Unpaid taxes, or back taxes, need to be handled as quickly as possible. Consequences of ignoring attempts to collect unpaid taxes are dire in the long run, however, state and federal tax authorities will likely work with you if you stay on top of correspondence and do the things they require of you. Sometimes the process can be overwhelming and the assistance of a tax firm is necessary. The Austin professional tax preparers at Escobar & Associates are here to streamline the process and fight for your rights so that you can avoid future hardships resulting from tax debt.
Unpaid Taxes: Expertise for every situation
Every individual’s situation is different- there are a multitude of reasons you may have found yourself with tax debt. In the case where you did not file your taxes before the deadline and they believe you owe taxes, it is very important to seek assistance immediately as they will file a return on your behalf, to their advantage, which will likely show you owe more than you should.
The harshest penalties and highest interest rates exist for people who allegedly owe federal taxes without filing their return with the IRS. These penalties exist to get your attention and cooperation in resolving the issue promptly. If you filed by the deadline, but neglected to pay the tax debt when it was due, the penalties may be significantly lower but still require action on your part as they will add up quickly. The longer you wait to resolve your tax issues, the worse the situation becomes. You will have fewer options to resolve the debt after the unpaid taxes are delinquent.
If your state or federal tax authority feels that you are not cooperating, harsher tactics like property liens and levies will be administered in order to collect on the debt, putting your credit, your property and assets on the line, which may result in losing the legal claim to property as it is seized by the tax authority.
Resolve your debt.
Before your tax issues become dire, the Austin, Texas based tax specialists at Escobar & Associates can help you know your rights and lead you down the best path to resolve your debt. If financial hardship has kept you from paying your tax debt, there are several possible solutions.
Escobar & Associates can help orchestrate a payment plan called an Installment Agreement to keep you in good standing with the IRS or other tax authority. An Offer in Compromise is available to those that qualify, reducing the total amount owed. A Penalty Abatement may be implemented to ease some of the hardship the tax debt is causing, offered along with one of the payment plans offered. Other tax resolution options exist and it is important to have a team of legal and tax experts who can help you work with the tax authority to find the best plan for you.
Dealing with tax debt can be intimidating, but you don’t have to do it alone.
Contact the Austin IRS enrolled agents and tax professionals at Escobar & Associates today.