This year was not a fruitful one, I am afraid. You did not make nearly as much money as you would have liked. As such, the IRS did not take enough money, and you now owe them more than you could even think about earning. What do you do? If you file anyway and suffer the consequences, turn to page 14. If you opt not to file your taxes and just hope that they do not notice, turn to page 27. If you decide to knock over a liquor store for the extra dough, stop reading right now and seek professional help.
The economy is up and down all the time. Its unpredictability is what makes it so exciting to play the stock market, but so difficult to run your own business and hope to turn a profit all of the time. I guess the market for busts of former presidents made from fungus cultures was just not a booming one this year. But, no matter your monetary or business situation, the IRS still expects you to pay. The best audit defense is to make enough money and pay your taxes, obviously. But that does not always work out.
Help with back taxes penalties is just a phone call away, however. A tax lawyer can offer you the help with back taxes and any other advice and information that you may need concerning IRS debt settlements, tax penalty abatement, and even how to stop wage garnishment. Wage garnishment is when you are unable to pay back taxes, and therefore the government takes matters into their own hands, by taking the money from your pay your earned pay before you even get the check. Think of it as child support, but your child is the IRS.
With garnishment, your employer is legally obligated to withhold those earnings from you by a court order or other equitable procedure, all as part of the payroll process. If wage garnishment looks to be something that may be in your future, do not worry just yet. The IRS is not able to just automatically start pulling from your paycheck. They have to give you notice and time so that you are given the opportunity to make payment arrangements.
One last option for help with back taxes are the Effective Tax Administration offers. Those are only an otion if you are ineligible for an offer in compromise because of Doubt as to Liability, or Doubt as to Collectability. Before any of this can be determined, however, you must file your taxes. Even if you do not have the money, you need to file those taxes, because not filing will get you in even more trouble than just owing money. Read more here.