Filing your income taxes each year and paying the taxes you owe might not be something you enjoy, but you cannot avoid it. The IRS expects everyone to pay their taxes, and they will come after you to get them if necessary. If you owe money to the IRS right now, here are some of the leading reasons you should find a way to settle this debt right away.
The IRS Will Catch You
The IRS has systems in place that help them stay on top of taxes that people owe. Therefore, they will catch you if you do not pay your taxes. They will also catch you if you do not file your tax returns. You cannot avoid filing and hope that the IRS does nothing. The IRS always comes after people for the money they owe, so you should aim to settle your back taxes quickly.
The IRS Can Intercept Your Tax Refunds
If you count on getting a tax refund each year, you can expect to lose yours from now on if you owe them money. The IRS often goes after tax refunds first when people owe money for back taxes. If you do not file a tax return to avoid this issue, you will face more consequences. Therefore, you cannot avoid filing your tax returns to stop the IRS from taking them.
They Charge Fees and Interest
From the day your taxes are due, the IRS will start charging interest on the money you owe. Additionally, they will charge a fee for not paying on time. If this happens, you will owe even more money to the IRS because the debt will keep increasing from the fees and interest. If you want to prevent owing more money, you must work out a plan with them.
The IRS Can Garnish Your Wages and Put a Lien on Your Home
One last thing to understand is the power the IRS has when people owe them money. One thing they can do is garnish your wages. If the IRS does this, you will have no way to stop the garnishment until you pay your full balance. If they place a lien on your home, you will also have to pay the debt if you ever expect the IRS to remove the property's lien.
Owing back taxes to the IRS has many consequences. If you need help settling your tax debt, contact a tax attorney today.
Contact a law firm like Harris Shelton Hanover Walsh PLLC to learn more.