Unique Original Articles » Is Your Tax Debt From Years Past?

The IRS has literally hundreds of reasons why a taxpayer may owe them money or not pay their annual income tax. Reasons vary from not filing for several years to not being able to pay the federal tax debt in the first place. Whatever the reasons be for not filing or paying the delinquent tax returns, this does not stop the Internal Revenue Service from sending those annoying collection letters on a continual bases to remind you. And when you don't respond to these important notices, then the IRS will kick it up a notch on other collection procedures.

If you have had any dealings with a collection agency, then you know that you virtually need to take anxiety medication to keep you from going over the edge with all the stress from your delinquent taxes. You may be aware of several rumors on and off the internet that claim federal taxes have a so-called "Statute of Limitations". Technically they do. If you were to talk with a tax attorney for IRS tax debt relief, you would find that there is a stated number of years that the IRS has to collect from you the income taxes owed, in fact, the IRS has this information posted on their website at IRS Collections Information. Nevertheless, be aware that there are many things that can stop or (place a toll) on the Statute of Limitations, and not knowing these issues would put you directly in the cross-hairs of the IRS revenue agent.

Reasons why the Statute of Limitations may not apply to your particular situation:

* You file for bankruptcy. Filing BK alone does stop the collection activity of the IRS unless the tax debt itself is included at the time of the BK; however, most people find that using a debt free settlement vehicle like this often has repercussions because you still may end up owing even more money to the IRS once your BK has been discharged or desolved.
* You have a Collection Due Process hearing.
* Your tax case goes to federal tax court.
* You sign a waiver notice that puts you into an installment agreement with the IRS.
* Applying for an Offer-in-Compromise (OIC).
* Internal Revenue Service applies for a lawsuit against you.

If any of the conditions are met even slightly, then it's pretty much a given that your statute of limitation claim would be invalid and the IRS would be granted the right to collect from you the income taxes owed. That being said, you as a taxpayer have certain rights and the IRS must make sure they adhere to them. Knowing these rights can make a difference on how the IRS attaches levys against you.

When you owe back taxes to the IRS, they do have the right to go after the unpaid amount at any manner they wish that most collection agencies could not even touch and would be illegal for most companies to try. Here are a few examples:

Wage Garnishments: The IRS can and will withhold up to 100% of your gross income. I've read all over the internet and off that claim that the IRS can only take a certain amount from your payroll check. Keep in mind that any amount is never good to be taken from check, but for the most part the norm is to leave you the taxpayer only $175.00 per pay period to live on. So, when you have a wage garnishment order against you, not only will you know about it but so will your employer and most likely the people you work with and your family.

Bank levys: Having income tax problems can lead to the most dreaded of all collection activities from the IRS, and that is the infamous bank levy. The IRS will send notice to your bank to freeze any and all monies in all your accounts that are in your social security number and name no matter where your account is located. I've seen literally 10 accounts frozen from one client who had a tax problem and the IRS found all the accounts, even the ones they had monies to cover their payroll meant for their employees. It does not matter! You need to understand that whatever you have in your account will be frozen if you have delinquent taxes owed.

Most taxpayers will suffer the utmost dramatic side of financial hardship if their tax issues are not resolved in a timely and professional matter. You can elect to handle this issue on your own or seek the advice from a tax attorney in Los Angeles to Miami Florida. It doesn't matter who you choose, but when you do finally find someone proper to represent you, make sure they know what they are doing, have the experience to handle all the issues and to keep the IRS of your back. But most importantly, you need to do your due diligence when thinking on paying a professional to get you out of this mess. You only have one time to do this right, so check your resources and then check them again. There are people that will help you, but you must first take the first step and help yourself.
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