Have you been receiving letters from the IRS demanding payment for past-due tax bills? Do you have a massive tax bill that will be due soon, but you have no idea how you can pay it?
If you’re dealing with challenging financial circumstances and need IRS tax debt relief, the good news is there are ways you can get help. IRS tax debt relief program experts like Alleviate Tax can help you get set up with one of the many forms of assistance the IRS makes available to taxpayers who fall behind on their tax liabilities.
Simply put, tax relief help can alleviate your tax burden and get you back on track with the IRS, so you no longer have to worry about when or where the IRS will take your hard-earned money from. But what would happen if you tried to ignore your tax debt instead? And what are some of the options for dealing with the IRS? Let’s cover the most essential considerations surrounding IRS tax debt relief.
Common Reasons Why People Have Tax Debt Issues
To start, what are some of the common reasons people find themselves in tax debt? It’s important to consider the reason for being in tax debt with the IRS because it can impact the type of IRS tax debt relief program you will be eligible for.
Tax debt issues can arise from a variety of circumstances:
- Failure to pay estimated tax payments on time
- Retirement fund early withdrawal penalties
- Tax return preparation mistakes
- Under‐withholding payroll taxes
- Failure to file tax returns
- Gambling winnings
- IRS audits
What Happens If I Don’t Pay My Tax Debt?
If you can’t pay the entire amount of taxes you have due by the due date, the best course of action is to file your return on time still and pay whatever amount you can to avoid higher penalties and interest.
Once you’ve filed your returns on time and paid a portion of the tax payment to the IRS, the next step is to contact the IRS to make arrangements to pay the remaining balance. There are multiple options for repayment available to taxpayers, and the IRS isn’t necessarily inclined to present you with the option best for your financial situation. Tax debt relief program experts like Alleviate Tax can help you determine what tax relief options are available to you before contacting the IRS. Knowing what choices you’re entitled to puts you in a stronger negotiating position with the IRS, so contacting Alleviate Tax is a wise starting point.
What Happens if You Owe the IRS Money and Don’t Pay?
If you decide to simply not pay the tax debt the IRS says you owe, there are legal actions the IRS can take against you to try to collect the entire tax debt. Methods the IRS may use include liens on property, levying of bank accounts, and garnishment of wages. If you’re criminally charged with tax evasion by the IRS, you may even face prison time for not paying your tax debt.
Can You Go to Jail for Not Paying Your Taxes?
Realistically speaking, the frequency of the IRS imposing jail time on taxpayers who have tax debt is low. That said, there is still a chance that if the IRS deems your particular case valuable enough, they can take legal action, and that includes jail time. Mostly these cases are when tax evasion is suspected or huge tax debts are owed.
The safest way to avoid jail time because of tax debt is to reach out to the IRS sooner than later to make arrangements to settle the tax debt in some way. The worst thing to do is simply ignore the debt and remain silent. If you need help dealing with the IRS, Alleviate Tax has a team of experts who can help you every step of the process.
Does the IRS Forgive Tax Debt?
The IRS doesn’t simply forgive tax debt in general. But there are many programs the IRS offers that can significantly reduce your overall tax burden. Through an “offer in compromise,” interest and fees can be reduced and sometimes even the original tax debt can be cut down to a level you can manage.
What to Do if You Owe the IRS a Lot of Money?
When there’s no way you can pay the full tax amount due by the due date, it’s crucial to file your return on time and pay whatever amount you can financially manage. This will help you avoid incurring even higher penalties and interest overall.
Once you’ve filed your returns on time with the IRS, you’ll need to contact them to make arrangements to pay what’s left of the tax debt. IRS Tax debt relief programs like installment agreements and short-term extensions are a possibility. Contacting Alleviate Tax can help you figure out which program you’ll qualify for to alleviate your tax debt.
What Happens if You Don’t File Your Taxes but Don’t Owe Any?
Even if you don’t owe any taxes, if you don’t file them the IRS might charge you a failure-to-pay penalty. This amount can be as much as 0.5% of your unpaid tax balance for every month you haven’t paid on time, up to 25%.
Can You Skip a Year Filing Taxes?
Skipping any years of tax returns can create serious trouble for you with the IRS, as they are within their rights to file a substitute return on your behalf with estimated numbers and no deductions. To avoid this complicated tax scenario, be sure to always file your returns on time even if you can’t pay in full.
Can the IRS Take All of the Money in My Bank Account?
Yes, if the IRS pursues a bank levy to pay your tax debt, it can technically empty out your account overnight. When you receive a letter of intent to levy from the IRS, it’s critical that you contact them immediately or get help from professionals like Alleviate Tax.
What Types of Tax Debt Relief Are Available?
The IRS has a variety of tax debt relief programs that tax debt relief providers like Alleviate Tax can help you with:
- Audit Representation and Tax Preparation Mistake Assistance
- Innocent Spouse Tax Debt Relief
- Separation of Liability Tax Debt Relief
- Equitable Tax Debt Relief
- Currently-Not-Collectible Status Tax Debt Relief
- Federal Tax Lien Relief
- Interest and Penalty Tax Debt Relief
Whatever your tax debt scenario is, Alleviate Tax is here to help you get back on track with the IRS and leave your financial stresses behind. Reach out to one of our tax debt relief specialists today and alleviate your tax debt burdens.