Consequences of not Filing Your Taxes As Soon as Possible
54People who have dealt with an IRS problem would testify that they have undergone a great deal of trouble, to say the least. While some of these stories seem outrageous, the fact is, they actually happened. The IRS will really enforce rigid collection procedures to those whom they deem have owed them any amount of money. It does not matter whether the money is truly owed or it was just a result of a mistake on their part as the IRS will really collect from you. As a taxpayer, it becomes your ultimate responsibility to protect yourself especially in instances when you're not guilty of tax violations. The fact is, many people who are conscientious in paying their taxes still suffer from IRS problems simply because the agency made a mistake.
One of the worst IRS problems that you'll have is when the government agency decides to impose a Federal Tax Lien on you. This shows up on your credit record, and you will definitely not acquire loans of any kind. Basically, the banks won't entertain your loan applications. They will not even permit you to open a new bank account. In this scenario, you'll have difficulty paying simple bills such as phone or electric bill.
For those who believe that tax issues and IRS problems will simply work themselves out, they're completely wrong. The only way for an IRS problem to get resolved is if you pay the money that is owed, or you decide to assert your rights to the IRS. Both options will cost you time and money.
As soon as you get a notification from the IRS, it's always in your best interest to immediately do something. Otherwise, they IRS may enforce aggressive collection techniques and charge you with interest rates as high as 25%. You'll continue being subjected to these consequences until the debt is paid, or until the charges are dismissed.
Another significant thing to bear in mind when dealing with IRS problems is that you should ensure that all documents and pieces of evidence are in order. Doing this will help you deal with the IRS examiners in a timely manner, and it will also force them to understand that you are ready for whatever they will throw at you. If you need assistance or your situation is significantly beyond your capacity, it's highly advised that you seek the help of a tax professional. Tax lawyers and CPA's can very much assist you in dealing with these problems.
Aside from the usual penalties that the IRS imposes on delinquent taxpayers, they can also utilize more aggressive collection techniques like wage garnishment. This is called a Wage Levy. You don't want the IRS to take this action because this allows them to take as much as 75% on your paycheck. Can you live with only 25% of your take-home pay?
Therefore, it's very important for you to immediately take action on any IRS problem. The sooner you do this, the sooner you will be able to set your records straight.
Darrin Mish - EzineArticles Expert
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