IRS Tax Problems: What You Need to Know

IRS Tax Problems: What You Need to Know


For most Americans, it’s difficult to understand completely the Internal Revenue Service. This is why many Americans run into IRS tax problems, and these issues might have resulted from sheer ignorance or other personal reasons.

The IRS could be the harshest collection agency out there, but it’s just doing its job and it has provided several options for those with tax delinquencies to get back on their feet.

The IRS will work with people who are upfront about their problems and are willing to resolve their tax problems. There’s always a solution to tax debt problems. Tax professionals can offer help if you feel like the IRS has no way out.

It’s difficult to avoid the IRS and continue to live a normal life when you have unpaid taxes.

Unpaid Taxes.

There are solutions to this tax problem. But you need to consider the amount you owe the IRS, your existing financial condition, and your future financial situation.

You should not ignore any unpaid taxes you have because the IRS, which can be very understanding of the individuals who are struggling with their day-to-day needs, but will enforce collection efforts where necessary.

It’s always best to be honest with the IRS about your situation and make appropriate filings to save yourself from crippling costs of not doing it anyway.

Tax Liens.

A tax lien is a serious step the IRS can apply against those individuals who owe taxes.

This means the IRS is taking a legal claim over your assets, so you can secure your payments.

The tax lien can be removed if you pay your back taxes or enter into an agreement with the IRS that you will be paying the amount owed.

Tax Levy.

A tax levy is the harshest method the IRS can do to secure your assets and for you to settle your tax liability. These assets could be: house, car, bank account, or anything with monetary value.

You’ll be given 30-day notice before the IRS applies a tax levy. Within 30 days, you will have enough time to stop them from taking away your assets.

Again, this is something that a licensed tax professional such as an Enrolled Agent should help you with.

IRS Wage Garnishment.

IRS Wage garnishment is the most common form of a tax levy that garnishes your paycheck. Your employer has nothing to do with allowing or stopping the IRS from garnishing your paychecks. Employers are bound by law to help the IRS in all collection efforts if they get that far.

Obviously, this means living under financial hardships as most people cannot live without receiving their full paychecks.

There are different ways to stop a wage levy and you should also understand the benefits of hiring tax professionals such as enrolled agents to resolve wage garnishment.

Unfiled Tax Returns.

Did you know that not filing a tax return is much worse than filing a return and not paying for the taxes owed? Nothing raises a “red flag” with the IRS more than simply not filing your taxes in the first place.

You must take action right away to prevent yourself from frustrating IRS actions.

Tax Penalties.

The IRS issue penalties on delinquent taxes owed as a penalty for those choosing to avoid these dire financial decisions.

One shouldn’t underestimate the seriousness of penalties and IRS collection enforcement efforts. BY the time you get to a point where the IRS has levied penalties and other enforcements, the situation has gotten bad.

You need to understand the tax penalties and ways to avoid them. Also, you need to learn how to correct these situations to get yourself IRS compliant.

IRS Letters.

The IRS sends about 75 different types of notices to inform taxpayers about their tax problems or liability.

You should not ignore these notices and make sure to address them straight away.

Tax Audits.

The probability that you will get audited at least once in your lifetime is high. The factors that lead to an audit are numerous, usually stemming from information on tax returns that falls outside the norm for most filers. This could be anything from excessive write-offs, incorrect procedure in supplying information, or anything in between.

Maybe you’re being audited or you simply wanted to avoid any audits You need to have information supporting what you’ve put on your returns.

In closing, these are just a few of the tools the IRS uses to enforce compliant tax collection. In the long run, you are better off never ending up with the IRS singling you out for enforcement. But, if you find yourself in those situations, contact your tax professional today!

Posted by Jon B

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