What are delinquent taxes?
To put it simply, delinquent taxes refer to any amount of tax debt owed to the IRS. When there’s a delinquent account, it means the due date for the tax return or whatever established liability has passed and yet the amount owed remains unpaid. In the case that you have delinquent taxes, it’s important that you act as quickly and swiftly as possible in handling the situation, as there are major repercussions to not paying your taxes.
What happens if a taxpayer does not pay delinquent taxes?
First and foremost, penalties and interest will accrue on top of the outstanding amount. Once the IRS decides that your taxes are ‘delinquent,’ they’ll start tacking on penalties that will worsen the longer the outstanding amount remains unpaid. The order of the process then progresses if you do not pay the amount or respond to letters or notices that your account has changed to delinquent. A Revenue Agent is then assigned to your specific account and they’ll reach out to you in order to resolve the issue.
At Wasvary Tax Services we have multiple years of experience with helping our clients with tax lien situations. Our expertise can help guide you in what can often seem like a totally overwhelming, perhaps even impossible, process.