Back Tax Debts
The majority of IRS problems come from unpaid or unfilled taxes. The IRS is an enormous bureaucracy and they move slowly. Sometimes unpaid tax debts will go unanswered for years before the IRS will get around to pursuing collections, but eventually they will get around to it. Worse still, during the time that the debt went unpaid, substantial interest and penalties will have accumulated. It my end up that the interest and penalties add up to an amount greater then the original amount owed.
If an IRS collections officer has contacted you or you have received phone calls or notices it can be overwhelming. Often the amount the IRS is attempting to collect is afar too much to pay, but the last thing you should do is ignore the IRS. Choosing to ignore the IRS can result in all sorts of nasty outcomes including an IRS lien on your property, bank account levies, wage garnishment, property seizure.
What to do about Back Taxes
Essentially there are only three ways to resolve back tax problems.
1. Pay the IRS
2. Enter into a tax debt settlement
3. Prove you do not owe the amount
While most people who have been hit with a tax bill plus years of interest and penalties simply cannot afford to pay the amount owed, there are manageable ways to resolve the tax debt. In fact the first step should always be to contact a qualified tax attorney. A skilled attorney will be able to determine accurately the amount owed to the IRS, often the IRS will have an inaccurate amount. Your attorney will also understand the best course of action to take; many tax debt settlement programs are available they all have different requirements.
If you have significant back taxes and have been contacted by an IRS collections officer don't wait. Contact Gilland Law Firm today an take the first step in resolving your back tax debt.