Austin Tax Blog


If you are one of the many people in America that have unpaid taxes and fear huge penalties from the IRS, don’t panic. The IRS handles many cases like yours and they often give people ample opportunity to resolve their tax issues. Many times, people don’t want to gain the attention of the IRS and choose to hide things. They don’t file taxes (when they can) so that their delinquent taxes aren’t noticed.  This is not the best way to deal with unpaid taxes. In fact, the longer you wait to deal with the inevitable, the more damaging this can be.

Instead of focusing on the consequences of unpaid taxes, our tax experts in Austin are bringing you some of the best tips to deal with delinquent taxes.

Here Are 5 Tips to Resolve Unpaid Taxes in Texas

Contact the IRS

The first thing to do is to reach out to the IRS. Contact the office, give them a call, and discuss the scenario with them. This might feel uncomfortable to do, but IRS is used to cases that are likely far worse than yours. It’s better to try to resolve this before the IRS notices your unpaid taxes and contacts you. If you are uneasy navigating these tax issues on your own, and feel you need additional support to get you through this, you can always hire experienced tax experts who will manage every legal detail with finesse. These tax service providers can negotiate with the IRS directly and come up with the best way to proceed.

Get your records in order

Much of the time, people attempting to resolve unpaid tax issues have not filed for a while (if ever). If you’ve hired a tax service provider to help you through this process, they can help you collect the necessary records and information, when available. For individuals and businesses with no previous records or filings, it’s really important to allow your tax professional to take control. Every little bit counts- ultimately, you need as much documentation as possible to provide to the IRS.

Recreating records

When someone doesn’t file their taxes, the IRS may create a substitute for return based on available 3rd party information (such as a W-2 or 1099). Using this automatic return, the IRS tries to gauge how much tax a person is liable for, but without exemptions and credits that individual taxpayers are responsible for filing. If finding additional records proves difficult, your tax attorney can recreate some of your records using the information collected previously by the IRS.

Talking to the IRS today can help stall additional interest and penalties

The longer you wait to resolve your outstanding tax issues, the more interest and penalties you may be responsible for. Where originally a tax debt seemed hard to manage, the added penalties and interest may make paying back the IRS seem impossible. With guidance from your tax service provider, you may also find a way to make a deal with the IRS that will get you above water sooner rather than later.

Once you make a deal, be sure not to make any new mistakes

Everything with the IRS takes time. As you are working towards resolving your unpaid taxes, the IRS will ask for you to take certain steps where you can show in good faith that you are trying to be tax compliant. Be sure to show that you are committed to making good on your debt and will be compliant in the future. Listen to your tax expert’s advice- they will know the best way to demonstrate you are willing to do everything that is needed to be back in good standing with the IRS.

Need some help navigating this process? You can choose the services of the tax experts at Escobar & Associates, based in Austin. We have a satisfied client base and have years of experience dealing with tax issues in Texas. Feel free to contact us online or give us a call on 512-442-3055 for a free consultation.