Tax Debt

Tax Debt – Things You Should Know When You Owe the IRS Money

For those of you who happen not to be seasoned tax professionals, dealing with the IRS can be fairly intimidating. Even if you know what you’re doing and have done nothing wrong, it can still be an intimidating experience. The less you understand about the workings of the IRS, the more intimidated you may feel. If you find yourself owing tax debt to the IRS, whether intentional or not, it’s important to resolve things as quickly as possible. When you owe the IRS, no amount of burying your head in the sand will help because the problem will not go away by itself. When you owe money, the IRS will relentlessly pursue you until your debts have been paid. With that said, here’s a look at a few things you should know about tax debt, when you owe the IRS money.

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The IRS do not want your case to go to trial

Though they would have you believe otherwise, in reality the IRS would much rather work with you to settle your tax debt directly, rather than having it go to tax court. You see, taking cases to trial of course costs money, plus it wastes time, and as the saying goes ‘time is money’. Because of this, more often than not, the IRS would much rather work with you and come to some arrangement where you pay your debts and settle your case directly. How they do this will of course depend on many factors. For example they may request a lump sum, or they may instead figure out a payment plan with you to help you pay off your debts that way.

You should never ignore IRS notices

As mentioned, when it comes to owing IRS tax debt, ignorance is most certainly not bliss. If you receive a notice from the IRS, stating that you owe them money, you should address it as soon as possible. Ignoring notices from the IRS is a recipe for disaster and will likely result in you ending up in even more trouble than you were beforehand.

The IRS can come after you in many ways

Being in debt to the IRS is not ideal. The IRS has a number of weapons at their disposal and they can come after you in a whole variety of different ways. Just to emphasize how relentless the IRS can be when it comes to unpaid tax debt, they can: invoke an IRS tax levy on wages, invoke IRS tax levies on bank accounts, hire private debt collection firms, seize your assets and sell them at auction, shut down your business, bring criminal proceedings against you, hit you with hefty interest payments and penalties, and much more besides. Needless to say, the aforementioned tactics employed by the IRS can have severe consequences on your personal and professional life, so again, it is best to stay out of tax debt, or to settle your unpaid debts, as quickly as you possibly can.

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You should hire professional tax services to cover your back

Whether you owe the IRS or not, it is always recommended that individuals and business owners hire tax experts to handle their taxes, due to the fact that the processes are so complex. If you do happen to owe the IRS tax debt however, make sure you hire our professional tax services as soon as possible. Now, you may be hesitant because on paper this is yet another expense, but believe us, it is well worth doing. Hiring professional tax experts to help you handle your tax debt is very beneficial as they can offer you help and advice on what to do next, plus they can potentially help get you out of very sticky situations in the process. Our experts have handled cases like yours numerous times, and we know how everything works like the backs of our hands. We will even tell you how to dress, what to say, how to act, what to do, and how to reach the best possible agreement for both parties.

You must have your rights explained to you during an IRS interview

If you are interviewed by the IRS as a result of them deeming that you owe them money, unpaid tax debt, it’s important that you know your rights. You of course have the right to be treated in a courteous and professional manner, and you also have the right to be represented fairly. Again, this is where our professional tax services prove to be so helpful.

You have the right to appeal

When it comes to tax debt, it’s important to understand that, legally, the IRS cannot seize your assets, or levy your bank account, without providing you with written notice of what is happening, as well as the opportunity to appeal. By law, you can legally take the IRS to court, where they, by law, will be unable to seize any assets, or finances, from you until the judge has reached a verdict. Obviously the IRS will not tell you all of this because they would literally be telling you what to do to make life harder for them. Our tax expert however, knows the ins and outs of how tax debts work so we can walk you through the appeal process every step of the way.

You do have different options when you owe tax debt to the IRS

Finally, before we wrap things up, the last thing you need to realize is that you do have different options when you owe tax debt to the IRS. Now, in the IRS’ eyes, it would be best if you simply paid, in full, what you owe. If this is a relatively small amount, or if you can realistically afford to pay without it having a negative knock-on effect on you, or your business, then you may wish to simply pay in full and that will be that. Alternatively however, you can figure out payment plans with the IRS, where you pay a certain amount off, each month, until the debt has been paid. You can also file for bankruptcy, or negotiate an Offer in Compromise, where the IRS may be willing to work out some kind of deal with you. Again, our professional tax services and experts will be able to offer you help and advice, so rest assured, you most certainly are not alone.

Contact us today at 877-788-2937 for a free confidential evaluation.