Unpaid Taxes

Unpaid Taxes

Unpaid Taxes

Unpaid taxes are a broad term for unpaid taxes which were not properly paid on a previous year’s return. Typically, such taxes are due from a previous year. Several causes for unpaid taxes can be determined, from negligence to fraud. A taxpayer may be negligent in failing to file his/her year’s return, by not reporting all incomes, by failing to file his/her income tax returns, or by willfully failing to file. In cases of fraud, the individual committing the crime may attempt to conceal the taxes with the intent of covering up his/her crimes. Negligence is the most common cause for an individual not paying his/her back taxes. An example of this could be a business owner, who is responsible for providing the payroll for his employees but fails to remit his payroll tax. Another example is a homeowner, who is responsible for ensuring that his property taxes are paid. In this case, he may attempt to resolve the delinquency by making a personal arrangement with the IRS. However, if the homeowner does not have enough savings to make an installment agreement, he may be required to apply for an installment agreement from the IRS.

Collection is another cause for unpaid taxes. An example of this would be the non-payment of back taxes to the IRS by a property owner. Property owners who do not make payment get put on the IRS’ list of taxpayers. The taxpayers may have to face legal actions from the IRS. This is another reason why a person who owes a debt to the IRS should seek professional help from professionals. When applying for a debt consolidation loan, a person must first determine the amount he/she will be able to repay. This will determine the amount to be repaid by the individual. Once the amount has been determined, the loan provider will deduct the unpaid taxes from the borrower’s loan amount. The loan repayment process may take several weeks or months. After this, the borrower will receive the full amount due the IRS along with the IRS’ interest and fees.

Settle Unpaid Taxes Option

A compromise is another option available to many taxpayers to settle their unpaid taxes. Many taxpayers are unable to pay off their debts in full. If you meet the requirements under the law, you can apply for a compromise. In this case, the IRS will agree to accept less than what you owe back taxes in return for your liability settlement. The IRS offers various options for delinquent homeowners to pay their taxes. It is important to remember, however, that the tax collectors will not let you off the hook easily. There are legal actions the IRS may take against you. To learn more about these, see IRS Repossession Help.

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