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Find Out If You Owe Outstanding Tax Debt to the IRS

Posted by on Feb 1, 2016 in IRS, Tax Debt Paying |

E xperts estimate that Americans owe 114.2 billion dollars in unpaid IRS tax debt. How is this possible? Well just take a look around your community and notice how many people are out of work, relying on public assistance, or struggling to make ends meet. Even the American government is in significant debt so it’s no surprise that thousands of Americans are fighting to fend off IRS collections every year.


If you are worried that you might have an outstanding IRS tax debt, then it’s important to gather information quickly to determine exactly how much you owe. One of the easiest ways that you can determine if you have IRS tax debt is to call the toll free number of the IRS. When you call and give the agent your basic information, they can pull you up in the database and quickly let you know if you owe an outstanding tax bill. You can also go to the IRS website and submit a request for your IRS transcripts. This will give you instant access to a complete list of what you have owed and paid over the last three years. This is a wonderful way for you to see everything in detail.

When it comes to an IRS tax debt you should be checking the state revenue agency as well as the federal. You can make a phone call to the state department just like you can call the federal department. If you would like to ask them for a transcript as well then you can certainly do that. Always look online to see what is available to you there before you deal with traditional mail. The process to receive tax transcripts varies from state to state.

If you do owe a significant amount of back taxes, the IRS can place a lien against your property. In fact, the IRS can file a lien against you even if you don’t own your home. By filing the lien with your local authorities, it will automatically go into effect the next time you purchase a home. If you are concerned that you could have an IRS lien on your property, call the local clerk of courts office to request more information. Some counties will even allow you to do these searches on the Internet now.

Shakedown1As soon as you find out that you owe money to the IRS you should make every attempt to get them paid. Make a phone call to the IRS as soon as you can and set up a repayment plan. Be aware of the fact that you may be required to pay penalties as well as late fees on whatever you owe. The sooner that you get this matter taken care of the better off you will be. If you are unable to pay off your tax debt, contact a tax attorney immediately. A professional tax defense lawyer can work on your behalf to reduce the amount of back taxes you owe and to set up a reasonable installment agreement that won’t place a major strain on your current financial situation.

What to Do When You Can’t Pay Your Tax Debt

Posted by on Feb 1, 2016 in IRS, Tax Debt Paying |

W hen April 15 rolls around and you file your tax return, you could end up owing a large sum of money to the IRS. If you recently lost your job, faced a medical crisis, or had significant financial loss, you might be unable to pay your tax debt on time. No one wants to end up as an enemy to the IRS, but outstanding debt is sometimes simply avoidable, especially in shaky economic times. If you find yourself with a large tax bill and an empty bank account, don’t panic. You have several options.

First and foremost, try to pay your tax bill as soon as you possibly can to avoid accruing additional interest and penalties. Always try to take care of the IRS tax debt for the last day of tax season. This is extremely important because if you take care of this before the end of tax season you might see that the government may be more willing to work out a payment plan with you. If you know that you are going to end up owing a significant sum of money, ask for an extension before you file your taxes and then scrimp and save as much as possible so you can pay your bill without extra penalties.

Another option is to contact a tax defense attorney. Ideally, you want a tax attorney that has a team of enrolled agents that are trained to navigate complex issues within the framework of the IRS. These agents have been trained to help the public with the IRS tax debt that they are struggling with. With 76 percent of Americans living paycheck to paycheck, the IRS knows that people will oftentimes be unable to pay their debt. That’s why they train agents to assist in these situations.

Some people will make phone calls to the IRS in order to discuss the amount of money that they owe, and how they will go about repaying it. If you are thinking about making a phone call in order to discuss all of this then you should always have a recording device ready to go. This is completely necessary to ensure that you have a record of everything that is being said by the agents that you are working with. You never know when you will need proof of your conversation.

Even if you cannot afford to pay the total debt, you should pay as much as possible. Sometimes a tax attorney can negotiate a deal with the IRS where you can settle the debt for a lesser amount if you agree to pay it all at once. If you are able to make half of the payment then you should. Doing so is a wonderful way to show the government that you are willing to work with them and that you are really interesting in repaying the amount of money you owe. Making a partial payment will make the IRS very happy and they may be more willing to set up a repayment plan.

Finally, no matter what comes out of the repayment negotiations, you want to be sure that you have the final agreement in writing. You might need this as proof later on. It can also be reviewed if you have any questions once the plan has been put into place.