Having delinquent taxes is a problem that only gets worse with time. The original debt may have been difficult to handle, but the sum will continue to increase the longer you ignore it. Escobar & Associates have an exceptional team of Austin tax preparers and tax professionals to help you navigate through negotiations with the IRS, as well as state tax authorities to ensure the best possible outcome as you resolve your debts.
Inaction is Taken Very Poorly by State and Federal Tax Authorities
If you do not settle your unpaid taxes within the fiscal year that they are due, these taxes become delinquent. With delinquent taxes, you may see the addition of penalties to the original sum you owe plus interest may begin to accrue, at a rate that the specific tax authority determines. It is imperative to resolve delinquent taxes as soon as possible; the longer they sit, the bigger problem they become. Depending on the specific penalties and interest added to your original debt by the tax authority, the sum you owe can grow exponentially in a short amount of time, becoming truly unmanageable. Do not ignore delinquent tax notices- inaction is taken very poorly by state and federal tax authorities. For some people, several years or even decades have gone by where the person has not filed their tax returns at all, making it difficult to resolve their delinquent tax status on their own. Remember, the longer you wait, the more you will owe, and the harder it will be to deal with it.
When delinquent taxes remain unresolved for an extended time, the tax authority may escalate the issue by placing a lien on your property and eventually levy your property, seizing your assets to satisfy a portion or the full amount of the taxes the tax authority alleges you owe. You could eventually see your wages garnished, your property seized and your credit in shambles. If not handled properly, the repercussions of tax debt can be crushing and last for years.
The more complicated your delinquent tax status becomes; the more challenging it is to resolve. It is important to have a team of skilled and knowledgeable tax specialists to guide you through the steps laid out by the tax authority in order to determine the best course of action and to prevent an escalation of the problem. Don’t delay- let the IRS Austin, TX. tax experts at Escobar & Associates facilitate the best options to get you back on track. Contact us for your free consultation.