Delinquent taxpayers are individuals or businesses who owe taxes to the government but have failed to pay them within the established time frame. This can be an issue for any taxpayer, but it becomes especially important for those who own businesses and make a living from their work. So, who gets labeled as a delinquent taxpayer? Let’s take a closer look.
The Internal Revenue Service (IRS) views delinquent taxpayers as those who have not paid their taxes in full and on time. As soon as you miss a tax payment deadline, you will be considered delinquent by the IRS. Depending on the amount of money you owe and your filing status, the IRS may choose to initiate certain actions against you to collect the debt. These actions can include penalties, interest charges, and even criminal prosecution in extreme cases. It is important to note that these actions are taken regardless of whether or not you were aware of your delinquency before being contacted by the IRS.
The IRS has specific procedures for dealing with delinquent taxpayers and will typically begin with a series of notices sent directly to your address or through registered mail informing you of your delinquency status and outlining what steps need to be taken to pay off the debt. The notices may also include information about any additional penalties or interest charges that have been added due to your delinquency status. Once your debt is paid off, however, any associated penalties or interest charges should be dropped automatically.
The best way to avoid becoming a delinquent taxpayer is to make sure that all of your taxes are paid on time every year. It is also important to keep track of how much money you owe in taxes so that there are no surprises when it comes time for filing season. If you do happen to find yourself facing unpaid taxes, you must contact the IRS immediately so that they can provide assistance in resolving the issue and help set up payment plans if necessary.
The IRS provides several methods to pay your taxes if you owe them, including paying all at once or making payments over time.
No one wants to owe taxes to the federal government, but unfortunately, it happens more often than it should. The good news is, if you're unable to pay your tax debt right away, there are options available. According to the Internal Revenue Service (IRS), the first step is to file all required tax returns and determine how much you can pay each month.
If you're unable to pay your taxes in full and don't qualify for an online payment plan, many taxpayers can request an installment agreement with the IRS by submitting Form 9465. With this type of agreement, you'll make regular payments toward any owed taxes for as long as 72 months until the debt is paid in full. Note that certain setup fees depending on your income bracket may apply; however, this can be a great option if you're struggling financially and need some extra time to pay off your tax debt.
If you decide that an installment agreement isn't the best choice for you at the moment, there are other alternative payment options available through the IRS like Offer-in-Compromise or Currently Not Collectible status. Regardless of which option you go with, it's important to remember that any unpaid taxes may incur penalties and interest until they are fully paid off.
Not paying your taxes can result in some very dire circumstances. Consequences may include being fined, having a lien put on your assets, or even criminal prosecution. If the IRS finds that you have willfully violated federal tax laws—for example, by filing a fraudulent return or committing tax evasion—you could face charges and imprisonment of up to five years in federal prison.
Aside from jail time, people convicted of serious offenses related to the IRS may also have to pay higher fines than those given for non-criminal cases. It's crucial to always take criminal penalties seriously since they often can't be avoided. If you're going through an IRS investigation or are facing any tax-related charges, get legal help so that your rights will be protected during what could otherwise be a tough process.