Finding out that you have unpaid back taxes owed to the IRS can be a scary experience. After your first letter, you may not know how to respond or what payment options are available. Worse, the IRS is not legally required to explain your payment options and will instead send notice after notice with threats of seizing your personal home, bank accounts, and other property without a court order.
Furthermore, the longer you wait to take action, the more interest you accrue which is raising the amount you owe the IRS. As the the amount you owe continues to rise so is the likelihood of the IRS going through on its threats. Time is of the essence.
To protect yourself and your property, it’s urgent that you contact us to schedule your free consultation immediately. Franskoviak Tax Solutions is an experienced CPA firm that has been helping taxpayers with unpaid back taxes find tax relief for years. We’ll work with you to find a solution that works best for your personal situation.
IRS Unpaid Back Taxes
Frequently Asked Questions (FAQ)
What can the IRS do to collect back taxes?
The IRS can do many things, they are the largest collection agency on earth. They can levy your bank accounts, garnish your wages, file tax liens against your home and property, they can seize your home or business, they can summons you to appear in front of them, they can sue you in a civil court and get a judgement against you. And finally if the situation is severe enough they will charge you criminally and put you in jail.
Can I set up a payment plan with the IRS if I owe back taxes?
Yes, the IRS will usually accept a payment agreement to repay the back taxes. In cases of multiple prior defaulted agreements in the past or if you owe over $100k and have the money to pay the tax debt in full then the IRS may not accept a payment agreement. In this situation, it is best to seek help from a qualified tax professional.
Do I need legal representation to set up a payment plan for back taxes with the IRS or State of Michigan?
If you owe over $25k, have a Revenue Officer assigned, or have unfiled back tax returns, it is always best to hire a qualified tax professional to represent you. Make no mistake the IRS is not your friend and they will not be forthcoming with information about all options available to you. A qualified tax professional will assess your situation and present you with all of your options.
Is there a limit on the amount I owe, if I want to set up a payment plan for the IRS Taxes that I owe?
No, there is no limit, but be aware that the IRS will file a tax lien against you if you owe over $25k.
If I set up a payment plan with the IRS do I continue to accrue interest?
Yes, interest continues to accrue on the unpaid balance.
Is an IRS payment plan the best way for me to resolve my back taxes owed?
In some cases yes, but not in all cases, there are different options available such as; Currently Not Collectible, Offer in Compromise, bankruptcy, penalty abatement and a few others. It’s best to consult with a professional to decide which is the best tax resolution solution for you.
If I set up a payment plan for my IRS back taxes, can I pay online?
Yes, you can pay online or setup a Direct Debit agreement to pay your IRS Debt.