Tax debt can be a daunting burden for individuals and businesses alike, with consequences that can spiral out of control if left unaddressed.
It’s common for individuals to wonder how they ended up in their current tax debt predicament, so let’s look into the tax debt timeline, starting from the initial accumulation of debt to the strategies individuals can employ to permanently resolve their tax challenges. You may be needing help from our IRS debt forgiveness program at LBS tax.
The Accumulation of Tax Debt
Tax debt can start innocently enough. Many times it’s due to financial challenges that individuals or businesses face. For individuals, it’s often caused by unexpected expenses, a loss of income, or other financial hardships. Businesses may deal with cash flow issues, economic downturns, or additional unexpected expenses that make it difficult to meet their tax obligations.
Additionally, an oversight or even lack of awareness when it comes to tax deadlines and requirements can contribute to the accumulation of tax debt. This can lead to inadvertently missing tax filing deadlines or failing to report all of their income, which can result in an underpayment of taxes owed.
These missed payments may seem minor at first, but they can quickly escalate into an even larger debt. Some taxpayers may choose to ignore their tax obligations or delay addressing their tax debt due to fear, uncertainty, or a belief that the problem will resolve itself.
However, this approach usually makes the problem worse, as unpaid taxes continue to accumulate penalties and interest, leading to a cycle of increasing debt. The debt can quickly spiral out of control, and individuals and businesses may struggle to catch up on their tax payments, especially if they are already facing financial difficulties in their lives.
Trouble with the IRS
The consequences of unresolved tax debt can be severe and far-reaching, and as tax debt grows, individuals may find themselves in hot water with the Internal Revenue Service (IRS). Individual taxpayers may receive notices and demands for payment from the IRS, signaling the urgency of addressing their tax liabilities.
The IRS has the authority to pursue aggressive collection actions to recover unpaid taxes. This can possibly mean issuing tax liens, garnishing bank accounts or wages, and even seizing assets.
Tax liens can negatively impact credit scores and hinder individuals’ ability to get loans or credit. Wage garnishments can leave individuals struggling to make ends meet, while asset seizures can result in the loss of homes or other property.
Moreover, the ongoing stress and anxiety due to unpaid taxes can take a toll on individuals’ mental and emotional well-being, which can affect their overall quality of life.
Seek Assistance from a Tax Relief Professional
When faced with overwhelming tax debt and pressure from the IRS, it’s important to know your options. One of the best ways to seek assistance from an IRS debt forgiveness professional.
A tax relief professional can assess your financial situation, evaluate your tax liabilities, and develop a personalized plan to help resolve your tax debt. They are also well versed in negotiating with the IRS and can likely settle debts for less than the full amount owed.
Get Help from Our IRS Debt Forgiveness Specialists at LBS Tax & Accounting Services
At LBS Tax & Accounting Services, we pride ourselves on being an advocate for our clients, and we work tirelessly to achieve a favorable resolution and alleviate the burden of tax debt. With our guidance and support, our clients can take control of their finances again and finally achieve financial freedom.
Services we provide:
- IRS Tax Audit Services
- IRS Payment Plan Services
- Payroll Tax Relief Services
- Tax Resolution Services
- Tax Preparation Services
- Debt Relief Assistance
- And More
If you find yourself bogged down by looming tax debt, don’t hesitate to contact our office today at 480-664-1249 for a free, no-obligation consultation to review your options. By taking proactive steps to address your tax situation, you can pave the way toward a brighter financial future free from the burden of unpaid taxes. Contact us today.