When you are delinquent on your taxes, there are a number of severe penalties with which you can be hit. The three types of penalties that you have probably heard about are tax audits, tax liens and levies.
We’ve talked about tax audits before, and it is an issue that many people have to deal with proactively in order to fix. You can work out your audit with the IRS, and the solution could end up being far better than you anticipated — but you have to deal with the issue in an efficient manner, and you will want an attorney by your side to help you through the process.
Tax liens are also very disruptive to a person’s life, as they will find it nearly impossible to sell major piece of property, obtain new lines of credit or basically make any large-scale financial moves while the lien is in effect. The lien will stay with your name until you have paid off your back taxes and, again, handling this in an expedient and effective manner is crucial.
Tax levies are authoritative sanctions that allows the Internal Revenue Service to seize your property in order to make up for tax debt. This can be a complex and confounding punishment that many people don’t know how to deal with, but rest assured, there are ways to handle a tax levy under your name.
As with any punishment or consequence that involves delinquent taxes, you should consult an experienced tax attorney to help you out of your predicament.