The North Carolina Bankruptcy Information Blog

We know what you’re thinking.

Another stressful tax season has officially come and gone, and you’re either expecting a well-deserved refund or you owe an obligatory amount to the Internal Revenue Service.

Regardless, we understand you’d rather not think about (or, at least read about) anything regarding taxes, tax time, or the financial implications of this taxing period. But, trust us, it’s worth taking a gander at the following, as the end of tax season means the beginning of many a tax scam that might cost you more money (and time) than any IRS tab.

The Internal Revenue Service has now issued a statement warning average Americans just like you about how to spot and solve identity theft issues that stem from your recent tax filing.…

‘Tis the season for tax returns…and for many, tax refunds. So, if you’re one of the lucky Americans who is expecting money back from the Internal Revenue Service this year, you may also be aware of refund anticipation loans (also known as RALs). These tax time advances are being offered by some tax-preparation services as part of their seasonal packages.  And while getting what’s yours as soon as you can, especially from the IRS in tough economic times, can be appealing, there are various pitfalls to these refund anticipation checks, and reasons the federal government is trying to help you avoid them.…

Ah, tax season: the oft-dreaded time when we’re all forced to assess a previous year’s worth of financial doings, pay back deficiencies and seek deductions. But this year’s tax season may become a bit more taxing for some as industry watchdogs are finding that the Internal Revenue Service is further targeting struggling taxpayers with aggressive tactics meant to retrieve all that is owed from already economy-ravaged Americans.

As the Associated Press reported this month, “the Internal Revenue Service is tormenting struggling taxpayers in the midst of a slumping economy by increasing the number of liens the agency has filed against people who owe back taxes.…

As we’re all now aware, this decade’s economic downturn has dealt, and unfortunately continues to deal, a significant blow to the budgets of many American families, leaving millions in debt, facing foreclosure, and sometimes looking to any means necessary to break even, much less get back on a financially-healthy course. And so, once again, we’re finding that the beginnings of tax season can also yield it’s own set of challenges for some cash-strapped citizens as many turn to plastic to pay back what they owe the IRS.

Unfortunately, with the advent of online filings, paying your taxes with a credit card has never been simpler.…

While many people consider it common knowledge, the last-minute fear before deciding to file bankruptcy could end up costing you even more come retirement. Turns out, that as the recession deepens, more people are looking toward their long-term savings for an influx of cash to help stay afloat.

Well, don’t ever be one of those people. Typically, what ends up happening is that you wind up without retirement money and still filing bankruptcy. We’ve seen it happen. And it’s hard to watch.

An article on USAToday.com pointed to figures that show a record number of people in the second quarter of this year used their retirement accounts to help stave off a financial problem.…

While it is well known that the United States is a nation of givers—with an estimated $227.41 billion sent to charitable organizations in 2009—what might be surprising is what groups are actually giving the most.

According to a recent New York Times article entitled The Charitable Giving Divide, “For decades, surveys have shown that upper-income Americans don’t give away as much of their money as they might and are particularly undistinguished as givers when compared with the poor, who are strikingly generous. A number of other studies have shown that lower-income Americans give proportionally more of their incomes to charity than do upper-income Americans.…

A typical tax time stressor is the idea of an IRS audit, during which the IRS reviews your previous year’s tax return for discrepancies. Similarly, the IRS can do the same in the case of bankruptcy, assessing the information offered during your bankruptcy case.

While many bankruptcy bound individuals might recoil at the idea of setting themselves up for a second potential audit, it is important not to panic or consider this possible evaluation as a deterrent to heading down the road of removing or reducing your debts through bankruptcy.

In actuality, the chances of an audit are extremely low; and, if you are audited, your liability is easily minimized (or rendered non-existent) by maintaining as much transparency as possible during the bankruptcy process; and by not willfully withholding important details about your particular bankruptcy case.…

If you couldn’t tell by the utter onslaught of tax preparation service ads and the sudden presence of temporary cubicles in that once abandoned retail space at the corner of your favorite strip mall, let us be the first to remind you that it’s tax season.

We take interest in this time of year because tax returns can mean one of two things to our readers: more debt or more money. Since we are all about helping you figure out what to do with your debt, we hope this post will educate you regarding what tax season can mean for your financial well-being.

There are number of tax deductions out there that get ignored by a lot of families.…

It’s tax season. Which means that for most people, it’s time to realize just how much we give to Uncle Sam every year. For some, the prospect of a refund provides a glimmer of hope that some new money is coming in soon to pay off debts.

Just a quick little note on your tax dollars before we get into the meat of this post: it is actually better to owe just a little bit of money after filing because that means that you have used more of our your own money throughout the year instead of giving it all to the government.…

Planning for your retirement early is extremely important, yet appreciating this point can be difficult for people who aren’t looking to retire soon. It’s even harder to remember the importance of planning for retirement when it remains years or even decades off…all while the harsh realities of the economy are here today. Credit card companies compound the problem, advertising instant gratification while minimizing focus on long term financial stability. As the credit markets tighten, it’s tough to resist cutting back on retirement contributions. For those with a significant nest egg, it’s very tempting to cash out now and rebuild later.

Unfortunately, many of us approach bankruptcy as a last resort, an option to be avoided at all costs in the interest of our future financial soundness.…