When you have an unpaid tax that is still legally enforceable, it is called a delinquent tax.
Delinquent taxes have unpleasant consequences like interests and even penalties. It is wise to
resolve delinquent taxes early before they amass interests and become a liability.
A delinquent tax refers to any tax that an individual has failed to pay to the IRS. Unpaid taxes
attract several consequences which vary depending on the unique situation. The IRS is allowed
to take action against people with delinquent taxes. Such actions are usually in the form of
garnishments, levies, interests, and liens.
Even if you file your tax returns early, owing taxes still attracts penalties. However, the penalties
will be significantly less than owing and having unfiled tax returns.
The Failure-to-pay penalty is charged at 1/2 of 1% of tax debt for every month that it remains
unpaid. However, the Failure-to-pay will not be charged if you filed for an extension of file taxes
and 90% of the owed tax is paid by the original due date and the balance is paid by the due
date of the extension.
When a taxpayer falls behind on their taxes, the first thing that usually happens is that the IRS
begins to send letters reminding them of their debt and demanding that they pay up.
This goes on for a short while before the IRS becomes a little less friendly in their approach. At
this point the IRS can choose to use methods like a bank Levy, tax lien, wage garnishment, and
property seizure, to recover their money.
Sorting Out Delinquent Taxes
Your tax situation may be bad but it is not out of control. With the right knowledge and team of
experts, it can be resolved. Our professionals have years of experience in handling such
situations and are always available to help you.
The IRS makes certain provisions for you to get tax relief. Call us now to discuss your options.