What Happens When You Have Unpaid Back Taxes?

Sunday, 10 March 2024, 09:00

Ignoring unpaid back taxes can lead to expensive penalties, wage garnishment, and financial hardship. Discover the consequences of not paying your IRS bills and learn why addressing the issue promptly is crucial to avoid severe repercussions.

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Why You Shouldn't Ignore Unpaid Back Taxes

Owing the IRS money from a previous tax year can result in accumulating interest and penalties, potentially totaling 25% of the unpaid amount.

The Consequences of Unpaid Tax Debt

IRS has the right to garnish your wages if you fail to address your tax debt.
Getting onto a payment plan can help you avoid wage garnishment and become current with your IRS obligations.

Reaching a settlement with the IRS may be possible in specific cases, but ignoring the issue is not advisable.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.