Delinquent Taxes Keeping You Awake at Night?
Delinquent taxes can be a real pain in the you-know-what, but we’ve got the perfect prescription for tax relief.
Less Than 2 Minutes Could Save You Thousands.
What Are Delinquent Taxes?
Delinquent taxes are essentially taxes owed to the IRS that you have not paid. Your taxes are considered delinquent once you miss the filing and/or payment deadline. Ignoring your unpaid taxes can have severe consequences. This includes not only penalties and interest added to your original tax debt, but also more aggressive collection actions. The IRS can garnish your wages, or place a tax lien against your personal property and assets.
How to Handle a Delinquent Tax Notice
If you fail to pay your taxes when they are due, the IRS will begin the collections process. This starts with a bill for the amount that is past due. Next, the IRS will follow up with a delinquent tax notice. The notice will include the total tax due, including unpaid taxes, penalties, and any interest that has accrued since the initial bill. Until the balance is paid, interest will continue to compound daily and monthly penalties will be assessed. To avoid additional penalties and interest, it is imperative that you deal with the notice as soon as possible. Here are the most common options for addressing your delinquent tax issue.
File and Pay Your Taxes
If you submit your tax return and pay your taxes within eight weeks of receiving the notice, no further action is needed.
Installment Agreement
When you are unable to pay your tax balance in full, an IRS installment agreement can help. It’s basically a payment plan that is spread out over several months or years.
Partial Payment Plan
In certain cases, the IRS may agree to a partial payment plan. This allows you to pay less than the full amount owed over the course of the collection period.
Offer in Compromise
Through Offer in Compromise, you may settle your tax debt for less than you owe. Typically, you’ll pay the new amount in a lump sum, but the IRS may agree to periodic payments, as well.
Currently Not Collectible
If you are unable to pay anything due to extreme financial hardship, the IRS may temporarily delay the collection of your tax debt by declaring you as currently not collectible.
At Tax Defense Network, our tax professionals will work with you to find the best options for tackling your delinquent taxes. Schedule a free consultation today and take the first step in getting the IRS off your back!