Not Able to Pay Back The Taxes Owed?
Facts Regarding Unpaid Taxes
Unpaid back taxes and not having the ability to pay is a popular thing with the IRS. In a normal year, 19 percent of the individuals in America have back taxes. Since this really is such a common problem, you could be assured that there are various solutions.
The IRS (and many states) will help you setup a payment plan to make sure that they get paid. Usually the IRS would endeavor to collect the highest amount of taxes payable from you with the very least amount of effort, and this is a great thing to bear in mind if you plan on getting your back taxes for lower than the exact amount owed.
The sooner you recognize the issue with your back taxes and take steps to fix the problem, the simpler it would be to settle them with IRS. If your back taxes are unpaid, you could be assured that the IRS will find you and will ultimately take action.
The IRS has an extremely automated process to make individuals pay. Read on to find an extremely brief explanation of the events you could anticipate if steps are not taken to solve unpaid back taxes.
When You Cannot Pay Unpaid Taxes Owed
When you have unpaid taxes and you can’t pay, you’re still required to pay the IRS. For those people who are not able to pay in full, the IRS provides various ways of payment. These methods vary from making monthly payments towards the taxes owed to paying only a small fraction of what is really owed. Based on your financial predicament, the IRS are normally ready to work with you.
Get CP Notices and Assessment Letter
As soon as the IRS declares you have back taxes, it gets you into the automatic programmed notice cycle. These letters would inform you the amount you owe, which include other interest and penalties. The first letter you’ll receive is an evaluation letter which could state the sum of taxes you owe. This letter would then be accompanied by a number of CP notices. There are four notices to look out for.
Get Notice of Federal Tax Lien
As soon as you receive the notice, the IRS would have already encumbered your possessions. A tax lien could tremendously affect your life. The reason for it is to stop you from selling or borrowing against any one of your major possessions.
Receive a Tax Levy
A tax levy is the seizing of property you own. This could be virtually any asset you own with a couple of exceptions. The IRS will remain to seize your property until the tax liability is totally paid back or till you have setup another agreement with them. Based on what they’re seizing, a levy could be called many various names.
Various Kinds Of Tax Levies:
- Bank Account Levy
- Wage Garnishment
- Property Seizure
What If you Owe State Taxes And You Are Unable to Pay Them?
Much like the IRS, most states take the same collection actions against people and businesses, and they as well permit the same resolution methods. Every state has their unique rules and resolution methods to different tax problems. Consult our state tax relief professionals to solve problems with your state taxes now.
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