There are some people who make the mistake of going years without paying taxes to the federal government because they assume that they are one person and will fall between the cracks. This is not always the case, though. It may take many years for the IRS to determine that you have not paid taxes, but once they do, you could face serious penalties for your neglectful needs. The following guide walks you through what can happen if you avoid paying your taxes for years on end.
The IRS Can Put a Tax Lien on Your Property
When the IRS finally determines that you have not been paying your taxes for an extended period of time, they will send you notification of how much money you owe and when it needs to be paid by in order to avoid any long-term repercussions. If you do not pay the money by the time specified, the IRS can put a lien on your property.
A tax lien is a public notice that the IRS makes on your property to let other potential creditors know that they have a legal right to your property due to your failure to pay your debts. They have to do this to make sure that there are no other companies that already have a lien out on the property.
A Tax Lien Can Make Your Life Very Difficult
When the IRS puts a tax lien on your property, it can make your life very difficult. It will alert creditors that you are delinquent on your taxes, which can make it very difficult to be approved for any type of credit. It will not only affect your personal accounts, but it will also affect your business accounts if you are a business owner.
Your Property Can be Seized
If no effort is made on your part to alleviate the situation, the IRS can issue a levy on your property which means they actually seize it and take possession of the property. The IRS will sell it in an effort to get the money that you owe them.
If the IRS puts a tax lien on your properties, it is important to hire a tax professional right away to help you determine what steps you can take to get the lien lifted right away. The professional will be able to talk to the IRS directly to help to get the situation resolved as quickly as possible.