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Tax Problems

Understand the Tax Problem Before Choosing a Path

Start with the issue, then review notices, risks, options, and when professional help makes sense.

Risk: Moderate

Back Taxes

Unfiled or unpaid tax balances from prior years can lead to notices, penalties, liens, levies, and enforced collection.

Risk: Moderate

IRS Tax Debt

IRS debt can involve individual income taxes, business taxes, penalties, and collection action after assessed balances remain unpaid.

Risk: High

Wage Garnishment

A wage garnishment can require an employer to send part of your paycheck to the IRS or a state tax agency.

Risk: High

Bank Levy

A bank levy can freeze and seize funds from an account after required notices and collection steps.

Risk: Moderate

Tax Lien

A tax lien is the government's legal claim against property when a tax debt is not paid.

Risk: Moderate

Penalties and Interest

Tax penalties and interest can grow quickly when returns are late, payments are missed, or payroll taxes are unpaid.

Risk: Moderate

Late Tax Returns

Late or missing tax returns can trigger substitute returns, inflated balances, and enforcement.

Risk: High

Payroll Tax Debt

Unpaid payroll taxes are treated seriously because they include withheld employee funds and can create business and personal exposure.

Risk: Moderate

Offer in Compromise

An offer in compromise may allow eligible taxpayers to settle for less than the full balance based on ability to pay.

Risk: Moderate

Installment Agreement

An installment agreement allows a tax balance to be paid over time when immediate full payment is not realistic.

Risk: Moderate

State Tax Debt

State tax agencies can use payment demands, liens, levies, refund offsets, and business enforcement when balances remain unpaid.

Risk: Moderate

Unfiled Tax Returns

Missing returns can block IRS resolution options and may lead to substitute returns or inflated balances.

Risk: High

Tax Liens

A tax lien can affect property, financing, and public records when a federal or state tax debt is not resolved.

Risk: High

Tax Levies

A tax levy is enforced collection against wages, bank accounts, receivables, or other property.

Risk: Moderate

IRS Audit

An audit asks the taxpayer to prove items reported on a return. Deadlines and records matter.

Risk: High

Trust Fund Recovery Penalty

The trust fund recovery penalty can create personal exposure for responsible people connected to unpaid payroll taxes.

Risk: High

Business Tax Debt

Business tax debt can involve income tax, payroll tax, sales tax, withholding tax, and urgent cash-flow decisions.

Risk: Moderate

Expat Tax Problems

U.S. citizens abroad may need to address late returns, foreign reporting, FBAR issues, IRS notices, and filing compliance.