The IRS is ramping up its enforcement efforts, and taxpayers who owe back taxes or have unfiled returns are finding themselves under increasing scrutiny. Just yesterday, I met with two taxpayers facing serious issues. One owes roughly $70,000 to the IRS, and the other hasn’t filed taxes since the start of COVID-19. He recently received a threatening letter from the IRS, reminding him that the clock is ticking.
Why Is the IRS Cracking Down?
Over the past few years, the IRS has been playing catch-up with a backlog of tax cases. With recent budget increases and more resources allocated for enforcement, the IRS is now aggressively pursuing individuals and businesses with outstanding tax liabilities or unfiled tax returns. This means that if you owe back taxes or haven't filed in a few years, you're more likely to receive collection letters, threats of bank levies, wage garnishments, and even tax liens.
What Should You Do If You Owe Back Taxes or Haven’t Filed?
If you’ve received an IRS letter or have unfiled tax returns, ignoring the issue will only make things worse. The IRS has the power to seize your assets, garnish your wages, and freeze your bank accounts. But, with the right steps, you can resolve your tax issues and avoid these severe penalties.
Here’s what you can do:
Respond Promptly – If you’ve received a notice from the IRS, don’t ignore it. Failing to respond will escalate the situation.
File Your Tax Returns – Even if you can’t pay the amount due, it’s critical to file your returns. The failure-to-file penalties are steep, and they accumulate quickly.
Seek Professional Help – Navigating the IRS can be overwhelming. With expert guidance, you may be able to settle your debt for less, set up an installment plan, or even qualify for penalty abatement.
How We Can Help
At Mathis Tax Service, we specialize in helping individuals and businesses resolve their tax problems, whether it's unfiled returns, unpaid tax debt, or receiving IRS notices. Our services include:
Comprehensive Transcript Analysis – We analyze your IRS tax transcripts to identify your liabilities, penalties, and any opportunities for penalty abatement.
Offer in Compromise – We can negotiate with the IRS to settle your tax debt for less than you owe.
Installment Agreements – If paying in full isn’t an option, we can help you set up a manageable payment plan.
Penalty Abatement – In some cases, penalties can be reduced or removed entirely, saving you thousands of dollars.
Don't Wait Until It's Too Late
The IRS is not going to slow down its enforcement efforts. Whether you owe back taxes, haven’t filed since COVID, or are receiving threatening IRS letters, now is the time to act.
Contact us today for a free consultation to assess your situation and discuss your options. Call us at (253) 327-6101, reach out on LinkedIn, or visit our website at www.mathistax.com.
Frequently Asked Questions (FAQ)
What happens if I ignore an IRS letter?
Ignoring IRS letters can result in severe consequences like wage garnishments, bank account levies, and even the seizure of property. It’s critical to respond promptly.
Can I settle my tax debt for less than I owe?
Yes, through programs like Offer in Compromise, it's possible to settle your tax debt for less, depending on your financial situation.
What if I can’t afford to pay my tax debt in full?
You may be eligible for an installment agreement, allowing you to pay your tax debt over time in more manageable monthly payments.
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