Having bill collectors calling and sending letters is never a good situation. These calls and messages can be draining on you, especially if you do not have the funds to pay these debts. An even worse situation is having the IRS on your back for taxes you owe. If you have the IRS after you for back taxes, you should find a way to solve this problem. Here are three reasons you should start looking for a solution to this issue.
1. The Debt Will Not Go Away
First, you likely want to avoid the issue in the future. IRS tax debt never disappears. If you owe it now, you will owe it in the future if you fail to pay the bill. The IRS keeps excellent records, and they do not forgive debts. The IRS relies on this revenue to operate the country, and you must pay it. If you hope that the IRS will drop the bill and forget that you owe it, know that this is not an option. If you do not believe this, ask a tax lawyer.
2. The IRS Has Methods to Collect the Debt
The second reason to solve the issue now is to prevent the IRS from forcing you to pay it. The IRS uses several methods to collect back taxes that people owe, and you probably will not like any of them.
One method is through wage garnishment. If the IRS garnishes your wages, you will suddenly receive lower paychecks. They will take part of your income each payday and will apply it to your bill. Once the garnishment starts, it is nearly impossible to stop it. Another method they use is tax liens on property. If you own a house and owe tax debt, the IRS can place a lien on it to secure the money you owe. If you're worried about these things, talk to a tax debt lawyer soon.
3. They Charge Fees, Penalties, and Interest
Finally, the IRS tax debt you owe will continue growing if you do not address the problem. The IRS charges fees, penalties, and interest for all debts owed. You can talk to a lawyer to learn more about how this works.
Most IRS tax debt is not dischargeable in bankruptcy either, which is essential to know if you are leaning towards filing. Your best bet in this situation is to hire a tax lawyer for help. They can help you determine a reasonable solution to your debt problems.