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What is an IRS Tax Debt?
An IRS tax debt is the total unpaid taxes assessed against a taxpayer by the Internal Revenue Service. The statute of limitations for IRS tax debts is typically ten years, which means the IRS has ten years from the date an IRS tax debt is assessed to collect the tax before it will expire.
IRS tax debts are typically the result of an unpaid federal income tax return. Usually a taxpayer while file their federal tax returns with the Internal Revenue Service but not pay the accompanying taxes that they owe before the April 15th deadline. After processing the return and assessing a balance due the IRS will add a “Failure to Pay” penalty to the amount of owed taxes to determine the total IRS tax debts.
An IRS tax debt can also be assessed if a taxpayer either does not file a tax return or files a tax return and pays their tax liabilities, but fails to properly report and account for all of their income during the previous tax year. The IRS receives records from all legitimate employers and financial institutions and can determine a taxpayer’s actual income. A taxpayer will face an underreporting issue if the IRS records do not match the taxpayer’s federal income tax return and if the issue is not corrected promptly the IRS will amend the return and assess a tax debt against the taxpayer. If no tax return is filed, the IRS will fill a tax return on the taxpayer’s behalf known as a Substitute for Returns.
Achieving IRS tax debt relief can be difficult. It is often a taxpayer’s best bet to get help from a tax lawyer or experienced tax professional. Tax attorney Roni Deutch has been helping taxpayers settle their IRS tax debts for over sixteen years. To get help from an experienced tax debt lawyer fill out our contact request form or call 888-TAX-LADY.
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Source: RoniDeutch.com
