Given the fact that the economy is slowly recovering in a way that many people have yet to really benefit from, household financial problems stemming from the Recession are still causing problems for many Americans. An Associated Press poll taken in early December 2011 showed a full 68% of the people responding saying that 2011 was a bad year.
Undoubtedly, the tight lending environment and continually high amount of foreclosures and bankruptcies are making it difficult for Americans to get back on their feet financially. Add in the pressure of unpaid taxes and increasing penalties, and it can quickly seem like a very difficult situation with a very intimidating creditor.
Unpaid taxes to the IRS can quickly rise to the top of the list of household financial problems because of the many intrusive collection efforts used by the government.
Benjamin Franklin famously said, “Nothing in this world is certain but death and taxes”. That may be true, but just because taxes are inevitable doesn’t mean that consumers are powerless against delinquent taxes, penalties, and liens. However, the serious potential consequences of unpaid taxes require a careful look at the options available and the desire to take action on the part of the individual, family, or business.
Unlike a traditional creditor, the IRS wields much more potential power over the lives of those who fall behind. From property seizure to bank levies to wage garnishment, the IRS has a wide range of procedures to collect on unpaid taxes.
Difficult though it may be; recognizing that there is a problem, facing the situation and taking preventative action is by far the best option, rather than letting taxes go unpaid while penalties pile up and the risk of a tax lien increases. Tax liens have wide ranging negative effects that can affect all aspects of an individuals’ personal and business life.
Federal tax liens can stay on personal credit reports indefinitely. This can pose a major problem by not just affecting an individual’s ability to obtain credit; but also their ability to buy a house or car. It is also becoming common for credit checks to be performed by potential employers as well as for apartment rentals.
On the news we often see stories about multimillion dollar tax settlements between big corporations and the IRS; or see a high powered business professional go down for unpaid taxes. The negative consequences make for good TV ratings, but the reality is that many people have faced this threat before and have emerged successfully.
High income earners and even celebrities are no exception and can have issues with taxes. Linsday Lohan was recently subject to a $93,000 tax lien that was a result of unpaid taxes from 2009, an oversight during a busy year according to her. Although tax issues can be common with celebrities, higher wage earners in general can have greater liability and exposure from excessive tax liens and audits. This exemplifies the need for preventative action to stop small tax issues from becoming big issues, no matter what economic class the individual is in.
Unpaid taxes and the resulting problems have many causes; whether a business is overwhelmed, there is a medical issue that diverts income, there is loss of employment leading to financial hardship; as well as occasional oversight and mistakes. Whatever the cause, this is not something that will go away on it’s own.
Fortunately, there are options available to those who qualify, and the IRS will negotiate and often settle or reduce penalties with consumers if everything is done correctly. By choosing a professionally experienced organization, it is possible to obtain real relief and victory over tax problems within as little as 3-6 months.
Although tax pressure is common for many Americans, with willpower, experienced guidance, and resolve; it is possible to not only tackle tax debt head on, but to emerge victorious.
Sources :
Internal Revenue Service Manual Part 5
http://www.irs.gov/irm/part5/irm_05-017-002.html
“Linday Lohan Tax Problem Common Among Celebrities” Huffington Post 1/13/12
http://www.huffingtonpost.com/2012/01/13/lindsay-lohan-tax-taxes_n_1203413.html
Associated Press Poll 12/29/11
http://ap-gfkpoll.com/featured/ap-gfk-poll-americans-look-back-at-2011-with-a-shudder-greet-2012-with-open-arms
