Outcomes of Not Paying Taxes

The job of collecting taxes in the US falls to a tax collecting agency called the IRS or the Internal Revenue Service. Paying taxes facilitates the essential services the government provides that keep our lives running smoothly.

However, there are times when you may default on an annual payment due to unfortunate circumstances. As a result of not paying taxes, the IRS may send you a notice informing you that you have a tax debt and it is due, which has to be paid immediately. If you fail to comply with the notice, it could result in the IRS adding extra penalties and interest, and the notice may be followed up by an IRS tax collector.

If you do not respond to the IRS notices you receive, the IRS will eventually send you a final notice of intent to levy, and a notice of your right to a hearing. They may levy your bank accounts, garnish your wages or social security check, and place liens on your property to encourage you to pay your tax debt. This intent to levy notice has a 30 day compliance period. After the 30 days are over, it may not be possible to do much to salvage your financial status. The IRS typically does not provide you any leniency if you have reached this point in the collections process, and will begin aggressive collections activity. If you have received a final notice of intent to levy, you need to get in touch with a tax representative or the IRS immediately.

There is a great deal of anecdotal evidence claiming the IRS is known for withholding facts, misleading people and setting them up for payments they can not afford. The result of not paying taxes can place a heavy burden on a person’s life. So rather than going alone to the IRS, it is generally best that you take a good tax representative along with you to hammer out the negotiations. Paying taxes is not something any of us like to do, but an experienced tax representative with a strong tax prep team can do a good job of preparing your previous years tax returns, hopefully finding ways to reduce your liabilities. IRS tax relief is not always about settling tax debt. For many TaxMasters clients, it’s about moving back into the world of legality and compliance.

Until you need us,

Patrick Cox Tax Masters

Patrick Cox is President, CEO, and Board Director of Tax Masters, Inc. (TAXS), a company dedicated to helping consumers solve their tax problems. Patrick Cox is a tax expert who founded Tax Masters in 2001, which has become one of the most effective IRS tax relief teams in the tax representation business. Patrick Cox and Tax Masters are located in Houston, Texas.