When tax season rolls around, Pennsylvanians just like you are worrying about the possibility of debt due to tax delinquency or other tax-related problems. John A. Cochran, Esquire, is here to help if you find yourself buried under debt because of missed taxes or other tax-related mistakes and issues.
The first thing to know is that you absolutely shouldn't treat the IRS like a regular debt collection agency. They have the ability to deliver a Notice of Levy if you are in debt and haven't made any contact or tried to work out payments. The IRS has the authority to seize any of your assets, which includes retirement income, benefits, your bank accounts, wages, and more.
A Notice of Federal Tax Lien isn't quite as dire, but it's also something you want to avoid. It creates a public record, which can easily be found when you're trying to apply for credit.
Instead, look into options that are beneficial and doable for you. You may be able to set up an installation agreement, for example. This could allow you to pay off your tax debt in chunks that you find manageable. An Offer in Compromise is also possible, which allows you to settle for a lesser amount in exchange for paying it off.
If you find yourself facing the penalties associated with tax delinquency, quick action is the best action. Take a look at our web page on tax debt, which is linked here. Having the additional information can help prepare you to face the hurdles ahead.