If you find yourself struggling with unpaid taxes, it’s important to seek help as soon as possible to prevent further penalties and possible legal action.
One option is to reach out to the IRS, as they may be able to set up a payment plan or negotiate a settlement.
Alternatively, tax professionals such as enrolled agents or certified public accountants can assist with tax debt resolution and provide guidance on maximizing deductions to reduce future tax liabilities.
It’s important to remember that ignoring unpaid taxes can have serious consequences, including wage garnishment, property liens, or even jail time.
Don’t let unpaid taxes overwhelm you – seek help and take steps towards resolving your tax debt.
What Are Delinquent Taxes?
Delinquent taxes refer to unpaid taxes that a taxpayer owes to the Internal Revenue Service (IRS) or the state government.
These are taxes that are not paid by the due date or filing date. When a tax debt is unpaid, the IRS imposes penalties and interest on the taxes owed.
The penalty is usually a percentage of the unpaid tax balance and compounds daily, making it important to pay any delinquent taxes as soon as possible.
Over time, interest charges and penalties may add up to a significant amount, and the IRS can place a tax lien on the taxpayer’s property as a result.
The lien gives the IRS a legal claim to the taxpayer’s assets until the taxes are paid off. It is important to file tax returns and pay taxes owed on time to avoid delinquent taxes and penalties.
What Will Happen If You Don’t Address Your Unpaid Taxes?
If as a taxpayer, you avoid filing your taxes or fail to pay your taxes, then it can result in serious consequences.
The IRS could send you letters asking for payment, assessing penalties and interest, and even filing a tax lien on your property.
If you ignore these requests and fail to address your back taxes, the IRS can resort to taking legal action against you, including wage garnishment, seizure of assets or bank accounts, and even criminal prosecution in extreme cases.
Penalties and interest accrue over time, so the longer you delay paying your back taxes, the more you will owe the IRS. If you owe the IRS back taxes, then it is important to address it before it’s too late.
Tax relief programs are available for taxpayers who can’t afford to pay their debts in full, so it is crucial to explore your options and take steps toward settling your tax debt.
How Long Can The IRS Collect Back Taxes?
The IRS can collect back taxes for up to ten years from the date that the tax bill was assessed.
If a taxpayer has unpaid tax debt, then the IRS may issue a federal tax lien against them. This lien is a legal claim against the taxpayer’s property and assets, and it can severely impact their credit score.
However, taxpayers have some options for resolving their unpaid taxes.
They can negotiate a payment plan with the IRS, which allows them to make monthly payments until they have paid off their taxes in full.
Alternatively, they can seek tax relief through an offer in compromise, which is a settlement agreement with the IRS that allows them to pay less than the full amount owed.
It’s important to work with a tax professional or IRS agent to determine the best course of action for resolving any back taxes owed.
What Is Tax Relief?
Tax relief refers to any measure that helps taxpayers reduce their tax liability, tax burden, or tax bill.
The IRS offers various types of tax relief to help taxpayers manage their tax debt, such as tax credits, installment agreements, and offers in compromise.
Taxpayers who owe back taxes can also benefit from tax relief programs, such as penalty abatement, innocent spouse relief, and currently not collectible status.
Ultimately, tax relief helps individuals and businesses comply with their tax obligations, avoid penalties and interest charges, and alleviate financial stress associated with unpaid taxes.
By seeking tax relief options, taxpayers can stay on good terms with the IRS while also preserving their financial well-being.
Five Common Tax Relief Options
Taxpayers can find themselves in a difficult situation when they owe back taxes to the IRS. However, there are tax relief options available to assist taxpayers with their tax debt.
Here are 5 common tax relief options that you can take advantage of:
- Pay in full – Once you file your back taxes you will have the option to pay the debt in full. If you are able to afford it, this is the easiest and fastest way to take care of the debt.
- Payment plans – are a common tax relief option where the taxpayer can make monthly payments towards their tax bill.
- Innocent Spouse Relief – This option is available to taxpayers who are not responsible for their spouse’s tax debt.
- Offer in Compromise – which allows the taxpayer to settle their tax debt for a smaller amount than what they owe. The IRS may also waive penalties or apply the penalty relief program to the taxpayer’s account.
- Hire a professional – An IRS tax professional will be able to check your past returns and look for any errors or missed deductions / credits that could lower the total amount owed
Before looking into debt relief options you should file all of your past due tax returns. Often when taxpayers get behind they stop filing completely. It is essential to file all past tax returns in order to establish the total tax owed.
Additionally, taxpayers can obtain a tax lien release or negotiate payment terms with the IRS. In cases of financial hardship, the IRS offers various tax help programs.
It is essential to pay your tax bill in full or explore these relief options before getting the IRS involved in collections. If you get the IRS on your side, they may accept your offer and ease your hardship.
When To Consider The Fresh Start Initiative
If you’re a taxpayer struggling to settle your tax debt, it may be time to consider the fresh start initiative program.
A fresh start program is a tax relief program offered by the IRS that helps taxpayers resolve their outstanding tax debts.
The program provides various options such as installment agreements, offers in compromise, and penalty abatement that enable a taxpayer to repay their tax debt over time.
Furthermore, taxpayers who face financial hardship, such as a job loss or illness, can also receive significant tax relief through the program.
If you find yourself in a similar situation where you’re unable to repay your taxes, it’s worth exploring fresh start program options to alleviate tax-related stress and start fresh with a clean slate.
Owe The IRS And Not Sure What To Do? We Can Help
Many American taxpayers find themselves in a precarious situation when they owe the IRS money.
The penalties for failing to pay taxes can quickly add up, resulting in a delinquent tax debt that can feel overwhelming. However, taxpayers do not have to face the IRS alone.
Tax relief companies are experts are available to help individuals navigate the various options for resolving their IRS payment issues, including an installment agreement, an offer in compromise, or other strategies for reducing penalties and interest.
By working with a tax professional, individuals can take steps to address their delinquent tax debt and get tax debt relief to prevent further damage to their financial health.
If you owe the IRS and are unsure of what to do, don’t wait – give us a call today at 877-860-3731 for a free 15 minute consultation with one of our tax professionals.