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Why Taxpayers Who Owe Over $50K Need To Make Their Peace With IRS Tax Liens

IRS Tax Liens for Taxpayers Who Owe Over $50K

Owing over $50,000 to the IRS can be an overwhelming and frightening experience. The fear of aggressive IRS actions, mounting penalties, and interest can cause significant stress. However, addressing large tax debts is crucial, and seeking expert help from a San Diego tax attorney, such as those at Dallo Law Group, can make a substantial difference in navigating these complex issues.

The Impact of Tax Liens on Personal and Financial Life

When you owe money to the IRS, one of the most significant repercussions is the imposition of a tax lien. An IRS tax lien is a legal claim against your property due to unpaid tax debt. This can severely affect your credit score and report, making it challenging to secure new lines of credit or loans. Additionally, a tax lien can complicate efforts to sell or refinance your property, as the lien must be resolved before such transactions can proceed. The financial strain and stress of dealing with a tax lien can be immense, underscoring the importance of addressing these debts promptly.

Why Taxpayers Owing More Than $50,000 Should Be Concerned

Taxpayers who owe over $50,000 to the IRS face increased scrutiny and potential for more aggressive collection actions. The IRS may take steps such as levying bank accounts, garnishing wages, or seizing assets to recover the owed amount. Large tax debts also accumulate significant interest and penalties, compounding the financial burden. For instance, one of our clients faced a $75,000 tax debt that ballooned to over $100,000 due to accumulated interest and penalties before seeking our assistance.

Penalties for Owing $50,000 or More to the IRS

Owing a substantial amount to the IRS can result in several severe penalties, including
  • Failure-to-File Penalty: Charged for not filing your tax return on time.
  • Failure-to-Pay Penalty: Imposed for not paying your tax debt by the due date.
  • Interest on Unpaid Taxes: Continues to accrue until the debt is paid in full.
  • Accuracy-Related Penalty: Applied for underpaying taxes due to negligence or disregard of IRS rules.
These penalties can significantly increase your total debt, making it even more challenging to resolve.

Can You Appeal a Tax Levy?

Yes, you can appeal a tax levy. A Collection Appeal Request (CAP) allows you to appeal the levy within 21 days of receiving the notice. However, navigating this process can be complex, and it is advisable to consult a tax relief attorney. At Dallo Law Group, we have extensive experience in handling CAPs and can guide you through the appeal process to potentially reduce or remove the levy.

How to Pay Off $50,000 or More in Back Taxes

There are several options available to taxpayers seeking to pay off large tax debts:
  • Streamlined Installment Agreement: For taxpayers who owe less than $100,000.
  • Installment Agreement: Allows for monthly payments to settle the debt over time.
  • Partial Payment Installment Agreement (PPIA): For taxpayers who cannot afford full payments.
  • Offer in Compromise (OIC): Settles the debt for less than the full amount owed.
  • Payment Plan for Higher Business Taxes: Specific plans for business-related tax debts.
Each of these options has its own eligibility criteria and application process, which a tax attorney can help you navigate.

Proactive Steps to Resolve Large Tax Debts 

Early intervention is key to managing large tax debts effectively. Seeking legal advice from a tax attorney can provide you with a clear understanding of your options and the best course of action. Proactive steps include setting up payment plans, negotiating offers in compromise, and communicating with the IRS to resolve your tax issues.

Contact Dallo Law Group Today!

For expert assistance in resolving your IRS tax liens and other tax issues, reach out to the Dallo Law Group. Our team of dedicated tax attorneys is here to provide you with the support and solutions you need.
Dallo Law Group is here to provide you with the expertise and support you need to navigate your tax challenges effectively. Don’t let tax debt overwhelm you—contact us today and take the first step towards resolving your tax issues.