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Addressing unpaid taxes and tax debt

On Behalf of | Jun 30, 2020 | Firm News |

Every year in the middle of April, Wisconsin residents rush to finish their income taxes so that they can either receive their state and federal refunds or pay their due tax obligations. This year, Americans across the nation have several extra months to complete their taxes, and those who have not yet begun the process may have concerns about fulfilling the tax bills that they anticipate receiving.

Tax obligations are due by the annual filing deadline, and those individuals who do not pay their obligations in time will receive bills from the Internal Revenue Service. Those bills will provide individuals with the outstanding sums that they owe as well as any penalties that have been assessed against them. It is important that individuals realize that interest and fees can continue to accrue against an unpaid tax bill and can cause it to grow significantly over time.

For some, paying some of their bill may be an option, and doing so can be useful to help reduce the overall amount of debt that will be assessed and penalized over time. However, not everyone can make a large lump sum payment to bring down their tax obligation and those who cannot may feel helpless over their inability to make headway on their debt.

The IRS does allow some debtors to establish payment plans to pay off their tax bills and debts over time. While making a single large payment may not be possible for everyone, many individuals are able to set aside smaller sums each month to pay down their outstanding bills. A debt relief and bankruptcy attorney may be able to help an individual dealing with tax debt to better understand their options with regard to this process.

Throughout the process of dealing with tax debt, it is in the interest of the debtor to maintain open lines of communication with the IRS, and a debt relief attorney can help them do that. When a person fails to inform the IRS of their struggles to pay and does not offer to work toward repayment through a payment plan, the IRS may take more drastic collection efforts against them.

The collection process involves a creditor using legal processes to be made whole for the debt that another person has taken out against them. There are different methods that they can employ, such as seizures of property or accounts, liens against property, and offsetting future tax refunds. The collection process can be complex and many debtors prefer to manage their tax delinquencies outside of this course.

All across the country, individuals will have to file their income tax returns in the next several weeks. Those who know that they will owe money and who are concerned about their inabilities to fulfill their obligations can seek help. Tax debtors have options that debt relief attorneys can explain to them and that are tailored to their individual cases. This post offers no tax or legal advice.


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