The unpaid tax statistics from the IRS are shocking, and show that around 20% of federal and state income taxes are unpaid in any given year. This means that approximately $300 million dollars a year is not paid and the IRS issues around 600,000 liens for unpaid taxes each year. When the loss to all states in the USA from these unpaid taxes are calculated this means around $60 million is owed to the states including Ohio.
The information released by the IRS concerning unpaid taxes does not include personal or identifying information, or the reason why the taxes were not paid. The Internal Revenue Service is using all means available to track down individuals and companies that are delinquent in taxes and collect on these debts. This is done by using automated methods in most cases, due to funding and personnel cuts in government agencies. The automated methods used can include garnishments on wages and bank accounts, property seizures and tax liens, and other methods. First attempts to collect unpaid taxes generally result in around 10% of debtors paying off the taxes owed, and 90% unable to make this payment.
The truth is that the number of prosecutions for delinquent taxes and tax fraud are down significantly. The IRS receives almost 250 million tax returns each year, and these will typically result in less than 1,500 individuals and businesses being indicted so the percentage of prosecutions is very low. This is also caused by the changes in the law that were enacted in 1998. These legal changes were implemented to stop abuse by the IRS and makes it more difficult for the government agency to seize property.
In many cases bankruptcy can not eliminate unpaid taxes, but this is not always true. In some situations it is possible to list the unpaid tax debt in the bankruptcy petition and have this debt discharged. Every debt situation is different and unique, and the right solution in one case may be the wrong answer in another. A consultation with a debt consolidation and bankruptcy attorney can help you get the answers you need for your specific financial problems and back tax situation.
The bankruptcy attorneys at Richard West Law can help provide a free debt consolidation and legal advice to help you find the right answer for your unique debt problems and circumstances. Visit https://www.debtfreeohio.com or call (513)771-8700 or (937)748-1749 to get the answers you want, and the financial relief you are looking for.