Tax Debt, Scams and the IRS

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.

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