Why You Need to File Back Taxes
By: Chintamani | Posted: 23rd November 2009
If you earned $8900 as a single individual or about $17,800 as a married couple in the calendar year, you have to file an income tax return. If you had enough withholding, you may not need to pay the IRS anything. However, if you owe, you need to pay as soon as you possibly can. Stalling tactics and delay do not work with the IRS. The IRS is the most tireless collection agency in the world. If you owe them money, they aren't just going to go away.
Inaction is the worst response to the Internal Revenue Service. The IRS hates to be ignored. In fact, they will not stand for it. Immediately upon receiving notification from the Internal Revenue Service, you need to take action. Otherwise, the IRS will begin to apply their particular brand of collection strategies. The strategy will begin by immediately imposing very high interest charges to the debt they say you owe. These penalties and fines will continue to increase during all the time you owe.
In their arsenal, the Internal Revenue Service can impose a Federal Tax Lien. Banks will block you from opening any new accounts, you will have no hope of getting a loan of any kind, your property and assets could be seized, and your credit record will be scarred for a long time to come.
Then, there is wage garnishment. If the Internal Revenue Service decides to garnish your wages in order to collect a tax debt, imagined or actual, they can take up to seventy-five percent of your net earnings from you every pay period. Do you think it would be possible for you to live on only twenty-five percent of your take home earnings? How long would it be before you are behind in every bill and facing the real threat of losing everything you have?
Remember, as well, that you cannot make any installment deals with the Internal Revenue Service if you have if you have failed to file returns, and you cannot make an Offer in Compromise or abate tax penalties if you have failed in filing income tax returns.
You might want to look into hiring a professional tax resolution service to aid you in this matter. They can help you to file back returns and come to the best resolution over any unpaid tax debt, penalties, and fines you may have incurred with the Internal Revenue Service.
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Tags: irs, inaction, interest charges, married couple, high interest, getting a loan, internal revenue service, offer in compromise, tax penalties, income tax return, income tax returns, new accounts, tax debt, wage garnishment