What Makes Some IRS Debt Worse Than Other Types of Debt

Taxes seem like a sure thing. The IRS has sent you a bill that outlines the amount of taxes you owe, the interest that you owe on the back taxes, and the penalties that the agency has assessed. Yet, there is more to your tax debt than the bottom number, and the potential penalties that you face may differ between two Oklahoma taxpayers who both owe money to the IRS.

Why You May Be in More Trouble with the IRS than Your Neighbor

You and your neighbor both owe money to the IRS. Yet, you may be facing stiffer penalties or seem to haves less negotiating power with the IRS than you neighbor. Some of the things that can lead to harsher penalties and less negotiating power include:

  • The type of taxes that you owe. For example, if you own a small business in Oklahoma and you have failed to pay the “trust fund taxes,” such as social security and other taxes that you are supposed to withhold from your employees’ paychecks, then you may face different penalties and repayment options than if you owed other types of taxes.
  • The amount of back taxes that you owe. Quite simply, the higher your tax bill, the more trouble you may be in with the IRS.
  • The amount of time for which you failed to pay all of your taxes. If your tax debt is over multiple years, then you may face harsher penalties and diminished negotiating power.

However, it is important to remember that, just because the IRS says something, does not mean that it is true or that you do not have options.

Call a Norman Tax Attorney to Find Out More about Your Options

For more information about your legal options, we encourage you to contact an experienced Norman tax lawyer today at 800-721-7054 for a FREE consultation. We also invite you to read our book, The Ultimate Survival Guide for IRS Problems, which is available as a FREE download on our website.