Recently home values have dropped almost 20%, but at the same time, property tax collections across the United States have gone up a little over 3%, according to the United States Bureau of Economic Analysis.

Our governments both state and local collect more that 400 billion dollars in property taxes annually. It’s the highest it’s ever been. One of the main reasons is that the laws in most states that prevent big tax hikes when real estate values go way up, also prevent big tax drops when values drop.

Delayed appraisals are also what’s keeping taxes up while home prices are dropping. Pennsylvania has some counties that have not done major reappraisals for decades. They are not alone. Elsewhere, home owners must pay taxes on peak values for years before new assessments reflect the dropping prices.

WHAT’S HOLDING YOU BACK?

Taxes are a big expense for all homeowners. Usually at least $3,000 a year. To reduce this large expense, the property owner should review and consider appealing their taxes once a year. While there is no guarantee you will win your appeal, a recent survey indicated that 70% of real estate tax appeals are successful. So if you have a seventy percent chance of winning what’s holding most people back?

Out of sight out of mind. Most real estate tax payments are done by mortgage companies. Since you are not writing that large check each month, you might not feel the sting of the payment directly. Here are some other common reasons people don’t try to reduce their property taxes.

1.The process seems intimidating and they do not know how to appeal.

2.They do not think they will win their appeal. A victim of the You can’t fight City Hall Syndrome.

3.They think their home’s assessed value is below market value and there is no basis for appealing.

4.They do not know that they can appeal on unequal appraisal.

5.They are busy and simply do not want to take the time to put in a appeal to reduce their property taxes.

WHY SHOULD YOU APPEAL?

The typical appeal hearing takes less than an hour. And most property tax appeals are resolved at the informal hearing which is the first step you take in the appeal process. Consider an appeal for a $150,000 house where the property taxes are reduced by 5%. This would reduce the assessed value by $7,500 and the property taxes by $225, based on a 3% tax rate.

YOU HAVE TO TAKE ACTION TO WIN

Three dozen residents in Sandy Springs, Georgia, were fighting a proposed expansion of the local school. They also filed a property tax appeal to get up to a 12% reduction in their property tax. They based their appeal on the increase in school traffic and inconvenience that it caused. Claiming that the before and after school traffic created a nuisance to the neighborhood.

One woman organized an email campaign, asking neighbors who were interested in exploring the traffic situation to lower there property taxes. They went to the County Board of equalization and presented their case. The board members said that they were shocked that there were not more residents there to present their case. The Homeowners who appealed got between a 4 and 12 percent reduction in their tax bills.

SOME STEPS YOU CAN TAKE RIGHT NOW TO GET LOWER PROPERTY TAXES

1.County assessors often use the drive by technique when assessing residential real estate. So you should look for obvious errors in the description of your house in the official records, such as incorrect age, square footage, condition or acreage. If you find a mistake, document it with blueprints, surveys, photographs and inspection reports.

2.Compare the assessed value of your house with the assessments on similar homes in your neighborhood. This is public information and is available at your local property tax assessor’s office.

3.Get a real estate agent or your assessor to give you a list of all the sales within the past 12 months in your neighborhood. Identify three to six homes that are similar to yours and located near your property.

 
You can get lower real estate taxes. One survey showed that only 7% of people ever appeal their real estate taxes. Imagine what it would be like to lower your property taxes and have hundreds even thousands of dollars extra to spend on you and your family. It can happen but you have to take action. Don’t wait. You’ll wait your life away.

You can view a free video right now to get the property tax help you need. If you are serious about saving money then get his easy step by step blueprint of how to save hundreds even thousands of dollars quickly and easily each year. Hit one of the links above and Visit Use today. Don’t wait. You’ll wait your life away.

Why are property tax levels important?

It is important to know how much you can expect to pay for property taxes because this can significantly affect which homes you will be able to afford. Property tax payments are added on top of any mortgage payments you will be expected to pay. If the tax levels are high enough this may push the monthly or quarterly costs for your home above the level that your budget will allow.

Non-payment of taxes can also be an issue. If your taxes go into arrears, meaning that you have not paid them for an extended period of time a municipality can seize your property. This is one reason why some property owners have been forced to give up their residences and income properties and why some homes may be available for sale from municipalities for very reasonable prices.

Which areas pay the most in taxes?

Residents in some US states are paying as much as ten times what residents in other states are paying for their properties. States that are located in the northeastern portion of the United States tend to have rates that are much larger than states located in the Southern United States. The following three states have the highest median or average real estate taxation rates:

New Jersey. Residents paid average taxes of $6,579 in 2009
Connecticut. Residents there paid an average of $4,738 in property taxes in 2009
New Hampshire. Here, residents paid an average of $4,636 in taxes in 2009

Keep in mind that this is just a guideline. A city or town may have tax rates that are much higher or much lower than the state average due to a combination of different factors.

Which areas pay the least in taxes?

As previously stated, the Southern states tend, in general, to pay much lower tax rates than states in the Northeast. Here is a list of the three states that paid the least in taxes on average during the 2009 taxation year. They are:

Louisiana. Residents paid a mere $243 in taxes during the 2009 taxation period.
Alabama. Here, residents paid $398 in property taxes in 2009
West Virginia. Residents of this state paid an average of $464 in property taxes in 2009.

If you are interested in a specific property it is possible to find out what the taxation rates were for that area and that property. You can speak to the realtor who is handling the listing and some municipalities will also have a website where you may be able to go and look up this information.

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What many people do not realize is that, like with income and sales tax, there are a number of ways to reduce the amount of property tax you pay. Here are just a few ways to consider:

Make certain that the assessment on your property is accurate.

Your property’s assessment value is typically determined by the state or local municipality and usually reflects a value lower than the home’s actual market value. Double check the assessment to ensure that it is accurate and up-to-date, since mistakes can be made.

You can usually do this by comparing the assessed value of your home to those of other comparable properties in the area. Also, keep abreast of changing values; some cities are quick to adjust assessments when property values are increasing, but less punctual when values are declining.

Appeal the assessment on your home.

In most towns, over 20 percent of those who appeal their home assessment get a reduction.

If considering an appeal, be sure to first learn how the system works in your area. Call your town assessor to find out what the protocol is in such a case. Also, pull together any documents that show the age and condition of your home. This can include taking pictures of the house, floor plans, and gathering any records of home renovations.

Rezone your property.

In some cases, outdated zoning could lead to higher property taxes. By keeping track of the zoning laws in your area and how they apply to your property, you could get money. However, only consider rezoning if you are a long-term owner because it is a lengthy process and difficult to undo.

If considering pursuing rezoning, first know what kind of property you hold. Zoning laws differ for commercial and residential properties, as well as for undeveloped land. Make sure the zoning laws on your property are up-to-date and reflect the current development on the land.

However, be certain you have the approval of your neighbors before pursuing any kind of rezoning. Any kind of strong opposition from the neighborhood could make it difficult for a request to be approved or, conversely, their support could make the process much easier.

The Lee Law Firms aims to help local residents resolve their tax debts and IRS problems. Their mission is to provide high quality legal representation that assist clients stop wage garnishment, IRS harassment and settle back taxes. The Lee Law Firm tax attorneys have many years of experience in all aspects of Dallas tax debt.

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You will receive a Demand for Payment before you’re served with a Levy Notice. To get help in avoiding a levy, consult a tax lawyer and present proof why the penalties and taxes asked from you were not settled.

The IRS Levy Notice allows you 30 days to ask for a Collection Due Process hearing at the local IRS Office of Appeals. If counseled to do so by your tax lawyer, you must take this request and get ready for the hearing. If the levy is the outcome of an IRS mistake, you’ll still need to go to the hearing to justify the case and give evidence that your taxes were paid and the IRS has, in fact, committed an error. This is an unfortunately common problem, but many people fall prey to unfair wage and property levies when they ignore the IRS Levy Notice.

There are several situations which will prevent the IRS from continuing a levy. Making the IRS Office of Appeals know of these cases is your responsibility. If you’ve filed for bankruptcy, the IRS can’t subject you to a levy. Similarly, if you have settled the unpaid debt before or immediately after the Levy Notice, you shouldn’t be levied. One loophole to avoid an IRS levy that most people are unaware of is the statute of limitations. The statute of limitations stops the IRS from collecting taxes that were assessed more than 10 years ago. You’re exempt from paying penalties and taxes and the levy if the collection period of the tax expired before your IRS Levy Notice was mailed.

You can work out an installment option with the Office of Appeals at the Collection Due Process hearing. Rather than getting your bank account levied or your wages garnished by the IRS, this is indeed a better option.

An IRS levy will go on unless it’s officially released, your debt is settled, or you meet the statute of limitations and the IRS can no longer get those taxes. The IRS will refund your bank fees if your bank account was erroneously levied because of an IRS error. To qualify, you should file for refund within 30 days.

Ignoring a Levy Notice will only worsen your IRS issues. It is better to get help as soon as possible to safeguard your assets.

Find out more on IRS Tax Attorney, Click Here!

For more information on IRS Tax Attorney, please Click Here!

Bank Levy

A bank levy is a one-time levy. You are free to use your account in a normal fashion after the bank freezes the amount required by the levy. The bank is not allowed to hand over your money to the IRS right away. The money is on a holding period for 21 days. Once that holding period is concluded the money is sent to the IRS and is irretrievable; any future deposits can be reached only with additional levy action by the IRS. However, if you do not resolve your outstanding tax debt with the first levy, the IRS may by their discretion levy your bank account again.

Wage Garnishment

Once the IRS becomes unwilling to wait any longer to collect the taxes you owe, they will implement a Wage Garnishment action. The most common types of garnishments are:

• Employee Garnishments

• 1099 Garnishments

• Federal Payment Levy Program (FPLP)

Notices of intent to levy a Wage Garnishment are sent to the employer, i.e. your boss, your hiring contractor, or the U.S. government.

Employee Garnishments

The IRS can demand your employer to withhold a portion of your wages from your paycheck and send it directly to the IRS. Keep in mind; although there is a small exempt amount that cannot be levied, this amount is often not enough to cover regular living expenses.

A garnishment upon wages is considered to be a continuous levy. It is applied only once and remains applicable to all future wages until either it is released by the IRS for cause or the debt is fully paid.

1099 Wage Garnishments

This type of garnishment applies to payments owed to non-salaried subcontractors not on the regular payroll. A garnishment of 1099 wages is a one-time levy as opposed to a continuous levy. The employer is required to hold up to the amount owed to the IRS.

This levy attaches to 100% of the funds not yet paid to the sub-contractor at the time the garnishment is received. The levy does not apply to future 1099 payouts.

Electronic Federal Payment Levy Program (FPLP)

This type of wage garnishment applies to government employees and recipients of Social Security payments. This program electronically levies your federal payments paid through the Department of Treasury; Financial Management Services. Under the FPLP, the government generally withholds 15% of the wages/payments to reduce past due tax liabilities.

It takes longer for the release of this type of garnishment. The levy can remain in effect for several weeks after the IRS agrees to release it due to lengthy government processing.

Releasing a Wage Garnishment

Negotiation with the IRS is required to obtain a wage garnishment release. Possible qualifying reasons for release are:

Setting up an Installment Agreement

Promising to pay the total tax debt immediately

The full amount of the tax debt has been paid

An amended tax return was filed, showing you do not owe the tax

Your monthly expenses exceed your monthly income

The levy was issued due to an IRS processing error

You are behind on your mortgage, rent or medical bills, etc.

The levy inhibits the full collection of the balance due

You Need Qualified Representation

Instant Tax Solutions can represent you in IRS negotiations, resolving your wage garnishment issues, and bringing your tax problems to an end. We have an excellent success rate in the release of wage garnishments. It is very likely we will be able to have the garnishment released before your next paycheck.

If you have received an IRS notice of Intent to Levy, Instant Tax Solutions may be able to prevent the garnishment from happening and avoid further collection action.

Find out more on IRS Tax Attorney, click here.

For more information on IRS Tax Attorney, please click here.

The first, and most important, piece of advice that I can give anybody: File your returns! If you have tax returns for anything that have not been filed, get them filed. The IRS, and generally the states also, are far more concerned about you filing your returns than they are about you paying the tax when you file. The reason for this is because if you don’t file, they don’t know what to bill you for. Because of this, they set the penalties for failure to file at the highest penalty rate of anything. As an example, the IRS penalty for failure to file a return is 5% per month it’s overdue, whereas the penalty to failure to pay the tax is only one half of one percent per month it’s overdue.

Secondly, don’t ignore notices from the IRS. As a taxpayer, you have have certain rights afforded you by statute and regulation. This often includes some sort of appeals action on any intention of the IRS to levy you. Probably the most important thing to look for in your mailbox is a a notice titled “Final Notice of Intent to Levy.” Note that it will say “Final Notice”, not just “Notice.” In the upper right or lower right corner of the notice will be a form letter number, which will say “Letter 1058.” If it says CP-504, then this is more of an initial notice, not the final notice. After issuance of the “Final Notice of Intent to Levy”, you have 30 days in which to request appeals consideration of the levy action. The final notice will usually include the appeal request form, which is IRS Form 12153. Fill this out and submit it within 30 days of receiving your Letter 1058!

Filing for an appeal will usually buy you 30-60 days of time. This can allow you to do many things. Perhaps in that time you will have rearranged your finances such that you can afford to propose a monthly payment plan to the IRS, called an Installment Agreement. Perhaps in that time you could have applied for and received a loan which you could then use to pay off the IRS, since the IRS penalty and interest rates are likely going to be higher than just about any loan you get. Perhaps during that time you were able to borrow the money from friends or family, or taken an advance at your job. Perhaps it will give yu the time to evaluate your situation fully to see if you qualify for an Offer in Compromise, and allow you to file for a tax settlement.

It is important to note that if you have a pending Installment Agreement proposal in place, or have filed a legitimate, complete, and accurate request for an Offer in Compromise, the IRS cannot take aggressive enforced collections action, including levy action. You cannot make a frivolous request for an Installment Agreement or settlement offer simply for the sake of buying time, but if it’s a legitimate proposal, then the IRS cannot garnish your wages, seize your bank accounts, or come take your property.

Here’s a summary of the amount of time you can buy with certain actions:

Request Collections Due Process Appeal: 30 days to 3 months
Request Installment Agreement: 30 days to 4 months
Request Offer in Compromise: 4 to 6 months
Request Collections Appeal Process hearing: 30 days to 4 months
Request Taxpayer Advocate Assistance: 30 to 90 days

You can actually go through each of these processes, which could allow you to forestall levy action by as much as a year and a half if the IRS administrative processes are backed up enough, which they tend to be. This much time gives you ample opportunity to figure out what you’re going to do to address your financial matters.

If you have a Revenue Officer assigned to you, the Revenue Officer will generally make requests for documents from you relating to your finances. Meeting deadlines provided by the Revenue Officer, and asking for additional time if needed, is one another way to delay levy action. Revenue Officers will commonly issue a Form 9297, Summary of Taxpayer Contact, with requested information and deadlines for providing it. For the most part, most Revenue Officers will not levy your accounts if they feel you’re “playing ball.” However, if they feel that you’re severely jerking them around, they won’t hesitate to issue a levy.

Lastly, if you have exhausted all other avenues to protect yourself and levy action is certainly coming your way, you can take steps to minimize the impact of the levy. The IRS can levy many potential targets, such as investment accounts, bank accounts, paychecks, even your physical cash register if you run a business that has one. Bank accounts tend to be the most common target.

If your bank receives a levy notice from the IRS, they are required to hold any funds in the account on the date of the levy and then forward those monies to the IRS after 21 days. This provides two things of note. One, it gives you 21 days to attempt to get the levy released. While the majority of cases by no means end up with the levy released, it can be more common than you might think, especially if third parties are affected (e.g., you can’t issue employee paychecks because the IRS seized your payroll account). Second, bank account levies are generally issued as a one-time event. In other words, if you have $4,000 in the account on the date of the levy, then that’s how much the IRS is going to get. If you deposit $2,000 more the following day, that money is NOT subject to the levy. If you know that a levy is likely to be coming, it can be a good idea to keep your bank balances low by delaying deposits until the the levy hits. Also, if you can avoid it, don’t write checks on the account that might bounce if you know that a levy is inevitable.

I hope that this article has been helpful and that the industry insider tips provided here help you avoid the stress and hassle of dealing with IRS levies.

Do you owe back taxes to the IRS? Are you overwhelmed by tax debt and perhaps even under threat of levy or garnishment? Tired of all the notices in your mailbox? Is unemployment a reality? YOU CAN NOW HELP YOURSELF!