People who are in tax debt are more
vulnerable to tax scammers because they are more likely to trust that the calls
they get from scammers pretending to be the IRS, are really the IRS. The
scammers’ methods work because taxpayers, particularly those already in tax
debt, know that the IRS will contact them when they discover they owe back
taxes.
Tax Debt and Scammers
The majority of the calls from scammers are
either about a tax refund or tax debt. So, if you unexpectedly receive a call
from the IRS, demanding that you to pay back your tax debt, it is likely the
scammers because the IRS does not ask for information over the phone nor do
they threaten people. They send notices via the post regarding tax debt
collection.
Tax Debt and the IRS
If tax debt is not fulfilled or you did not
file your taxes, the IRS will begin the collection process by sending notices,
which, if ignored, can lead to tax lien or levy. The notices have information
about the amount of tax debt owed, the reason for the tax debt and how it can
be paid. The IRS always encourages those in tax debt to pay the full amount in
one payment, but you should consider which method of payment is the most
convenient for you and can provide you the most benefits.
Resolution of Tax Debt
As the tax season progresses, it is also a
good time to resolve your tax debt. If you have a large tax debt that you
cannot pay, then you may want to look at the various IRS debt payment plans
that allow you to resolve your tax debt, not necessarily by paying the full tax
debt. Unresolved tax debt is an albatross that grows larger with time because
of the continuous penalties and interest charged on it. It is never pretty when
the IRS begins aggressive collection actions.
Before April 15, 2014, make it a priority
to file your taxes correctly and on time, resolve your tax debt and watch out
for tax scam attempts. When it comes to taxes, carefulness and timely action are
necessary.