Taxes are confusing, and when people are confused about something, they often ignore it. If this sounds like you, there is no need to fear your taxes or the IRS. In fact, if the IRS contacts you, the worst thing you can do is ignore them. Here are 5 reasons.
You will make things worse in the long run
As we stated, ignoring the IRS is the worst thing you can do. By putting them off, you will not only get on their bad side, but you will also cause many more problems to pop up.
You can incur interest and penalties
The longer you ignore them, the more expensive your problem will become. In addition to penalties and interest, the total amount you owe will double every five years. Once this happens, it becomes much harder to appeal or fight the charges should you figure out they are wrong (which can happen a lot!).
You can lose your wages and bank accounts
The seemingly simple act of ignoring the IRS gives them the right to seize your assets. If you receive a Final Notice of Intent to Levy, make sure you answer. Even if you can’t pay the amount they are asking for, answering the letter will allow you to stop the IRS from collecting your assets and appeal the motion.
It will not go away
In fact, the longer you ignore the IRS, the bigger your problems will become. It is their job to make sure you pay your taxes, and they will not give up simply because they can’t get in touch with you.
The IRS can help you
If you can’t pay your full bill, or any of your bill, the IRS can help. They can help you set up a payment plan and create an Offer in Compromise that lets you pay just part of your bill. Also remember that the people who work at the IRS are human too, and if you have extenuating circumstances that have caused your taxes to be late or made you unable to pay, they will most likely understand and work with you to figure out a solution.
If you are having problems with the IRS, contact the tax professionals at Levy Tax & Associates.