Tax Debts
Tax debts can pose significant challenges to individuals and businesses, impacting financial stability and legal compliance. At Shield Law Group, APLC, based in Los Angeles, we specialize in guiding clients through the complexities of tax debts to ensure compliance and minimize financial repercussions.
Understanding Tax Debt
Tax debts arise when individuals or businesses owe unpaid taxes to federal, state, or local tax authorities. These debts can encompass various types of taxes, including income taxes, payroll taxes, property taxes, and sales taxes. Each type of tax debt comes with specific rules and implications for collection and resolution.
Enforcement actions for tax debts can be stringent and may include wage garnishment, bank levies, tax liens on property, and seizure of assets. Tax authorities have legal authority to enforce collection measures to recover unpaid taxes, penalties, and interest charges.
Resolving tax debts requires careful consideration of available options, such as negotiating payment plans, submitting offers in compromise based on financial circumstances, or seeking relief through bankruptcy proceedings under specific conditions.
Frequently Asked Questions
Tax Debts
How can I resolve my tax debts?
You can resolve tax debts by paying the full amount owed, negotiating installment agreements or offers in compromise with tax authorities, or exploring bankruptcy options for eligible tax debts.
What are the consequences of unresolved tax debts?
Unresolved tax debts can lead to severe consequences, including penalties, interest charges, wage garnishment, bank levies, tax liens on property, and potential legal actions by tax authorities to collect the debt.
Can bankruptcy help with tax debts?
Bankruptcy may provide relief for certain types of tax debts under specific circumstances. Chapter 7 bankruptcy may discharge eligible tax debts, while Chapter 13 bankruptcy allows for restructuring payments over time.
