Every year as April 15th comes around, millions of Americans struggle with getting their tax returns completed and turned in, and many of those who get them turned in, aren’t able to pay the taxes due. If you’ve filed your returns, but haven’t paid what you owe, then you are accumulating late fees and interest on the amount you owe. And to add to the stress of just having that debt to the IRS, you are probably causing yourself more stress by not doing anything, and not knowing what actions the IRS might take against you.
Basically, the IRS has ten years from the date you signed your return to collect from you. And although they hope that you will pay voluntarily, if you don’t they can look for other ways to get the past due amount. Depending on the amount you owe, and how long you’ve owed it, they can impose liens on your property, garnish your wages, put a hold on your bank account, and take any tax refunds you may be owed. The good news is that they understand that people have circumstances that prevent them from paying in a timely manner, and so they provide several options to help you get compliant. Depending on your particular situation, you might qualify for a reduction of the amount owed, or you may be able to set up a payment plan. By exploring different options you can find a solution that will get you back on track for paying those past due taxes.