How to Settle Tax Debt?

The Government of the United States expects its citizens to pay their income taxes to the Internal Revenue Service every year. There are companies in America where taxes are withheld from the wages of the individuals. This helps in avoiding the circumstance where individuals owe taxes to the IRS. Nevertheless, self-employed people and even the independent contractors are required to make estimated payments of tax amount. Not only in the United States, but this applies for citizens living throughout the world. If you are not able to pay off your taxes within time remaining, you might have to bear with severe penalties. You must not take very long to resolve tax debt because the longer you take the more costly and difficult it will turn out for you. It is necessary for you to have a complete understanding of the ORC tax collection procedure and the options that you have for settling the payment of taxes owed. Find a counselor for tax debt help near me.

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Pay or You Might have to Bear with Penalties

Getting hold of the right procedure of dealing with taxes owed to the IRS is important because if you do not pay off the taxes owed on time, the IRS might file a Notice of Federal Tax Lien. These types of tax liens are generally reported on credit reports of individuals. they serve as negative information resulting in complete drop in the credit score of individuals. There are other enforced collection actions that the IRS can resort to, even if it does not file a lien. The IRS can take money from your wages, bank account and other forms of income.

What happens if you do not File Taxes?

If you do not file taxes with the purpose of evading tax payment, it would not serve as a valid option for you. Many people are of the view that if they do not file their taxes, they would not have to make tax payments. But this is not the truth. You might have to pay a very steep failure-to-file penalty in case you do not file your tax return within the due date. This also includes the extensions. Penalties charged are generally 5% every month or part of the month when the tax return is late. Penalties might go up to 25% of tax amount that is not paid within the due date.