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The Consequences of Ignoring the IRS

The Consequences of Ignoring the IRS

By on Apr 5, 2014 in IRS | 0 comments

irs buildingWhile it may seem easy to toss away correspondence from the IRS or not pick up the phone when they call, ignoring the IRS is never a good strategy for handling a tax issue.  If you owe the IRS money or are behind in your taxes, your problems will only get worse if you are not responsive to the IRS when they contact you. 

We have outlined several of the most serious and common consequences of ignoring the IRS:

1.  Additional, more serious correspondence

If you fail to respond to the first letter from the IRS, you will get another letter, followed by additional correspondence.  You will generally get a grace period of approximately 10-30 days in which to respond to each correspondence.  While there may be days, weeks and sometimes months in between their communication, you can be sure that the IRS will not forget to follow-up with you.  In addition, the consequences get more severe and your options more limited, the longer you wait to respond.

2.  Penalties, fees and interest

The IRS can impose fees, penalties and interest on all money that you owe them. That means, in addition to the amount due on the tax return in question, you will owe them more money each day that you wait to come up with a solution.  It is always best to try to negotiate with the IRS before your situation gets too complicated and severe, which is normally when you owe them only back taxes.

3.  Tax Levy

A tax levy is a legal seizure of your property to satisfy a tax debt.  This means that the IRS has the right to take your income (wage garnishment) or deduct money from your bank account (bank account levy).  A tax levy can be extremely disruptive to your monthly cash flow, so it is always best to avoid this.

4.  Tax Lien

A tax lien is a process that the IRS takes to use your property as a form of collateral against your debt.  If you do not pay the debt, the IRS can then take your property as a form of payment.  A tax lien can have a very negative impact on your credit score, making it more difficult to obtain a home loan, car loan, or credit card.

The best way to solve your tax problems

If you have received communication from the IRS and are unsure how best to proceed, it might be time to enlist the help of an experienced tax firm that can review your situation and give you advice about how best to manage your unique situation.  Success Tax Relief has extensive experience working directly with the IRS and securing solutions for our clients.  Often we can negotiate agreements with the IRS that reduce the total amount owed or allow you to pay your tax debt over time.

The key is to contact us as soon as possible.  The longer you wait, the more difficult the situation becomes.  If you are behind in paying your taxes to the IRS and have received any communication at all, call Success Tax Relief at 877-825-1179 today.  Relief is just a call away!

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