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How to Get Tax Debt Assistance

Written by Allison Martin

Allison Martin is a personal finance enthusiast and a passionate entrepreneur. With over a decade of experience, Allison has made a name for herself as a syndicated financial writer. Her articles are published in leading publications, like Banks.com, Bankrate, The Wall Street Journal, MSN Money, and Investopedia. When she’s not busy creating content, Allison travels nationwide, sharing her knowledge and expertise in financial literacy and entrepreneurship through interactive workshops and programs. She also works as a Certified Financial Education Instructor (CFEI) dedicated to helping people from all walks of life achieve financial freedom and success.

Updated August 24, 2023​

2 min. read​

tax debt assistance

Dealing with the IRS can be overwhelming for both individuals and businesses, especially if you owe back taxes or penalties for unfiled returns. Plus, these issues can mean bad news for your finances. The upside is there are remedies available to help resolve the tax debt, or you can hire a tax professional to get the assistance you need.

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The Basics of Tax Debt

Failure To Pay

A Failure to Pay Penalty applies when you miss the deadline for tax payments, even if you filed your return on time. It equals 0.5 percent of your unpaid tax balance on a monthly basis, limited to 25 percent. 

Failure To File 

The IRS assesses a Failure to File penalty if you don’t file your federal tax return by the due date. You’ll pay 5 percent of the outstanding balance per month as long as the return remains outstanding – capped at 25 percent. 

Quick note: If the IRS also assesses a Failure to Pay Penalty in the same month, you’ll pay no more than 5 percent for the Failure to File and Failure to Pay Penalty each month. 

What Happens If You Can’t Pay Your Tax Debt?

Unfortunately, you can face serious financial consequences if you’re unable to pay your tax debt and don’t enter into a short-term payment plan or installment agreement with the IRS. 

Bank Account Levies and Wage Garnishments 

The IRS may seize funds from your bank account to collect back taxes. You could also be the subject of a wage garnishment, which means a portion of your paycheck will be withheld and applied to the amount you owe. 

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Learn how the team of seasoned tax professionals at Larson Tax Relief can help with speedy tax relief for individuals and businesses.

Tax professionals at Larson Tax Relief can help with speedy tax relief for individuals and businesses.

Learn about Anthem Tax Services, a company offering tax debt relief and tax relief services to help people reduce their tax debt.

Anthem Tax Services provides tax preparation and consulting solutions and tax relief support.

Tax Liens

A federal tax lien could also be placed against your property, which gives the federal government rights to your property if the balance for back taxes remains unpaid and you don’t take action to reach a resolution. 

Inaccurate Assessments

If you’re overwhelmed by tax debt and IRS notices that have arrived in the mail, tossing them in the nearest trash receptacle can be tempting. However, the reality is that you may not owe the actual amount included on the notice, particularly if it was determined by an estimate generated by the IRS. 

Unaffordable Payment Plans

Even though the IRS also has installment agreements or long-term payment plans, the monthly payment could still be unaffordable, depending on how much you owe. And unfortunately, not making the minimum payment each month could lead to accelerated collection action. 

Revenue Officers/Agents

You’ll also have to deal with revenue officers or agents if you fail to pay back taxes. 

Tax Audits

Tax audits are another unfortunate outcome that could arise from not paying your tax bill on time.

Popular Tax Relief Companies
Learn how the team of seasoned tax professionals at Larson Tax Relief can help with speedy tax relief for individuals and businesses.

Tax professionals at Larson Tax Relief can help with speedy tax relief for individuals and businesses.

Learn about Anthem Tax Services, a company offering tax debt relief and tax relief services to help people reduce their tax debt.

Anthem Tax Services provides tax preparation and consulting solutions and tax relief support.

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