Tax notices are a form of communication between the tax authorities and the taxpayers and one needs to stay open in the communication process when the tax notice arrives. However, there are instances where one finds the tax notice at their doorstep, and they immediately get overwhelmed by the messaging of the IRS or the state tax authorities.
The common practice is to keep that away and bury it under some flower vase or other items and go into denial that one will now not face any consequences due to it. The idea of not communicating comes with a forced takedown, where the authority puts a penalty or fine on that tax file, leading to serious consequences that could’ve been solved with the right communication between the taxpayer and the authority.
- Penalties Gets Accumulated on the Tax Account
The first thing that will happen to the tax account of the person is that the penalties will accumulate, and one needs to pay along with the full tax amount. In such situations, a Ventura tax attorney or a professional from another place can provide serious help that will allow you to get a refund and reduce the penalties.
The next thing that will happen in this situation is that the IRS will quickly put on the taxes as no communication is done from the taxpayer, and therefore, with each passing day, the taxes will increase due to the rise in interest in the tax account.
- Garnishment of Wage
Responding to tax notices is important as it allows the authorities to know the incidents you are facing. It’s a great way to send them an e-mail, and there, one must state the reasons for failing to pay the taxes.
Now, once after few notices a person doesn’t respond to the tax problems or the dues that they are having, then the wage percentage will go directly to the IRS as a form of repaying the past IRS dues.
It’s known as wage garnishments, and the ones who are not in a financially stable situation can witness that there is a sudden fall in the income from their job. Thus creating a lifestyle problem for the person.
- Tax Liens from the Authority
Tax liens are more effective than tax levies from the perspective of the authorities. Here, the tax liens situations are faced by those who have multiple years of debt accumulation. In this situation, the government can seize some of your physical assets without your permission and can use that for the debt repayment strategy.
A person needs to stay in constant communication with the IRS about the reasons why they have missed the earlier tax repayments and can negotiate for time when they can manage to bring more amount and pay the tax debt.
A tax resolution attorney can help in this situation to negotiate the total penalties and can settle with the IRS on many different terms to provide their client with some relief from all the past tax repayments along with a hefty fine.
These are some of the severe consequences one can face when one starts to ignore the IRS or state authority’s tax notice.
