, visit the City of Beaver Dam website.

What is the punishment for not paying taxes in Wisconsin?

The consequences of not paying your taxes in Wisconsin depend on how much you owe, how much you make and your tax debt history. First-time offenses may only result in additional interest and penalties. However, repeat offenses and high debt could result in liens, levies and, in cases of tax fraud, jail time.

Are tax relief companies in Beaver Dam legitimate?

Yes, many honest and transparent tax relief companies operate in Beaver Dam and throughout Wisconsin. Unfortunately, scammers like to take advantage of people in vulnerable financial situations, so it is essential to be aware of the signs of a tax relief scam.