Serious Tax Problems & How to Solve Them
There are a number of serious tax problems facing many Americans today, all stemming from unpaid debts owed to the IRS.
If you have significant tax debt and you’ve ignored the problem, or simply don’t have the money to resolve it, then you are putting yourself at risk.
The IRS uses a variety of increasingly aggressive methods to penalize you and collect the money they claim you owe, including:
No matter what steps have already been taken against you – whether you’ve just received the first notice, or the collection attempts have already begun – if you don’t take action now, your tax problems will only get worse.
Below, we’ll cover each of these common tax problems in greater detail, along with the potential solutions that can be achieved by using a qualified tax professional.
Inability to Pay Your Tax Debt
One of the most common tax problems is simply being unable to pay the taxes that you owe to the IRS. This is a stressful and frustrating situation to be in, and unfortunately it can result in a number of additional problems that will hurt your finances even further.
Solution: Offer in Compromise.
This is a program for those who cannot afford to pay their tax debt in full. With the help of a skilled tax professional to negotiate on your behalf, you may be able to settle your debt for considerably less than what you owe.
Penalties & Interest
From the moment you miss your first tax deadline, you’ll likely start incurring penalties and interest from the IRS. So, if your back taxes have gone unpaid for years, then you’ve likely amassed a much larger tax debt already. And the longer you wait to pay it off, the larger that debt will become.
A wage garnishment allows the IRS to collect money from you without you paying them directly. The IRS will instead contact your employer, who will be obligated by law to deduct funds from your wages
(up to 80% per paycheck) to pay off your debt.
Liens and Levies
A federal tax lien and account levies are additional aggressive actions the IRS will take to penalize you and collect the money you owe without you paying the IRS directly. The tax lien will appear on your credit report, making it nearly impossible for you to obtain a loan for any purpose. Account levies will enable the IRS to take money directly from your financial accounts, including checking, savings or retirement accounts.
Delinquent Payroll Taxes
If you are a business stakeholder who has failed to pay taxes you have withheld from employees’ paychecks, then you may be subject to stiff fines and potentially other charges. The IRS has the right to go after company assets, as well as the business’s owners and officers.
State Tax Problems
Individual states are often even more forceful than the IRS in their collection efforts, and they typically act more quickly too. State tax problems are separate from IRS obligations and will need to be addressed on their own.
Unfiled Tax Returns
Not filing required tax returns can be construed by the IRS as tax evasion, considered a criminal act. This is a very serious matter, punishable by a fine of $10,000 and one year in jail for each year not filed. However, the IRS would much rather get taxpayers back into the system than prosecute the average person who makes a mistake. Regardless of why you have unfiled tax returns, the first step to resolving your tax problem – before the IRS will consider any payment plan or tax settlement offer – is to become compliant by filing all your delinquent tax returns. Although this may seem like an overwhelming task, as a leader in tax relief services, US Tax Shield can help you take control of your tax problems and resolve them once and for all, so you can move forward with your life.
Our highly skilled tax professionals and attorneys specialize in all the tax relief cases listed above, including IRS appeals, offers in compromise, penalty abatement, innocent spouse, wage garnishment releases and many more.
If you have received threatening collection notices, or are already facing action by the IRS, contact US Tax Shield today. We will listen to your problem and determine the best solution for your situation. Our priority is to get the IRS off your back, safeguard your assets, and save you money.
Call us immediately at 1-800-280-0784 for a free 15-minute consultation
with one of our senior tax advisors.