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Why resolve Debt?

September 05, 2014  |   Tax News   |   Tags: , ,  

There are some taxpayers that believe avoiding paying tax debt is the best solution, that by just ignoring it you can fly under the radar and eventually it will go away. Unfortunately, this is a misguided assumption because when the IRS takes notice of the non-compliance, they will commence severe collection actions against you.

The IRS will send you a notice to let you know about the tax debt and how it could be resolved without collection actions. If you receive a notice from the IRS it will be your last chance because it means that the IRS has taken note of the tax debt and will begin collection actions.

irs tax payment

It is important to initiate resolution efforts, especially after you’ve received an IRS notice. The amount of tax debt you owe will be included with the information on the notice itself.

Remember that if you do not file your taxes; the amount which is stated on the notice is just an estimate of your tax liability. The IRS does not include deductions and credits which you qualify for to lower your tax liability.

Early resolution of tax debt helps you avoid the penalties and interest that the IRS charges and helps you avoid further collection actions as well.

Even if the IRS doesn’t send you the notice regarding the payment of your tax debt, penalties and interest will keep increasing the original tax debt amount. Therefore, do not ignore the tax debt and make resolution efforts as early as possible.