Consequences Of Not Paying Taxes
Here are some possible consequences if you choose not to pay your taxes:
- Tax Liens: The IRS or the state can place a lien on anything you own in the county where it is filed. This can make it difficult to sell property and affect your credit rating.
- Tax Levies: The IRS or the state can take your money through bank levies or wage levies, depending on your situation. They can also issue levies to your customers if you are a 1099 contractor.
- Bank Levies: Your bank freezes your account for 21 days upon receiving a levy notice. If you don’t resolve the issue with the IRS, the bank will send the money to the IRS. The IRS can issue new levies regularly to catch incoming funds.
- Wage Levies: Your employer withholds a percentage of your take-home pay based on a chart provided by the IRS or the state. In South Carolina, for example, the state takes 25% of your gross income.
- Business Closure: If you own a business, the IRS can close it down due to unpaid taxes.
Tax Liens Against Individuals And Businesses
The IRS can place a lien against you or your business, affecting everything you own. Liens are generally filed for debts over $50,000, although exceptions can occur. It’s crucial to seek legal assistance to resolve tax issues and possibly release the lien.
It’s never too late to resolve tax issues:
- Consult an attorney as soon as possible to begin the process of resolving your tax debt.
- In some cases, the IRS may release a lien if specific actions are taken promptly.
Common Mistakes In Resolving Tax Issues
Individuals and businesses may make several mistakes when trying to resolve tax issues on their own:
- Ignoring IRS Letters: Some people might avoid responding to IRS notices, believing the IRS will overlook their case. However, this is not true, and inaction can result in serious consequences.
- Misunderstanding Offer in Compromise: Attempting an Offer in Compromise without proper knowledge can lead to rejection and extend the statute of limitations for the IRS to collect the debt.
When To Hire A Tax Attorney
Here are some key indicators for when to seek professional help:
- Unresolved Tax Debt: If you’re aware of unresolved tax debt, seek legal assistance to help address the issue.
- Contact From Revenue Officer: If a revenue officer contacts you, it’s essential to immediately consult with a tax attorney who can represent your interests.
For more information on Handling Tax Issues For Business Owners, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (864) 271-7940 today.