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What Happens When Tax Debt is Unpaid in Austin?

— February 15, 2023

When someone only owes the IRS a small amount of money to the IRS, the situation is normally resolved quickly and without any serious problems.

Austin, TX – Most individuals pay their federal taxes each year and send the IRS a portion of their income. For people who work for a company and receive a regular paycheck, most of this is done automatically and they only need to file some tax forms before mid April annually. Others who have their own business or are self employed may have more complicated tax situations, and advice from lawyers or other tax professionals may be required to ensure proper filing and payments. Regardless of each individual person’s total tax liability, they need to make sure that the government gets what they are owed, as they have means of checking for unpaid tax debt and going after the person with various collection means. 

Austin tax lawyers will have additional information about these topics, and anyone who needs legal advice can contact a local firm for a consultation. 

How do people get into debt with the IRS?

Some of the World's Wealthiest are Requesting Higher Taxes
Photo by Olga Delawrence on Unsplash

People may owe money to the IRS for many different reasons. The most common is a simple underpayment when taxes are filed. This can be due to calculation errors or misunderstandings of the tax code. People who do a lot of work on their own and receive 1099 forms from various sources regularly end up not paying everything they own unless they have kept careful records. Still others may have multiple jobs and income sources, and it is not always easy to keep accurate accounting of all of these sources. In some situations, a person may be deceptive or trying to avoid paying their total tax burden purposely, which is illegal and can result in criminal charges.  

Texas tax lawyers can help with debt negotiation and related matters once a person is given notice that the IRS needs their taxes to be paid. 

When a person owes the government money

When someone only owes the IRS a small amount of money to the IRS, the situation is normally resolved quickly and without any serious problems. The government routinely sends out notices and collects back taxes or other similar forms of debt. However, if there are large amounts of tax debt that go unpaid, the government can potentially seize property and assets if necessary to get the amount that the person owes. Once collection efforts are initiated by the government, advice from tax lawyers is crucial to minimize losses. 

Estate planning lawyers can also help ensure that seizures and collections do not affect property distribution through trusts, wills, or other methods of distributing property and wealth. 

Finding a local attorney to help can assist anyone who is looking for a lawyer in their city or state. Those who need to speak with a representative can call 800-672-3103 for a referral.

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