Issues related to taxes are complicated, particularly for individuals who are unable to pay the full amount or did not pay the full amount at filing. While tax laws are complicated, it can be immensely helpful to know what to expect and how you should move forward in a productive manner.
In your situation, a California tax law attorney can be your best ally. With knowledgeable guidance, you can know what you should do about your tax debt and how to handle your situation in the best possible manner. With the help of your legal ally, you may be able to find a positive resolution to your concerns regarding tax debt, penalties and the IRS.
What happens next?
If you did not pay in full at the time you filed your taxes, you will receive a bill from the IRS. The first bill will come with an explanation of why you owe the money and request a full payment. If you cannot pay in full at that time, the following information may be useful for your situation:
- If you can pay any amount at the time you receive the bill, it is best to pay what you can, even if it is not in full.
- Any unpaid balance is subject to interest, and paying any amount can reduce the amount of interest that will accumulate.
- It is possible to seek a payment plan with the IRS if you are unable to pay the remaining balance in full.
- You may file an offer in compromise with the IRS if all payment options are exhausted.
- The IRS has the authority and ability to compromise or reduce the amount of debt you still owe on unpaid taxes.
If the IRS is not satisfied with your effort to pay, it is possible that you could face a lien against your property. Dealing with the IRS is complex, and threats of a lien may seem overwhelming in an already frustrating financial situation.
How you can take back control
Your situation may seem bleak, and the thought of dealing with the IRS could be extremely daunting. With the complexity of the laws that pertain to your situation and the confusing nature of tax-related matters, you will find it beneficial to rely on knowledgeable legal counsel at this time.
There are potentially serious ramifications at stake, but you do not have to face it alone. Mistakes, delays and miscommunications can have negative consequences on your already difficult situation, and you would be wise to seek the counsel of an attorney as soon as possible regarding how you can protect your rights and pursue a reasonable outcome.