Tax problems can be some of the most stressful financial and legal issues that individuals can face. When you find yourself facing this type of a problem, it is vital to be informed about your taxpayer rights and options to avoid making this problem worse than it has to be.
What Should You Do If You Have Not Filed Your Taxes In Several Years?
Every year, individuals are obligated to complete their taxes on time. Unfortunately, there can be a variety of reasons why individuals may not meet this obligation. When this mistake is made, there are many consequences that could follow. In particular, individuals could face extensive fines, asset seizures, and wage garnishment. Extreme cases can also result in incarceration or other severe penalties. For these reasons, individuals should make sure to retain a tax attorney so that they can resolve these matters as quickly as possible. In many instances, the fines and penalties are calculated on a monthly basis, which can quickly cause these penalties to become extremely high.
Will Having Back Taxes Always Result In Wage Garnishment?
There is a common assumption that back taxes will always result in wage garnishments. While this is one of the tools that the government has to compel payment of taxes, it is not the only option that is available. For example, it is also possible for individuals with tax debts to negotiate payment plans with the government. This can allow for more flexibility on the part of the debtor. Unfortunately, if you violate the terms of this payment plan, you may face the prospects of wage garnishment. In the event that you must be late on these payments, it is vital to make the payment as soon as possible or to make a partial payment to help avoid triggering wage garnishments.
Can Bankruptcy Eliminate Your Tax Debt?
Some individuals that are facing the prospect of needing to repay a very large tax debt may assume that bankruptcy will allow them to escape this debt. Yet there are limits to the type of debts that can be erased through bankruptcy protection. In particular, tax debts are among the types that are exempted from the bankruptcy process. As a result, individuals will not be able to use bankruptcy to escape these debts. However, your tax attorney may be able to negotiate a reasonable payment plan on your behalf to make it easier for you to settle this debt while minimizing the financial strain that it can cause.Share