Indiana Bankruptcy Law Firm Gives Advice About IRS Collection Strategies and Penalties

Is the IRS Attempting to Collect Tax Debt From You? Indiana Bankruptcy Attorney Can Help

In 2012, the IRS assessed more than $26.8 billion in civil penalties, in addition to criminal penalties, accuracy-related penalties, preparer penalties for practitioners, and a trust fund recovery penalty for unpaid payroll taxes. The IRS describes these penalties as an educational opportunity for taxpayers to learn about compliance, most taxpayers are struggling financially when they receive these penalties and need the help of an attorney familiar with tax law, IRS collection strategies, and penalties.

The longer you wait to pay back taxes, the greater the penalties will be, and the IRS may even threaten to take your property to repay the debt. Some of the strategies that the IRS may use to collect back taxes include:

• Income tax penalties – The IRS will fine you for delinquent tax balances, and you may be subject to both a failure-to-file tax penalty and a tax penalty for underpayment, and interest will accrue on the balance, making a small debt grow exponentially.
• IRS wage garnishment – When tax debt reaches a certain level, the government is authorized to garnish a portion of your monthly wages to put toward the back tax balance. While this might seem like the easy way to pay off your back taxes, your take-home pay will be dramatically reduced and it might be difficult to pay your bills and care for your family.
• IRS liens – The IRS and place a lien on your assets as security in the event you fail to pay your back taxes. An IRS tax lien doesn't represent actual seizure of your property, but it can be extremely detrimental to your financial situation. Your credit rating will drop and you may find it difficult to take out a loan.
• IRS Summons and Seizures – These are the most drastic measure that the IRS will take to collect your unpaid taxes. An IRS tax levy summons means that the government may seize your real estate, vehicles, bank accounts, and other assets if you don't pay your taxes by the specified deadline.

If you receive notification of an impending IRS tax levy or other strategy to collect the back taxes you owe, the law firm of Saeed & Little LLP is ready to help. Contact us online or call 317-685-2426 to speak to an attorney free of charge.