Thursday, October 15, 2015

What Happens When Taxes Go Unpaid?

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.

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