Taxes are an ever-present reality in our world. There are a wide variety of different types of taxes a person can have assessed to them: state taxes, federal taxes, property taxes, etc. In the face of so many different taxes, it isn’t too surprising that when hard economic times hit, people sometimes struggle to keep up with their tax obligations.
When a person falls behind on their taxes, they may feel embarrassed. This may cause them to be tempted to just ignore the problem and pretend it doesn’t exist. Succumbing to this temptation can be a critical mistake. Taking proper actions to address a tax debt is very important, as failing to do so can expose a person to hefty fines and aggressive collection tactics. Individuals who owe back taxes should consider turning to a knowledgeable tax attorney for guidance and advice regarding their situation.
The types of collection methods that a person can be exposed to when they owe a tax debt vary based on the type of tax the debt is on. For property taxes on real property, failure to pay such taxes may eventually cause a person to lose the property the taxes are on. This can be seen in an announcement that a neighboring county, Orange County, recently made.
The county released a list of properties in the county in which the owners of the property have owed back taxes on the property for five years or more. Along with this list, the county has issued an ultimatum of the “move it or lose it” variety to the owners. The ultimatum: enter an installment plan by June 30, 2014 regarding the paying back of the tax debt or face having the property auctioned off.
This underscores that governments will sometimes go to great lengths to collect back-due taxes.
Source: Orange County Breeze, “Property owners delinquent on paying taxes face forced auction,” June 11, 2014