Unpaid Back Tax
What will happen if I have not paid my IRS taxes?
If you do not pay your taxes, you will be hit with a failure to pay penalty that accrues at 1/2 a percent per month on the tax debt owed, up to a maximum of 25%. This will accrue for up to 6 years at which point it maxes out at 25%.
Unpaid Back Taxes
Additional Caveats To Unpaid Back Taxes
In addition to not pay, if you have not filed your tax return you will have a failure to file penalty which will accrue at 5% of the tax debt per month, up to 25%
If you do not pay your taxes the IRS will send you a series of IRS Notices and if you continue to ignore them eventually they will begin aggressive collection activities such as:
How To Handle Your Unpaid Back Taxes
What should I do if I have not paid my IRS taxes?
The first step is to become compliant with the IRS. This means filing all past due tax returns needed in order to enter into a formal resolution. Sometimes this may be just a few returns or it may be several return years depending on the situation.
Several Tax Solutions Are Available
There are several tax solutions available to you. Regardless of whether you are making $200,000 a year and just want a reasonable monthly payment plan or whether you make $40,000 per year and have a couple of dependents and cannot currently afford to make installment agreement payments, there is ALWAYS a solution.
These tax solutions include:
If you do not understand your options it is prudent to consult with a tax attorney to learn more about them to see which ones you can take advantage of.
How we handle your unpaid taxes at J. David Tax Relief
At J. David Tax Relief, we will take a look at all of your back tax debt, both IRS and State, and formulate a plan to bring you into compliance. Compliance means filing any past due tax returns and possibly replacing substitute for returns that have been filed by the IRS. Once that is done, we will analyze your financial circumstances, taking into account your income, assets, and expenses. Then we provide you with all of the tax solutions available to you and help you choose which resolution will work best for you. Call us now for a free consultation.