September 12th, 2018
Owing back taxes is something that nobody plans. But every year, Americans fail to pay billions in taxes. The average American household owes about $132,500 in debt. That does not include the potential tax debt that you may owe. When you add that burden to the numbers, it can become overwhelming.
Tax debt occurs for many reasons. Mistakes on previous years' tax forms, an employer failing to withhold enough taxes, and other problems are all common causes of tax issues. And when these problems arise, overcoming them is incredibly difficult to do. Often, getting help from the pros is the only option you have.
The Big Burdens
Owing taxes is something that everyone faces. But when you fall behind on your tax debt, things can get more difficult to manage. It actually brings more burdens than you might realize, including:
Growing Financial Struggles
The debt alone is hard enough to manage, but when you have tax debt it will begin to accrue interest. This interest means that the amount you owe will grow and grow over time. The longer it takes you to pay your debt, the more you will end up paying. Add to this the fact that your tax debt will make it harder to meet your other financial obligations, and it becomes clear that it is one of the hardest financial issues to deal with.
Knowing that you are in debt can bring huge stress as well. This stress can lead to things like lower self-confidence, increased agitation, irritability, and depression. In serious situations, it can actually trigger physical health problems as well.
Simply put, tax debt can bring significant burdens that will impact virtually every aspect of your life. Dealing with your back taxes is a must and the only real way out of this situation. Things are complicated, and not always easy for the average person to manage.
What Will The IRS Do?
When you face a tax debt, the IRS may take numerous steps to collect that can have big consequences. Some of the steps they will take include:
A tax levy is literally a seizure of your assets. Once seized, they will be resold to pay off your debt.
Your employer may be required to hold back up to 25% of your total income until your tax debt is settled.
You may also face criminal charges and penalties as a result of not paying your taxes.
You do not have too many options when you face serious tax debt. You will have to pay the government, but with tax experts on your side, you may be able to resolve the situation in a better way. Your tax expert may negotiate a slightly lower amount, set up monthly payments that you can meet, and more. But to get help, you will have to take the first step. Contact a local tax expert today.