Owing back taxes is a stressful experience for many. Unlike other debt, you can’t include back taxes in bankruptcy. Nor will it roll off your credit report after seven years. Eventually, the Internal Revenue Service will start to take legal steps to get their money.
When you don’t pay your taxes when they are due, the IRS can:
- Charge penalties and interest, for instance, interest is added daily to the amount owed. If ignored long enough, interest can be up to 100% of the total amount owed
- A federal tax lien on your property which can become a lien if taxes owed aren’t paid
- A federal tax levy on your property which will allow the IRS to seize property like your home, to pay for back taxes that are owed.
If you don’t file your taxes, the IRS can penalize you for a “failure to file.” So even if you can’t pay your taxes, it’s best to file and make arrangements than to have another penalty piled on top of that. This may seem overwhelming to anyone if you are behind on filing your taxes or owe a lot of money.
What can you do?
The good news is you can make payment arrangements, and in some cases, you may qualify for the Fresh Start Initiative which will allow you to settle your IRS debt for less than what you owe.
The key is to find a company that can assist you in filing the right paperwork to help you down the road of recovering from IRS debt. These businesses can work on your behalf to make sure you’re getting the best payment options and settlement.
It can be overwhelming but the longer you wait to take care of your taxes, the worse the debt piles up. Give Civil Tax Relief a call right now so you can put your IRS debt woes behind you.