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You Are Late Paying Taxes – Learn What To Do When You Get One Year Behind

You might be wondering what would be the consequences of you are late in paying taxes. You will have to deal with the IRS when it comes to audit and they will come after you pretty hard. They will want all the information that they can get regarding your taxes. If you are late with your tax payments, you might find yourself facing criminal charges for not paying taxes on time. There are a lot of consequences to not paying taxes on time and some of them include but are not limited to jail time, fines, and it even can affect your license to drive. If you are caught late there really is no option but to pay up and face whatever consequences come your way.

When you are being audited by the IRS, they will look at the amount that you owe. They will consider whether or not you paid your taxes on time and how much money you owe. All these things are considered when dealing with audits from the IRS. If you are found to be delinquent with your tax payments the first thing that they will do is send a notice of assessment to you. This will show up on your statement as an assessed fine and the next due date will come for you to pay.

The second thing that they will do is to send a notification to your employer. This can happen if you have not been working for awhile. The notification may ask that you wait a couple of days to make arrangements so that you can continue to pay your taxes on time. You may have to deal with this until the appeal is reviewed and you can handle it in another way. It is your right to appeal but the longer you take to handle the appeal the worse your financial situation might become.

If this is the case you may have to go into the collection over the unpaid taxes. You may be able to deal with the collection directly but most of the time it will come down to having to spend money on attorneys and legal fees. If you have gotten in this kind of a predicament, you may even have to file for bankruptcy. This can be a serious threat to your credit and will damage your credit for at least seven to ten years.

There are ways to avoid being behind on your taxes if you are late paying taxes. If you have multiple accounts you can consolidate them into just one account with the help of an experienced consolidation company. If you have multiple amounts due you can consolidate those as well. You should keep in mind that when you are looking to find out if you are late paying taxes, you need to know how much you owe and exactly how much you owe on each account. You need to know this so you can negotiate with the IRS for lower rates on your back taxes.

If you want to avoid late fees or fines, you need to make sure that you do not let things get to this point. If you find yourself in this situation you will definitely want to do something about it. There are many options available to you when you want to settle your taxes including negotiation, consolidation, payment plans or even lottery payments. There is no reason to try to deal with the IRS yourself because they are always willing to come to some kind of arrangement. You only need to ask for help when you are at risk because you may not be able to afford the fees or fines alone.