No one likes to pay taxes, but it is our responsibility as American citizens to know and abide by all established 税法, regardless of whether they are state, local, or federal. If this process is completed properly, one can avoid the burden of having 滞納税. Back taxes result from the ignorance, whether intentional or unintentional, of taxpaying obligation. In some cases of 滞納税, such as 脱税, such ignorance is intentional. In other cases, such as those that result from minor errors on a 税務申告書, 滞納税 result from an unintentional discrepancy between a 納税者 and the government. Sometimes, the 納税者 will notice that they owe 滞納税 when reviewing their 税務申告書 or when preparing an amendment to a previous year’s 税務申告書. Sometimes, IRS will determine the amount of 滞納税 owed based on a random audit. Whichever the case, 滞納税 must be taken care of immediately in order to prevent further penalties such as interest and 税務上の先取特権. Tax lawyers are especially helpful in determining the best course of action when it comes to 滞納税. They can even help with the reduction of 滞納税. In certain circumstances, 税務弁護士 can even make it possible to get rid of 滞納税 without paying a dime.
Taxpaying responsibility, although often complicated, can be summarized with a few sentences. If a 納税者 follows these basic rules, they should not have to worry about 滞納税. To avoid 滞納税, as well as the penalties that come with them, one must generally:
- Fill out 税務申告書 accurately (know your 税法).
- Pay taxes on time (and if not, then pay 滞納税 as soon as possible).
- Take care of any discrepancies, whether positive or negative, immediately.
- It is important to file returns because it helps determine whether too much or too little has been paid. The respective party must be compensated, which may result in 滞納税 for the 納税者.
- If a 納税者 discovers they have a negative balance of taxes owed (i.e., taxes already paid are greater than taxes owed), then they qualify for a tax refund.
- If there is a positive balance of taxes owed (i.e., taxes owed are greater than taxes already paid), and this balance is not taken care of immediately, the 納税者 will have 滞納税.
Other processes such as IRS の税務調査 can reveal that there were more taxes than originally estimated. This also results in 滞納税. Once discovered, 滞納税 are expected by IRS to be paid immediately.
SPECIFIC CAUSES OF BACK TAXES
Failure to file a 税務申告書
There are many ways to incur 滞納税. Failure to file a 税務申告書 is one of many causes of 滞納税. Even though 税務申告書 are not technically required to be filed, most individuals choose to do so in order to double check previous tax payments. Therefore, filing a 税務申告書 often causes an individual to correct mistakes made from previous tax payments. If a 納税者 does not file their return and later discovers the error, then they owe IRS 滞納税 and must pay these 滞納税 immediately or risk legal action. The worst possible scenario occurs when an individual neither pays their taxes /unfiled-returns/nor files a return. Major instances of this scenario result in an extremely serious problem (especially when it is a reflection of generally fraudulent behavior). When an individual blatantly stops paying their taxes, they have a different problem entirely. Minor instances of this scenario, however, generally result in 滞納税 amounting to the payment that is owed to IRS. As long as these 滞納税 are dealt with promptly, they are not problematic. If an individual waits too long, however, they will receive many phone calls and notices in the mail that demand accountability for the 滞納税. Another scenario that can result in 滞納税 occurs when an individual does not file the return because they do not think it is necessary. If it turns out that it was indeed necessary to file the return, they will be penalized in addition to owing the 滞納税. Individuals who have their taxes automatically deducted from their paycheck may believe that a 税務申告書 is pointless. This is especially true for 納税者 who believe they do not qualify for any deductions. Unfortunately, by ignoring the 税務申告書, the individual may be missing out on potential tax refunds. Or, even more unfortunately, the individual may be building up 滞納税 without knowing it. Furthermore, on top of the 滞納税 owed, the 納税者 is also responsible for paying various fees for turning in a late 税務申告書.
Audits
An audit by IRS may also lead to 滞納税. An audit occurs when a professional representative from IRS reviews whether an individual has fulfilled their taxpaying obligations. This occurs in approximately 1% of submitted 税務申告書. In many cases, IRS may assess 滞納税 that are owed as a result of discrepancies found in an individual’s 税務申告書. In other words, an individual may have underestimated the amount of taxes that they owed. Upon discovering the 滞納税, IRS immediately contacts the individual to demand prompt payment of the balance. The individual must pay the 滞納税 or serious consequences will happen
Even if one believes they are experts in 税法 and competent at filing their returns, they are still prone to common mistakes that lead to the assessment of 滞納税. Such miscalculations in 税務申告書 occur for many reasons. Transcription errors (truncating or adding a digit) can make a large impact on taxes paid. Although most notice such errors before submitting returns, a few of these errors persist. An IRS の税務調査or would quickly assess 滞納税 based on an omitted digit in a large deductible. Another common error detected by an audit is that the 納税者 failed to correctly categorize a particular deducted expense. Even if the individual who filed the 税務申告書 disagrees with the auditor’s opinion, they are obligated to abide by his or her demands and pay 滞納税. Therefore, after an audit demands the replacement or removal of a deduction, 滞納税 are immediately incurred. Various other misunderstandings result in the assessment of 滞納税 once a return has been audited.
Inability to Pay
Sometimes, 滞納税 result from an individual’s inability to pay their tax expense. This applies mostly to individuals who do not have their taxes automatically deducted from their paychecks. Those who must pay a sum of money all at once may find themselves in an unexpected situation that takes priority over paying taxes. Sometimes, emergencies require 納税者 to use some of the money originally set aside for taxes. For a lot of individuals, waiting to pay taxes all at once turns up to be a lot more overwhelming than initially anticipated. This applies especially to individuals who lack responsibility to set aside money to be used on paying taxes later. Whatever the case, such individuals are not excused from paying their taxes. Instead, the amounts that they would normally pay become 滞納税. These 滞納税 must be paid as soon as possible to avoid fees and other consequences.
If one finds themselves in a position in which they are unable to pay their taxes (or 滞納税 for that matter), it is often useful to have a consultation with a 税務弁護士 who can reasonably estimate the appropriate amount and timing of future payments to take care of their new 滞納税. Tax lawyers are also useful in reducing or, in rare cases, eliminating the amount due from 滞納税. Although simple research can effectively add to an individual’s capabilities to tackle 滞納税, it is best to seek the advice of a legal professional. Rather than taking time to filter through information about 滞納税, an individual can contact a law professional and get direct straightforward answers quickly.
CONSEQUENCES OF BACK TAXES
The Difference Between Major and Minor Tax Negligence
First, it is important to note that the term “滞納税” is generally NOT meant to describe fraudulent or serious criminal behavior, although individuals who intentionally do not pay taxes could be considered to have a large amount of 滞納税. If a 納税者 is found guilty of this crime (willingly neglecting taxes) or other related 税務詐欺 crimes, then they have entirely different problems to deal with which may include jail time. Fraudulent behavior includes serious circumstances in which an individual neither pays their taxes nor files their 税務申告書. The consequences for such individuals, however, are different and will not be discussed here.
Those who simply owe 滞納税 due to reasons other than evasion and related crimes, on the other hand, have much less severe consequences. These consequences can have a large impact on the finances of an individual. Sometimes, they can be quite devastating, especially if 滞納税 have been neglected for too long of a period of time. Therefore, 納税者 must quickly determine what they owe in 滞納税 and when they can pay it. There are various levels of financial penalties related to 滞納税, depending on severity. In most cases, this is the only kind of action that IRS will take on an individual regarding 滞納税. It would be rare for someone to have to face jail time due to minor 滞納税.
Penalties must be avoided at all cost, as it naturally adds to the burden already caused by the build-up of 滞納税; an individual may unfortunately find themselves responsible for not only the original tax payment, but also for several penalty fees caused by lack of promptness. The optimal situation to make sure an individual never has penalties, of course, would be to take care of 滞納税 the moment they are discovered. Unfortunately, immediate payment is not always possible and IRS will assess a fee as a result. This fee is in addition to any of the 滞納税 that are owed.
These penalty fees all depend on whether or not you have fulfilled responsibilities related to 滞納税. This section will discuss the most common penalties, such as the one that may be assessed if an individual has 滞納税 and did not file a return for that year. Another example would be the fact that interest is accrued on the amount of 滞納税 owed. Various other penalties encourage 納税者 to stay on top of the game when it comes to paying their 滞納税.
Failure to File Penalty
One penalty is called the “申告書の未提出 penalty”. In spite of what the name implies, this does not always occur for those who choose not to file (although this is the common case). Those who would have received refunds as a result of filing their 税務申告書 receive no penalty other than the lost refund. For the most part, however, 税務申告書 recognize money that is owed to the government (滞納税) rather than the other way around. So if an individual fails to file their return and they end up owing money to the government, penalties on top of the 滞納税 are assessed. This may sound unreasonable at first, but such a policy encourages individuals to file their 税務申告書 on their own, or at least consider their tax expenses, so that the government does not waste too much of its own time determining the amount owed for each individual. The more proper 税務申告書 there are, the less likely it is for 滞納税 to exist.
This penalty can be very costly, especially in situations where a large amount of 滞納税 are owed. Furthermore, for every month that the 税務申告書 has not been submitted, a penalty fee is incurred. This penalty increases each month until it reaches its maximum. Waiting too long to file a late 税務申告書 could have devastating effects on the amount the 納税者 must deduct from their paycheck to give to the government due to 滞納税 and other penalties.
The penalty is normally calculated by taking five percent of 滞納税 owed for each month they are unpaid. For example, submitting a return two months late would result in a penalty equal to ten percent of the 滞納税. The maximum penalty allowed on the national level for the 申告書の未提出 a 税務申告書 is twenty-five percent of the 滞納税. Therefore, if an individual submits his or her 税務申告書 five months after it was originally due, they must pay the maximum penalty. This amounts to the original 滞納税 plus an additional twenty-five percent of the unpaid tax money.
Failure to Pay Penalty
There is also a “未納 penalty”. This is different from the filing penalties, which merely deal with timing and promptness. The “未納 penalty”, on the other hand, deals with the question of whether or not the actual 滞納税 have been paid. Paying for 滞納税 immediately prevents any of these penalties from being assessed. For every month that 滞納税 are unpaid, however, there is a penalty fee equal to half of a percent of the amount owed. For example, if an individual waits eight months to pay their 滞納税, they also owe an additional four percent of the amount due. This penalty increases each month by half of a percent until the 滞納税 have been taken care of. Unfortunately, there are no maximums for this type of penalty. The penalty keeps building up along with the 滞納税 until the individual is overwhelmed in debt.
Interest
In addition to all of these penalties and fees, there is one other important consideration that has not yet been discussed: the amount of interest that has accrued on their 滞納税. During the time that the 滞納税 have not been paid, IRS charges interest since 滞納税 essentially operate as a loan. An individual is “borrowing” by taking money that should have been reserved for paying taxes and investing it elsewhere. Naturally, IRS feels obligated to charge an additional fee for interest on 滞納税 in the same way that banks and other agencies do. These rates of interest for 滞納税 change approximately four times a year and end up typically being close to four percent.
With lawyers, you may end up paying less for penalties derived from 滞納税. Back taxes are already annoying as it is: why intensify the situation with further penalties and fees, especially when using an alternative form of payment (such as a credit card) would have helped the situation? Interest rates can be higher than they appear after considering each penalty for “taking out the loan” for an additional period of time. Consider this scenario to illustrate the point. An individual who is six months late for filing their 税務申告書 is already responsible for all of these payments: the 滞納税, 申告書の未提出 penalty of twenty-five percent of 滞納税, a 未納 penalty of three percent of 滞納税, and interest of two percent of 滞納税 (for half of the year). The stated interest of the 滞納税 is only two percent. The “true interest” of neglected 滞納税, however, is essentially all penalties put together (in this case, thirty percent), as this is the expense incurred for “borrowing” the money owed.
Alternative measures can be taken to counter the payment of “interest” on 滞納税. For example, even if a credit card does not offer the most competitive interest rate, it would be much better to owe an awful twenty-two percent on the credit card rather than thirty percent of 滞納税. Therefore, anticipation is an absolutely necessary tool. If one knows they need extra time to pay their 滞納税, they should consider options that result in less financial obligation so that they can have more money for themselves.
If an individual owes 滞納税 and believes they may be unable to pay, they must immediately seek help to ensure the eventual payment of the financial obligation. The most professional and knowledgeable assistance comes from 税務弁護士, who can help with strategies regarding the payment of 滞納税. They can realistically help an individual anticipate when they will be ready to pay 滞納税 and subsequently recommend the best course of action.
Normally, IRS continues to charge fees until the balance is paid. Like 滞納税, such fees can build up fast and must be prevented. It may be somewhat comforting to know that it is rare to be placed behind bars as a result of not paying 滞納税. However, in cases of extreme negligence or evasion, some individuals may have serious charges placed against them if they go a few years without paying their 滞納税. This mainly deals with those towards the top of the income bracket who are responsible for knowing how to manage their money and how to pay their taxes. Regardless of social background, one must still take care to pay taxes properly to prevent any kind of consequence. Although it will not normally get a 納税者 locked away in prison, the ignorance of taxes is a slippery slope that results in burdensome financial obligations.
Tax Liens
After an individual consistently neglects 滞納税 and their associated penalties, IRS may choose to take further action. They may choose to perform a 税務上の先取特権, which basically gives the government the right to have an individual’s property as a result of them being unable to pay taxes. This only occurs after IRS has already contacted the individual to inform them of the balance owed as well as the due date. Once IRS determines the individual has ignored their 滞納税 for long enough, they issue the 税務上の先取特権 as a consequence. An individual gets rid of a 税務上の先取特権 by paying the original balance due. On top of having property controlled by the government, an individual who has been given a 税務上の先取特権 will find it more difficult to maintain a high credit.
Tax Levies
Sometimes, however, IRS determines that it must take further negative action to recover the money lost from 滞納税. A 税務上の先取特権 can only give the government title to the property while the original owner still benefits from its use. If a 納税者 continues to neglect 滞納税, IRS may choose to levy the property. This means that the government will come in and take away the property of the 納税者 as a means of payment. Since this gives IRS an immense amount of power, it is only reserved for the most severe cases of 滞納税. Therefore, a thirty-day final notice must be given before the levy is able to take place.
This is essentially the absolute worst thing that could happen to a 納税者. The IRS is given complete control over what they want to take and what they want to control. They could choose to take a car or a home entertainment system. After taking the property, they determine its value and apply it towards the 滞納税. Furthermore, IRS can take items beyond the property located in the 納税者’s residence. It can be granted access to bank accounts and company paychecks. It can even take a loan out against an individual’s life insurance policy to make sure the 滞納税 are paid. Only after the payment of 滞納税 will IRS release the levy. If they are lucky, the 納税者 can then recover most of the items that had previously been taken by IRS.
These consequences all have a large impact on a 納税者. They should not be taken lightly. Back taxes must be paid for immediately to avoid these penalties. In the most extreme cases, IRS could come in and take most of a 納税者’s property. Whatever the case, whenever IRS takes action on 滞納税, it is not usually very pleasant.
Paying off Back Taxes
There is only one easy way to make 滞納税 go away, and it’s pretty straight forward: be responsible with calculating taxes and take care of all discrepancies immediately before penalties are assessed. It sounds like the obvious solution, but many 納税者 allow their 滞納税 to build up because they place their priorities elsewhere. This only ends in further misery and financial struggle. To avoid 滞納税, it is imperative that 納税者 properly calculate the amount they owe without making any mistakes with their deductions. Tax returns should be turned in on time so that no further penalties come from an audit that reveals mistakes. Once notified of 滞納税, an individual must do everything they can to pay it immediately. Neglecting to pay 滞納税, which is normally a relatively small amount, can result in a plentitude of financial stress and turmoil. Back taxes must therefore be near the top of an individual’s priority list when it comes to paying for financial obligations.
Installment Plans
One possible method that many individuals use to pay off 滞納税 involves requesting a system of installment payments. As the title implies, 納税者 who do not want to pay 滞納税 all at once may instead do it over a certain period of time.
Naturally, this means an individual will have to worry about 滞納税 for longer than usual, but it is a valid option for 納税者 with limited amounts of cash. It is better to take this action than it is to completely ignore 滞納税. On top of that, 支払い計画 can be tailored to fit individual needs. Taxpayers who have a low budget can secure some of their funds by choosing to participate in an installment plan. As long as taxes are paid according to this plan, IRS will be happy and there will be no 滞納税 assessed.
Reducing Back Taxes
The IRS is notorious for intensely collecting money from 納税者 and penalizing those who do not pay. It is easy to assume that they do not allow any negotiation and simply demand each payment. However, in certain circumstances, IRS may choose to, or be obligated to, somehow reduce 滞納税 that are owed. If an individual feels as though they must reduce the amount of their 滞納税, consultation with a 税務弁護士 would provide quick and easy potential solutions. When this is not possible, however, there are a few options that can be explored to reduce 滞納税.
Offer in Compromise
As discussed above, IRS may be willing to compromise. Believe it or not, IRS is sympathetic to the unexpected turns that life can take. If an individual presents a legitimate reason for being unable to pay their 滞納税, IRS will often begin a negotiation with the 納税者 to see how much they can pay. Sometimes, the remaining amount is forgiven. If there has been some sort of emergency or obligation that requires financial attention, IRS is willing to compromise as long as the request is reasonable. The IRS does not give much attention to petty or unnecessary requests merely due to the fact that the individual does not want to pay. Instead, each 納税者 must take responsibility to pay their 滞納税 before penalties are assessed.
Once again, should an individual choose to pursue such a route, it is very beneficial to contact a 税務弁護士 with expertise in negotiation. Such 税務弁護士 have a general feel for what IRS will listen to. The 納税者 (or, as the case may be, “no-tax-payer”) must first decide for himself or herself whether or not their excuse is legitimate enough to garner sympathy from the somewhat strict IRS. If the excuse is reasonable, the individual must determine how to present their excuse in a manner that induces IRS to reduce the payment. Tax lawyers know exactly how to present situations so that IRS feels obligated to reduce 滞納税. If the 納税者 is successful at compromising with IRS, then a portion of their 滞納税 will be “forgiven”. They are still responsible for future tax payments that are incurred.
Chapter 7 Bankruptcy
Another factor that can cause IRS to reduce the amount of 滞納税 owed concerns Chapter 7 Bankruptcy. This kind of 破産 is generally reserved for individuals who are so overwhelmed in debt that they are willing to give up most of their assets in exchange for a “clean slate”. It is not to be confused with the similarly popular Chapter 13 Bankruptcy, which extends, rather than forgives, the amount of time to pay a loan. Under Chapter 7 Bankruptcy, many kinds of small debts, such as credit card debt and 滞納税, are forgiven. Unfortunately, only essential assets, such as real estate and necessary tools or equipment, are granted to the individual who has declared 破産. Although it is not the preferred way to remove 滞納税, Chapter 7 Bankruptcy is definitely an effective tool when worst comes to worst. And the best part? As soon as the individual files, collection agencies are not allowed to harass the 納税者 anymore, which means the number of calls a bankrupt individual must ignore sharply decreases. To choose this option, however, an individual must be willing to give up some very precious assets. Once the court has determined the requirements, the individual will not have to worry about the 滞納税 in question ever again (unless, of course, the individual incurs 滞納税 after declaring 破産). If they are willing to endure the cost, a 納税者 should take this route to take care of their outstanding 滞納税.
Due to the nature of declaring Chapter 7 Bankruptcy, or any kind of 破産 for that matter, it is important for 納税者 to hire a 税務弁護士 so that they can keep as much of their property as possible while simultaneously getting rid of debt caused by 滞納税. It may initially appear to be counter-productive, but a lawyer can secure the elimination of 滞納税 so that they will never have to be worried about again. A lawyer may also be able to have a better negotiation in which the 納税者 walks out with more of their property intact.
Waiting 10 Years
Believe it or not, an alternative way to get rid of 滞納税 is to wait ten years. The law actually mandates that 滞納税 disappear after ten years. Of course, there are negative penalties, such as 税務差押え and other side effects, that accompany this option. Remember: IRS can still collect on an individual’s property based on taxes owed. Therefore, waiting ten years to get rid of 滞納税 is rarely considered the best choice. However, in some circumstances, 滞納税 are best taken care of in this manner. For example, if an individual is considering 破産 but has 滞納税 that are almost ten years old, they may be able to avoid the disadvantages of 破産 by waiting for the 滞納税 to be cleared. However, such circumstances are uncommon and it is best to consider other options before waiting ten years to get rid of 滞納税. Consultation with a 税務弁護士 would definitely give more insight into whether or not waiting ten years is the best option.
For those who are already planning to eliminate 滞納税 by waiting ten years, a word of caution: there are some exceptions to the rule. An example of this occurs when a 納税者 has submitted a 税務申告書 past the due date. Whenever this happens, the ten year period may be renewed under certain circumstances. Therefore, when consulting with a lawyer in such circumstances, 納税者 must make sure the lawyer is fully qualified to deal with such exceptions to 滞納税. A 納税者 must always be confident that their particular situation does not qualify as an exception. If a 納税者 expects their 滞納税 to go away after ten years, when in reality they do not, they could face serious financial problems.
結論
Back taxes are most definitely a hassle to deal with, but they can also be avoided if 納税者 pay proper attention to compiling and adhering to their 税務申告書. If 納税者 remember to fill out their 税務申告書 accurately and to turn them in on time, they should have no problem. If there is an error, however, and 滞納税 are assessed, they must be prepared to pay immediately. Failure to turn in the 税務申告書 can result in 滞納税. Audits also reveal some otherwise hidden 滞納税. Neglecting 滞納税 can result in various consequences, such as “未納 penalties” “申告書の未提出 penalties”, interest expenses, 税務上の先取特権, and 税務差押え. Those concerned about 滞納税 can apply for installment plans to extend the payment period. The IRS will compromise and forgive certain debts depending on each situation. Bankruptcy can eliminate back 税務上の債務 and, although it is not normally recommended, waiting ten years generally makes 滞納税 disappear, although there are exceptions.
With all of this information in mind, 滞納税 become much less intimidating.
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Beware of firms that offer free services. Offers of substantial free work often times provide inferior quality or are merely efforts to “rope” clients in and then obligate them for much greater fees later. Choosing an attorney is like choosing a doctor – Quality Matters!!