Five Things To Know about Paying Your Tax Debt

taxes

Paying back a debt can be a lengthy and expensive process. Handling a tax debt, however, requires careful attention. Although there are a number of specific concerns that may accompany your delinquent tax balance, there are a handful of critical items to keep in mind:

  1. The best thing you can do for your taxes – whether or not a problem already exists – is to make sure you’re filing and paying what’s due, on time. This will help reduce the chance for future issues and demonstrates to the IRS that you’re a conscientious taxpayer. While perception isn’t everything, it’s definitely something you should consider when it comes to your taxes.
  2. Any tax debt should be paid. Quickly. The IRS adds penalties and interest charges to your tax debt on a monthly basis, which can rapidly inflate your total. The probability of you getting these additional fees waived is low. Your only surefire solution is to get the entire balance paid as fast as you can. Any amount that remains unpaid continues to accrue extra charges.
  3. Don’t underestimate the IRS. You might be under the impression that you can simply snub them, or fly under the radar to avoid detection. You may believe they can’t hold you responsible for that tax bill if they can’t find you. The reality is that the IRS has become more sophisticated over the years in its ability to locate missing, delinquent taxpayers. Additionally, the IRS is now compelled to use private collection agencies when they’re unable to track you down. When they do catch up with you, don’t expect any leniency for dodging your tax debt.
  4. Understand just what’s in store for your finances, should you choose to not pay your back taxes. For starters, tax debts above a certain threshold can trigger a tax lien. This is essentially the IRS staking a claim on anything you owe or come into possession of for the life of your tax debt. It will also drive down your credit score, as banks and creditors will become aware of your delinquent tax balance. Next, the IRS has no problem taking what you owe directly from your bank account or your paychecks. Make no mistake, if you don’t resolve your tax debt, they have the power to take the money from you in a number of financially-crushing ways.
  5. You should speak with a licensed tax professional regarding your tax debt. While you may not ultimately enlist his or her services, it’s important to understand your resolution options and your rights as a taxpayer. A licensed tax professional can provide you with this information, and can also obtain a formal, legal resolution for you by dealing with the IRS on your behalf. Getting the right tax resolution requires a degree of experience and skill; essential traits found in any licensed tax professional.

Tax Defense Network, LLC is a nationwide tax resolution company that assists clients with every level of IRS and state collection action. We have a staff of licensed tax professionals, headquartered in Jacksonville, FL who are at your disposal. To learn more about Tax Defense Network’s A+ rating with the Better Business Bureau, our Tax Defense Network Foundation, nationwide network of licensed tax professionals, and the company’s many years of helping taxpayers just like you, please visit: http://www.taxdefensenetwork.com/


		

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