September 8, 2022 | Tax Compliance
The goal of IRS and state tax agencies is to get the tax money that is owed to them. Toward this end, they offer programs to make it easier for people who can’t afford to pay their taxes in a single lump sum to be able to pay what they owe. If this describes your situation, you may qualify for such a program that will allow you to pay your full tax debt off over time or to pay less than you owe in taxes. Keep in mind, though, that even if you don’t have the money to pay your taxes, you must still file your tax returns to qualify for one of these programs. You must also file your return to avoid harsh monetary penalties for unfiled tax returns and the possibility of being investigated for tax fraud or evasion.
What If I Owe More Taxes Than I Can Pay?There may be a solution for you if you owe more taxes that you can pay all at once. The following tax settlement programs are offered by the IRS to help taxpayers resolve tax debt:
- Installment payment agreements, which allow taxpayers to pay tax debt over time, in regular installments.
- Offer-in-compromise agreement, which is a settlement in which the IRS agrees to accept less than the full amount of taxes owed.
What Happens If You Owe Taxes and Don’t Pay?What happens if you owe taxes and don’t pay? Nothing good will happen, because tax authorities will eventually catch up with you. If you owe taxes and don’t pay and do not make any arrangements with the IRS or the NYS taxing authority to settle your tax debt, you could face a host of negative consequences, including stop wage garnishment, tax liens and levies, and potentially prosecution for tax evasion or tax fraud, depending upon all the circumstances. Even if you cannot afford to pay taxes all at once, you should always file your tax returns and try to negotiate a solution through one of the tax programs previously discussed. Voluntary Disclosure Program for Unfiled Returns If you have not filed your returns for a year or more and you owe taxes on those returns, you may potentially be able to avoid harsh financial actions and possible criminal charges through a voluntary disclosure program. Both the IRS and New York State offer these programs. These programs involve voluntarily coming clean to tax authorities before they start investigating you. To potentially qualify, you must:
- Tell the IRS or state that you have unfiled returns for X number of years and owe X amount of money.
- File your back tax returns.
- Pay what you owe in full or negotiate an agreement to pay over time.
- Agree to pay all future taxes.
Are You Unable to Pay Your Taxes? Reach Out to Experienced IRS and NYS Tax Attorney Timothy S. Hart for HelpIf you can’t afford to pay some or all of the taxes you owe, do not ignore the problem and think it will go away. It will not. Sooner or later–and probably sooner rather than later—federal and/or state tax authorities will catch up with you. When they do, you could face severe financial penalties and other very unpleasant consequences. Instead of ignoring the tax debt problem, turn to Timothy S. Hart for help. He is a skilled tax attorney and Certified Public Accountant who has a successful history of negotiating payment solutions with the IRS and the New York State tax department for clients with tax debt.
To arrange a free consultation and get on the path to being tax-debt free, call our law office in NYC at (917) 382-5142 or in Albany at (518) 213-3445.Even though our offices are in New York, Timothy S. Hart is licensed to address IRS tax issues in all 50 states, so he can help you with federal tax problems no matter where you live.