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Tax debt could lead to a number of problems for taxpayers

On Behalf of | Jul 31, 2020 | Tax Debt

Many people have taxes withheld from their paychecks, which means that they will owe less to the IRS when it is times to pay taxes or that they could receive a refund if they have paid in too much. However, when individuals do not have enough taxes withheld by their employers, they could be in for a rude awakening when it comes time to pay taxes. Unfortunately, some Atlanta residents may not be able to cover the balance owed and end up with tax debt.

This type of debt can certainly seem worrisome, and if individuals have the ability, they should work to pay off their debt as quickly as possible. However, some taxpayers may not have the means to cover those unexpected balances. If a balance goes unpaid, the IRS will send notices and attempt to contact the taxpayer about the debt. If the notice goes unanswered, the IRS will then likely put the taxpayer into collections.

Even though a person may owe taxes one year, he or she could be in line for a refund the next or another subsequent year. Because someone who cannot pay outstanding tax debt likely has other financial issues, he or she will likely look forward to that refund. Unfortunately, if the taxpayer has not addressed outstanding balances, the IRS could keep that refund to address those unpaid balances.

Additional issues can stem from tax debt, including penalties, fees, potential liens and seizure of property. As a result, Atlanta residents who are contending with this type of debt may want to look into their options. Experienced tax law attorneys may be able to help them take advantage of payment plans or other debt relief methods that could effectively address their tax-related problems.