If you owe the IRS money, things can get pretty tough: as one of the most powerful agencies in the world, you don’t want to be in debt with them, they will do all it takes to have their money back. This can affect your life if you continue to ignore it. Here are some of the main issues you have to deal with when you have a tax debt:
The IRS will keep trying to contact you
No matter how much you try to ignore your debt or unfiled taxes, the IRS will send you monthly reminders that you should pay attention to, otherwise, the penalties will increase and your ability to pay will decrease.
After sending too many unanswered notices, your penalties can be up to 1% per month, but setting a payment agreement can drop your rate to 0.25%.
The IRS can easily seize your assets and properties
This agency takes money very seriously, they won’t stop until you pay what you owe them and if it means grabbing part of your possessions, they can and they will (they don’t even need a court order to do so).
They could take any of your business resources like cash, investments, machinery or real estate. Also, they won’t feel bad if they need to take your personal property, like vehicles, furniture and households or even your house.
It can affect your mental and physical health
The financial stress can completely turn your life into a chaos, bringing awful consequences for your emotional and vehicle physical state.
Problems like stress, depression, anxiety, drug and alcohol abuse, irritation are just a few of the outcomes that can also lead to physical issues like insomnia, high blood pressure, migraines, heart arrhythmia or insomnia.
You don’t want to keep ignoring your debt, you have to step in and call the experts, having them by your side is the right approach to solve this difficult part of your life.