The Real Cost of Ignoring Your IRS Debt (And How We Can Help You Fix It)

Unresolved tax debt can lead to severe financial and legal consequences. Understanding these potential repercussions underscores the importance of addressing tax liabilities promptly.

Consequences of Ignoring IRS Debt:

*Accruing Penalties and Interest

The IRS imposes penalties and interest on unpaid taxes. The failure-to-file penalty is typically 5% of the unpaid taxes for each month the return is late, up to 25%. The failure-to-pay penalty is generally 0.5% per month of the unpaid taxes. Additionally, interest
accrues daily on the outstanding amount, compounding the total debt over time.

*Tax Liens and Levies

A federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt. This lien can affect all your assets, including real estate and personal property, and may hinder your ability to secure credit. If the debt
remains unresolved, the IRS may proceed with a levy, seizing assets such as bank accounts, wages, or other property to satisfy the debt.

*Passport Revocation

Under certain circumstances, the IRS can certify individuals with seriously delinquent tax debts to the State Department, leading to the denial or revocation of passports. This action can restrict international travel until the debt is resolved.

*Legal Action and Wage Garnishment

Persistent non-payment can result in the IRS taking legal action, including garnishing wages or seizing assets. These measures can significantly impact your financial stability and creditworthiness.

**How We Can Assist

Addressing tax debt promptly is crucial to mitigate these consequences. Our firm offers comprehensive tax resolution services tailored to your unique situation:

*Personalized Consultation: We begin with a thorough assessment of your financial situation to understand the scope of your tax issues.

*Exploring Resolution Options: Based on our assessment, we explore viable solutions such as:

Installment Agreements: Arranging manageable monthly payment plans to gradually pay off your debt.

Offer in Compromise (OIC): Negotiating with the IRS to settle your tax debt for less than the full amount owed, if you qualify.

Penalty Abatement: Requesting reduction or removal of penalties if there are reasonable causes for non-compliance.

Ongoing Support: We provide continuous guidance throughout the resolution process, ensuring clear communication and advocating on your behalf with the IRS.

Ignoring IRS debt can lead to escalating penalties, legal actions, and significant financial strain. Taking proactive steps to address tax liabilities is essential. Our team of experienced professionals is dedicated to helping you navigate the complexities
of tax resolution, providing solutions tailored to your needs. Contact us today to begin resolving your tax concerns and regain financial peace of mind. 505-566-7932