Many people have lost property in IRS seizures because they ignored tax debt. If you feel that you are in a position whereby your tax debt keeps increasing, and you have no idea how to deal with the problem, you should hire an expert to help with tax relief in Brooklyn. Here are some of the important things to know about tax debt.
The repercussions of ignoring tax debt
As mentioned, it is very wrong to keep procrastinating dealing with your tax debt. If the IRS catches you with tax debt:
- They will find a way to take money directly out of your paycheck.
- They can file a tax lien against you, your property or business. When a tax lien is registered on your credit record, it becomes impossible to get credit assistance of any kind from lending institutions. This can be detrimental to your business.
- The IRS can take money from your bank account. They can also do wage garnishment to recover their debt.
- As you continue postponing paying your tax, the tax will keep growing and attracting interest and penalty fees. This deepens your financial troubles. For instance, penalties can be up to 25 percent of the sum of money owed in tax. This means that a small tax debt can become a serious debt issue within no time.
- You may end up in prison. If it is proven that you have been deliberately evading paying tax, the IRS can prosecute you. Upon conviction, you will be required to pay tens of thousands of dollars in fines and at times you may even end up spending time in jail.
Solving the problem
Above are reasons you should seek tax relief assistance as soon as you discover that you are having tax issues. The tax consultants will help you do an audit of the amount of tax that you owe and come up with a repayment plan. They will also help you learn the tips that could be of great help when it comes to tax relief.
These are important things that you should know about getting Tax Relief in Brooklyn. Click here to read more about tax and the process of getting ahead of the tax debt.
