Can’t or Unable to Pay Back Taxes Owed

What to Do and Expect with Unpaid Back Taxes

Facts About Unpaid Taxes

Having unpaid back taxes and not being able to pay is a very common thing to the IRS. In an average year, 19% of the people in the United States have back taxes. Since this is such a common problem, you can be assured there are many solutions. The IRS (as well as many states) will work with you so it can ensure that it gets paid. Typically the IRS will try to collect the maximum amount of taxes owed from you with the least amount of effort, and this is a good thing to keep in mind if you intend on settling your back taxes for less than the actual amount owed. The earlier you acknowledge the problem with back taxes and take action, the easier it will be to settle them with the IRS. If back taxes go unpaid you can be assured that the IRS will find you and will eventually take action. The IRS has a very automated process that it goes through routinely in order to make people pay. See below to find a very brief description of the events you can expect to happen if action is not taken to resolve unpaid back taxes.

When you Can’t

Pay Unpaid Taxes Owed

When you have unpaid tax and you cannot pay, you are still expected to pay the IRS. For those individuals that cannot pay in full, the IRS offers many other methods of payment. These methods range from making monthly payments toward the tax amount owed to paying only a fraction of what is actually owed and calling it even. Depending on your financial situation, the IRS will always be willing to work with you.

Steps for Paying Back Taxes Owed

There are many different ways you can pay your back taxes owed. Not only are there ways to pay, but there are ways to settle and pay less than is owed. If you know you can’t pay your back taxes, follow these easy steps for paying your taxes owed.

IRS Actions For Unpaid Back Taxes

  • Receive Assessment Letter and CP Notices (Computer Paragraph Notices, or 500 Series Notices)
  • Receive Notice of Federal Tax Lien (NFTL, IRS Form 668)
  • Once you receive this notice the IRS will have already encumbered your property. A tax lien can greatly affect your life. The purpose of it is to prevent you from selling or borrowing against any of your major assets. more…

  • Receive a Tax Levy
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    Category: Taxes

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