The Internal Revenue Service has sweeping power to collect back taxes from individuals who are delinquent on their accounts. The agency has the authority to place liens on property, seize assets, and freeze bank accounts, all in an attempt to collect back payments. However, there are limits to what the IRS can do to collect due taxes. For example, the agency only has a limited amount of time to pursue collections. There is a limit on IRS tax collections and learning about that timeframe can help you decide how to approach making payments on your account.
If there are errors on your federal income taxes, you may have adopted the "wait it out" approach. It's true that the Internal Revenue Service has a maximum of 10 years to collect on your back taxes, so if you're patient (and fearless) enough, you might be able to outlast the agency's power to collect. In the meantime, though, the IRS may have taken drastic measures that could negatively affect your financial livelihood for years. Instead, why not learn about a few ways to pay off your back income taxes?
If you're in debt to the Internal Revenue Service, the worry of owing back taxes may be eating away at your peace of mind. Taxpayers who owe large sums of money to the IRS have to concern themselves with the possibility of tax liens, tax levies, and potential legal action. Instead of dealing with the stress of being in debt to the IRS, it's much better to find ways you can settle your back income taxes. Doing so quickly will help you settle your account and sleep better at night.
If you're in the unfortunate position of owing past due income taxes to the Internal Revenue Service, you may be feeling concerned about what the agency can do to try to collect these funds from you. You may even be unsure about how to go about resolving this matter appropriately. Learning what you should do about past due income taxes is important, because the longer this situation goes on, the worse the possible consequences can be. Here's what you can do to resolve a past due income tax bill.
I
f you're far behind on your income tax debt you might be thinking about pursuing bankruptcy protection to get some relief for back taxes. However, rather than thinking of bankruptcy as the solution to a problem you'll need to find out some details about how bankruptcy works and if there are better options for settling your tax debt.
Do you owe a large amount of back taxes to the Internal Revenue Service? If so, you may be struggling under the burden of repaying such a debt, especially if there are interest fees and penalties accruing by the day. The good news is that if you've been in arrears on your tax debt for close to 10 years, you may become eligible for permanent tax relief under the statute of limitations on IRS collections. This provision allows for the expiration of back taxes under a federal law. Before you can claim this provision, though, you'll have to find out if you qualify.
