Most people are required to pay taxes on the income they earn during the year. If you owe income tax, the Internal Revenue Service expects to receive payment in full by April 15th of the following year. Unfortunately, some people aren’t able to pay their tax bills on time. When this occurs, you may experience a variety of Las Vegas tax problems that make your life much more difficult.
You may start receiving tax notices from the IRS, and they may even begin taking some of your wages or other assets. You may also notice a drop in your credit score. Fortunately, effective solutions to Las Vegas tax problems are available.
About Las Vegas Tax Problems
If you don’t pay your taxes on time, the IRS will send you a bill for the amount you owe soon after you miss the due date. They will also add penalties and interest to your tax bill, which will continue to accumulate over time if you don’t pay the bill.
After the IRS sends you a bill, you will have 10 days to send in your payment before the IRS will begin collection. At this time, the IRS will usually establish a federal tax lien against you. This lien will allow the IRS to seize any property you own currently, as well as any property you acquire in the future. The IRS will also be able to garnish your wages, take money out of your bank account and take any tax refunds you may receive in the future. In addition, the federal tax lien will appear on your credit report, which may affect your ability to qualify for loans and other types of credit.
The IRS can continue trying to collect an unpaid debt from you for up to 10 years from the date you filed the tax return in question. This period is known as the “statute of limitations”.
Solving Las Vegas Tax Problems
If you have tax problems in Las Vegas, you need to take action as quickly as possible to resolve them. Otherwise, the balance you owe will continue to increase, and the IRS will continue attempting to collect from you in any way they can. Fortunately, a variety of different types of tax relief are available to people who owe debts they can’t pay.
If you think you can pay your tax debt back over time, you may be able to establish an installment agreement with the IRS. Under this type of agreement, you will make payments toward your balance each month until it is paid in full. If the IRS agrees to let you pay your debt under an installment agreement, they won’t try to collect from you in other ways as long as you comply with the terms of the agreement.
Another way to deal with tax problems is to delay the collection process. This is an ideal solution if you aren’t able to pay your tax debt currently but may be able to pay it in the future. To qualify for this type of tax relief, you must convince the IRS that you can’t currently afford to pay the debt you owe. If the IRS agrees, they will mark your account as “currently non-collectible.” However, this status isn’t permanent. If the IRS later determines that you have the resources to pay your back taxes, they will resume their attempts to collect from you.
Offer in Compromise
One of the quickest ways to eliminate the full amount of debt you owe and stop all collection activity from the IRS is an offer in compromise. With this type of tax relief, you will pay a portion of the amount you owe and the IRS will mark your account as paid in full. However, the IRS doesn’t accept every offer made. In order to have your offer accepted, you need to offer the IRS enough money based on your ability to pay. In general, the IRS will accept an offer in compromise if they wouldn’t be able to collect any more from you on their own within the time that remains on the statute of limitations.
In some circumstances, you may simply be unable to pay your tax debt. If this is the case, you may have other debts you are also unable to pay. To get relief, you may consider filing for bankruptcy protection. If you file Chapter 7 bankruptcy, you will liquidate your assets, pay as much of your debts as possible and discharge the remainder. If you file Chapter 13 bankruptcy, you will pay all of your debts according to a court-approved payment plan.
Not every taxpayer will be able to discharge unpaid federal income taxes in bankruptcy. In order to qualify for this solution, you must not be guilty of tax fraud or tax evasion. The debt must also be related to a tax return that was due at least three years before you attempt to discharge it in bankruptcy.
Other solutions may also be available to some people with tax problems in Las Vegas. For example, if you had a significant financial hardship or another valid excuse for failing to pay, the IRS may be willing to reduce some of the penalties you owe. If you can show that the IRS has assessed tax against you unfairly or inaccurately, you may be able to reduce your tax liability with an IRS tax appeal. You can learn more about these other solutions by working with an experienced tax relief professional.
Comparing Solutions to Las Vegas Tax Problems
Every Las Vegas tax problem is unique. When looking for the right solution, it is important to consider every possibility and compare your options carefully. If you aren’t sure which solution is best for your needs, consider hiring a Las Vegas tax relief professional to help you deal with this situation. With the help of the right professional, you will be able to understand all of the options available to you and select the best course of action.
At Tax Samaritan, We Rescue Troubled Taxpayers
Click the button below to request a Free Tax Debt Analysis today to get started with the resolution of your Las Vegas tax problems and learn about your options.
Tax Samaritan is a team of Enrolled Agents with over 25 years of experience focusing on US tax preparation and representation. We maintain this tax blog where all articles are written by Enrolled Agents. Our main objective is to educate US taxpayers on their tax responsibilities and the selection of a tax professional. Our articles are also designed to help taxpayers looking to self prepare, providing specific tips and pitfalls to avoid.
When looking for a tax professional, choose carefully. We recommend that you hire a credentialed tax professional such as Tax Samaritan that is an Enrolled Agent (America’s Tax Experts). If you are a US taxpayer overseas, we further recommend that you seek a professional who is experienced in expat tax preparation, like Tax Samaritan (most tax professionals have limited to no experience with the unique tax issues of expat taxpayers).
Randall Brody is an enrolled agent, licensed by the US Department of the Treasury to represent taxpayers before the IRS for audits, collections and appeals. To attain the enrolled agent designation, candidates must demonstrate expertise in taxation, fulfill continuing education credits and adhere to a stringent code of ethics.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.