Posted by The TaxAdvocate Group, LLC

Delinquent Status? All You Need To Know About New Payment Options

Delinquent Status? All You Need To Know About New Payment Options

Did you know that the internal revenue service (IRS) pronounced a new payment options which has already been added to the private debt collection scheme? The new payment option was introduced, so tax debtors can pay their debts with ease, although some tax preparer predicts that this option could later be abused. 

What Happens When The Tax Payer Doesn't Pay Delinquent Taxes? 

Whenever a tax payer skips payment of tax it will attract interest and penalties on whatever amount is owned. The IRS policy can be very unfriendly to tax defaulters due to the incessant increase in the interest and penalties, pending the time the defaulted tax is paid. Note that if you do not pay the amount owned or reply to mails from the IRS, informing you of your account being changed to delinquent, the IRS will send a revenue agent assigned to you, so as to resolve the issue.

What Happens If I Don't Make Payments During The Collections Periods? 

The IRS might issue an assessment and possibly a tax warrant if a delinquent taxpayer is not complaint to paying up their debts. The content of the tax warrants is majorly the total outstanding debt, penalties and interest owed through the process. If the tax warrant is not honored by the taxpayer, then the IRS files a case against the taxpayer through the county superior court, which allows liens to step in. what a tax warrant does is to create a lien against any property or assets belonging to the taxpayer, which can be used to offset the debt owed. You should know that once the IRS files a case against you, they now have the authority over all your property including your bank accounts. 

How Do I Avoid Being Tax Delinquent? 

Firstly, you must know your tax payment deadline. A good taxpayer ought to be knowledgeable about all the responsibilities they possess as a faithful taxpayer. Filling your tax electronically can be very helpful because it is easier and faster. Although you have to be very careful when using the electronic filling method, so you could avoid costly mistakes. It is always advisable to get the service of a competent tax consultant, because not only are they an expert at filling taxes, but they will also make sure that you receive the exact tax refunds and you can also be assured that you can’t be tax delinquent when you have them on your side.

Guidelines on How To Avoid Being Tax Delinquent 

  • You should always keep tab on every process of your tax filling, so you could avoid all unnecessary errors. If you intend to send it via mail, you should make sure to use a registered mailing services, so you can be able to ascertain the date and time you sent the mail.
  • If you change your contact or office address you should make sure you notify the IRS, so you can avoid the IRS sending important mails to your previous address. if you fail to do this, you might attract unnecessary penalties and interest, because your mails are being sent to your old address without you knowing about the mail. 
  • Make sure you always open all mails sent from the IRS. Note that most of the mails sent from the IRS are always important. Sometimes it might be mails containing your tax payment deadline, the correct format in filing your tax. It is very important to know what to file and how to file your tax correctly.

How To Get Delinquent Tax Help? 

It can be a very tedious process to get the delinquent tax help. a lot of individuals and companies claims to have the best resolution practice though. Their services can be outrageous at times and at the end of it all they might not be useful to you. It is best you get the services of a good tax preparer/consultant so they can help you in investigating your financial situation, and determine all your financial details using the master file acquired from the IRS. After which the tax preparer/consultant helps you to negotiate with the IRS and resolve all your delinquent tax issues.

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