NOT paying back taxes is one of the worst errors that taxpayers make. For many Americans, especially those who are self-employed or have various sources of income, this is a typical issue. It can be tempting to overlook a tax debt in the hopes that it would go away, but this is a bad idea that will only make things worse.
We’ll go over the repercussions of putting off paying back taxes in this blog post, as well as what you can do to fix the situation.
The Effects of Not Paying Back Taxes
The repercussions of avoiding unpaid taxes are many. You will pay interest and penalties on the amount you owe, which is the first and most noticeable effect. It will be increasingly challenging to pay off your debt as interest and penalties mount the longer you delay making payments. Penalties and interest can double the amount owed, if very short order.
Additionally, the IRS has the authority to place liens and levies on your belongings, such as your money, house, automobile, and bank accounts. This might make it very difficult to get credit, sell your property, or access your money. Imagine having the funds in your bank account frozen and then seized – your situation just went from bad to worse.
You may experience credit score harm due to IRS debt, which will make it more difficult for you to be approved for loans, credit cards, and other financial goods.
How to Handle Back Tax Problems
It’s crucial to take action as soon as you can if you owe past taxes. The situation will get worse the longer you wait. The following actions can help you overcome your back tax issues:
Consult a professional; do not approach the IRS on your own. This is comparable to going to court without legal representation. In some circumstances, you may be able to lower the amount you owe the IRS, but only a tax resolution specialist can assist you through the complex world of dealing with the IRS. Consider hiring a CPA, Enrolled Agent, or an attorney who specializes in tax resolution if you need assistance deciding how to proceed or negotiating with the IRS.
There are several alternatives to resolve your back taxes when working with a Tax Resolution professional organization like ours, so we can assist you. The good news is that the IRS offers several debt setlement options, such as the Fresh Start Initiative, and is typically ready to setle with taxpayers who can demonstrate that they lack the resources to pay the IRS in full.
It is crucial to take action as soon as you can to take care of any unpaid taxes you owe. For individuals who are unable to cover their entire tax bill, the IRS provides payment plans and other choices. You may fix your back tax concerns and avert future troubles by engaging with a tax resolution specialist.
Reach out to our company and we’ll set up a free consultation if you require a tax resolution specialist that is experienced and adept at navigating the IRS maze.
Free, private consultation to go through your choices and help you find a long-term solution to your tax
issue. Visit us at www.cotslaw.com.
