What are delinquent taxes?
What Are The Consequences of Delinquent Taxes if A Taxpayer Fails to Pay Them?
The consequences of delinquent taxes vary significantly depending upon the situation of the taxpayer. One of the biggest consideration factors is whether taxes have been filed. First and foremost, penalties and interest will accrue on top of the outstanding amount. The total penalty for having non filed and unpaid taxes is 10 times greater than having unpaid taxes alone.
The order of the process then progresses if you do not pay the amount or respond to letters or notices that your account has changed to delinquent. If taxes remain unpaid, the IRS and most states follow a standard collection procedure for most taxpayers that often ends with liens and levies.
If you have delinquent tax returns, the IRS will catch up to you soon. A Revenue Agent can be assigned to your account and they’ll reach out to you in order to resolve the issue.
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UNDERSTANDING DELINQUENT TAXES
If taxes are not paid on time and far exceeds the original due date, they are classified as delinquent taxes. The IRS has the authority, jurisdiction, and power to collect all delinquent taxes by imposing penalties.
Here are some important facts about unpaid taxes you should keep in mind:
- The IRS requires taxpayers to comply with their tax return filings before considering and accepting a tax debt resolution of their liability.
- If a taxpayer fails to file a return, the IRS may prepare a substitute return for that person. If this happens, they will not entertain any deductions or dependents.
- A taxpayer may face imprisonment if he or she fails to file a required tax return.