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Falling behind on your taxes can trigger a chain reaction of financial stress and legal consequences. But many people don’t fully understand the IRS collection process—or how quickly things can escalate.
This guide explains what happens when you fall behind, and how to fix the situation fast with the help of Priority Tax Relief.
What Happens When You’re Behind:
- IRS Sends Notices: First, the IRS sends reminder letters and demands for payment.
- Penalties and Interest Grow: Late payment penalties and interest start accumulating daily.
- Tax Liens Are Filed: A federal tax lien can be placed on your property, affecting credit and finances.
- Wage Garnishment and Bank Levies Begin: The IRS can seize a portion of your paycheck or freeze your bank accounts.
- Property Seizures: In rare cases, the IRS can seize vehicles, homes, and other assets.
How to Fix It Fast:
- Don’t Ignore the Notices: Open every letter and respond quickly.
- Get Professional Help: Priority Tax Relief will assess your situation and identify the best resolution path.
- Apply for a Resolution Program: Depending on your finances, you may qualify for a payment plan, Offer in Compromise, or CNC status.
- File Past-Due Returns: Even if you can’t pay right away, filing your returns shows good faith and prevents further penalties.
- Request a Penalty Abatement: With the right documentation, penalties can often be reduced or removed.
At Priority Tax Relief, we act fast to prevent IRS actions and negotiate directly with the IRS so you don’t have to. Our team helps you understand your options, stay compliant, and move forward with confidence.
Frequently Asked Questions: Behind on Taxes? Here’s What Happens
How far behind on taxes before the IRS takes action?
Action can begin after a few months, but timing varies.
Will the IRS really seize my house?
It’s rare, but possible if other methods fail.
Can I negotiate with the IRS myself?
Yes, but expert help improves your odds and saves time.
What if I don’t have the money to pay?
Programs exist for taxpayers in hardship—you have options.
Can I go to jail for unpaid taxes?
Jail is rare and usually involves tax fraud, not inability to pay.
Do I need to pay off the full debt at once?
No. Payment plans and settlements are available.
