Definition Of IRS Debt

Although most Americans, and some legal working immigrants, know what a tax bill is, sometimes they aren’t sure what exactly an IRS (Internal Revenue Service) debt is and how to defend themselves against that IRS debt.

First off, the Internal Revenue Service is the agency responsible for taxation in America. The IRS was founded in July 1862 to pay war expenses. Income taxes are responsible for paying a whole host of government operating expenses and programs.

IRS debt is simply the amount of taxes owed to the Internal Revenue Service that you cannot pay. Perhaps you have been experiencing financial troubles and just can’t afford the tax bill when it comes due. For others, you may have been avoiding the tax bill for some time for any variety of reasons.

One thing to note is that even if you owe and cannot afford to pay for the debt, it is far more important to file your taxes and not pay than to not file at all. About.com offers some advice for those in the situation of having a late tax return or unpaid return. If you have a balance due on a late tax return, the IRS will calculate additional penalties and interest.

 There are three separate IRS penalties:

• Failure to File Penalty
• Failure to Pay Penalty
• Interest

The Failure to File “penalty is 5% for each month the tax return is late, up to a total maximum penalty of 25%.” The Failure to Pay penalty is “0.5% for each month the tax is not paid in full. There is no maximum limit to the failure-to-pay penalty.” Interest is currently the “IRS interest rate for underpayment of tax of 5% per year.”

MSN Money also states, “Your return is done -- that's how you know the magnitude of your debt. Send it in. Don't hold it just because you owe money that you can't pay.

You can't go to jail because you don't have the money to pay your tax bill, but you can go to jail for not filing. It's a criminal act, and you're not a criminal, so get that return in the mail.”

It is important to speak with an experienced tax attorney who specializes in tax law before making any hasty decisions. Whocanisue.com can help you find an experienced tax lawyer in your area to assist you with the complicated tax laws and IRS tax relief options.

What is a Federal Taxation Levy?
According to Flixya.com, “A Federal taxation levy is the capture of your holding or bank story by the IRS to gratify a taxation liability. Having an IRS levy placed on your holding or bank story can be financially and emotionally devastating for a tiny job proprietor or household. If you go no activity, the bank is required by police to suspend your assets and offer command to the IRS. When that happens, your holding will be foreclosed, or your bank story seized.”  You don’t want to get to this point with your tax debt.

Defending Against IRS Debt - Tax Attorney
In order to have an adequate IRS debt defense, you will want to seek assistance from an experienced tax attorney. The tax lawyer should specialize in working out settlements with the IRS and helping its clients receive the best possible outcome for their situation. Since one method of collection the IRS has at its disposal is wage garnishment, it is advisable to contact a tax lawyer right away when you are experiencing tax payment problems.

Bills.com defines IRS debt as “Many people struggle with back taxes, unfiled tax returns, or audit penalties, all of which produce IRS debts they simply cannot afford to pay.” When this occurs, it really is in your best interest to seek the professional advice of an experienced tax attorney. The lawyer can work on your side to find the best possible resolution to your specific situation.

whocanisue.com can help you find an experienced financial attorney in your area to assist you with the complicated nuances of tax law and the decisions that will affect your financial life for some time.