If you have failed to pay federal income or business taxes, you may have received a notice from the IRS. Failure to respond to such a notice or pay your taxes in full could result in several legal issues. In the event that you have failed to file a tax return at all, you could face a failure to file penalty.
If you merely have an unpaid balance, the IRS will add interest to that balance
until it is paid in full. Should you be unable to pay your balance in full, you
may ask for an installment plan or a hardship waiver. However, if you have
intentionally failed to pay taxes owed, you could face a lien on your property
or possible jail time.
If you are disputing the amount that you owe the IRS, it may be a good idea to
hire a tax attorney to represent you. If you insist on doing otherwise and you
let your emotions get the best of you, the audit may be expanded and other
actions may be taken against you. An attorney will look at the facts in the
case and negotiate in good faith based on those facts.
In many cases, an attorney may be able to help you reduce the amount owed or
get fees and penalties waived. This may make it easier to pay what you owe and
have liens released if any exist on your home, car or business.