If you had the unfortunate bad luck of missing out on filing for your tax returns or your financial circumstances prevented you from paying your taxes, don’t think the Government isn’t going to miss that payment. You might think that you’re the only one defaulting so nobody is going to mind, right? And you’ll pay an extra tax along with next year’s tax.
Well, here’s where you need to reconsider your decision, you are not the only who might have accidentally or deliberately defaulted on your taxes. In fact, so many people do this that the Government installed a tax collection agency call the International Revenue Services – IRS. Concerned only with the main aim of getting the money owed to them, they are mainly known for their accuracy and ruthlessness in their missions.
Once you fall victim to tax debt, without the proper tax help services, it can get quiet difficult to pull yourself out of the pit you’ve managed to un-wittingly dig for yourself. The IRS makes sure that not only you but your lifestyle also drastically suffers under the following effects of tax debt:
The IRS is known for its tenacity in making defaulters cough up the money for the taxes with little to no regard of the person. Once they have their eyes on you, you will receive legal notices, tenders and if you fail to produce any results, they can slap a court order on top of their assault and haul you off to jail for non-payment of fines and penalties. The stress related to dealing with these warnings and having to procure the money is at times exceedingly high. Having to undergo high stress will have adverse affects on your health and can even result in heart problems.
When repaying a tax debt, you will have to make sure that you have sufficient money to pay the debt and look after your monthly expenses till the next paycheck comes around. With the debt being a more important expense, you might find yourself having to develop an entirely new budget to further curb your expenses. If you were already in a poor financial situation, this can be particularly hard for you or any other family member involved.
Missing Out and Staying on the Debt Cycle
With all your cash flow going towards your paying off your tax debts and you having to switch to a tighter budget will cause you to miss out on a lot of things. You need a new dress? Well you can’t buy it otherwise you’ll go over budget. Similarly, if there are any emergencies, you’ll just have to either do without the necessary items or borrow extra cash from someone, unknowingly adding another creditor to the list.
Although the IRS’s treatment of debtors seems harsh, if proper notification is presented to them about your financial statement and with solid enough proof, you can save yourselves and your family a lot of money, trouble and woe.
If you require any more information regarding tax returns, tax debt payments and procedures; please feel free to contact us at 407-344-1012 for more information.