How to Know if You Have Tax Debt

1. How to Know if You Have Tax Debt For those Americans who owe money in back taxes, one of the first ways that they are going to find out about this tax debt is through a bill from a tax agency. If you do not pay the bill in the time that is required in the documents, this same agency could take further steps to collect on this bill, such as taking a tax lien against you. Taxes can be confusing to many clients, which is why understanding where to find out what you owe is so important. The first steps that you should take for dealing with your taxes are to determine if you are the one who owns them. There are times when the information may be mixed up, or a scammer is out to get your money, and the debt has nothing to do with you. Knowing how to check on this debt will ensure that you are not being charged money that has nothing to do with you. Federal Taxes Take a moment to look to confirm if you owe any money in federal taxes. Federal taxes would come in the form of Social Security taxes, Medicare, and income tax. To determine whether this is the tax debt that you are dealing with, call a free number provided to the IRS. You will give this number a call and provide a bit of personal information, such as your Social Security Number and your personal filing status for the years in question. With this information, the agency will be able to tell if there is any outstanding debt owed to the federal government. For some people, another method that works better than sitting on the phone to the IRS is to fill out a Request for Transcript of Tax Return to the right department. This document can help because it will show all of the taxes that you owe as well as any payments and the adjustments that have been made on your account for the past three years. If the debt is over ten years old, it is not likely that the agency will be able to collect on it. In most cases, the IRS will have ten years to collect what is due after assessing the liability. In the cases of civil tax fraud, there is no statute of limitations so the IRS can sue you at any point. Knowing which kind of debt is present will make a difference on when and how much they can collect on. Local and State Taxes State and local taxes can collect on you as well. Examples of state and local taxes include personal income, corporate income, and other income you make where you live. Each state has different rules concerning how they handle taxes. For example, some states do not collect personal income tax so this would not be an issue in your location so receiving information about missed income debt in taxes would immediately be a scam. Check with your local state agency to ensure the debt is legitimate and the regulations for paying it back. Tax Liens In some cases, when you do not pay your taxes back, the government can place a legal claim against some of your property including financial assets and real estate. This lien states that your personal

2. property will be the collateral for your debt until you can pay it off. To determine if you have a lien, either state or federal, against your property is to have your credit report checked. Contact any of the options above to check this out as well. Determining if you have a tax debt can help you to be proactive and get the help that is needed before the situation gets more out of hand. Call the lawyers at Gordon Law Group if you have dealing with a tax debt. The lawyers at Gordon Law Group and the experience necessary to help you find out if the debt is yours and will give you the representation to help when you need. CONTACT US (Open 7 Days for Calls) 180 N. LaSalle Street, Suite 3700 Chicago, IL 60603 Local: (312) 608-2772 Referral Link: https://www.chicagotaxlawyerfirm.com/tax-debt/