Tax debt problems plague a large part of the population and leave despair and anxiety in their wake. For people with tax problems solutions seem impossible. However, it is possible to resolve tax problems with the help of a professional. In this article, we’ll review the rights of taxpayers to help those who need help with tax problems to know what they’re up against.
Why Do We Even Pay Taxes?
The U.S. Constitution, adopted in 1787, gave the government authorization to lay and collect taxes. It also requires that some of that revenue be given to states, according to their populations. Federal, state, and local taxes pay for things everybody uses like schools, roads, hospitals, the military, and government services. People are taxed on their income, property, and purchases, though sales taxes differ from state to state. New York residents pay eight percent sales tax while Delaware residents don’t pay sales tax at all. Chicago residents are taxed for fountain soda drinks at nine percent and for bottled and canned soda at three percent. Regardless of the amounts, taxes are used by all levels of government to pay for public projects and services
What Happens If You Don’t Pay?
Neglecting to pay your taxes or underpaying can be very serious. The penalties imposed on delinquent taxpayers include interest accrued on the overdue amount, eventually resulting in an even higher amount due. The IRS does file a substitute return for those who don’t file, but it doesn’t account for any exemptions or expenses to which you may be entitled and might overstate your actual liabilities.
Once that substitute return has been filed, the IRS begins collecting. This process can include wage garnishment or other levies. The IRS may take a portion of your wages directly from your employer, extract money from your account, or file a tax lien against your property. In order to take a principal residence, the IRS must go to court and receive the permission of a federal magistrate.
Is It Possible to Resolve IRS Problems?
Yes. For those who have tax problems solutions are available. In the first place, many find it handy to have certified individuals prepare their taxes. It is estimated that the U.S. is home to approximately 1.2 million tax preparers who can help you make sure that you don’t miss anything in the first place. For those who already have tax problems solutions include installment agreements, offers in compromise, and in extreme cases, bankruptcy. Because the Constitution’s Fifth Amendment forbids the government from taking an individual’s property without due process of law, those who owe taxes are always notified before a levy, lien, or garnishment takes effect. At this time, it is recommended to take action for debt relief. Anyone owing more than $10,000 is encouraged to hire a tax attorney who can help with the process.
For those with tax problems solutions might seem impossible. However, it is very possible to get out of tax debt with a little dedication and work. Don’t let the IRS frighten you. Help is out there. More.