Overlooked Facts About Unpaid Taxes And What May Happen To You If You Continue To Disregard Responsibility

Have you not paid your taxes a few times in the past? Perhaps you meant to but did not. You may even feel like you have gotten away with your actions, but someday you might get a letter in the mail from the IRS demanding payment. This is why it is ideal to take care of the matter before it gets out of control. A tax professional and garnishment lawyer can help you file taxes from previous years or make arrangements to pay back taxes that were filed but never paid. If you continue to dodge responsibility, the following are some detrimental things that could occur. 

Tax Lien

This happens when the federal government "freezes" a person's bank accounts and assets. The purpose of the legal action is to aid in ensuring that people are compliant with the process of paying the taxes owed. It can be considered as insurance that a person will pay and be less likely to flee or elude the government again. Perhaps you are thinking that a lien is not a huge deal, but it actually is. For example, tax liens appear on credit reports and could damage your credit. It is possible to get tax liens removed from credit reports if you enter into a tax settlement and it is part of the settlement agreement. Another way to get tax liens removed from credit reports is to pay the taxes owed. Paid tax liens may stay on your credit report for seven years from the filing date, and unpaid tax liens can legally remain there indefinitely

Tax Levy

Some individuals continue on with their lives after a tax lien is filed. They ignore the notices and the credit damage that happens to them. Unfortunately, the federal government can take further action to get their attention with a tax levy. If you get notice of a tax levy, the matter needs to be handed over to a professional who is familiar with the process of filing legal paperwork to stop the levy. Not taking a levy notice seriously could mean that the next step in the unpaid taxes dispute proceeds with garnishment of wages, which can be embarrassing and life-changing. 

Garnishment

Perhaps you have had your wages garnished before. They may even be getting garnished currently. For example, child support payments or judgments awarded for defaulted loans are sometimes garnished from paychecks. Some people who do not work, but have income such as social security benefits do not realize that the government can garnish those payments too. Banks accounts and assets that were initially "frozen" can also be confiscated if a tax situation advances to this stage. 

Employment Issues

Federal laws aim to protect citizens if they end up getting their wages garnished due to unpaid taxes. This means that your employer cannot legally fire you for a single garnishment. State laws may further protect citizens. If you get fired due to wage garnishment, an attorney should be used as a resource to ensure that you are not a victim of wrongful termination.

For more information, contact local professionals like Stuart J Sinsheimer.

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