The federal government depends heavily on income taxes for its continued operation, and that is not about to change anytime soon. Because collecting taxes is so important to the government, it has empowered the Internal Revenue Service with many tools for use in its corresponding activities.
While most taxpayers submit their taxes regularly and on time, others can find themselves falling behind. That can end up contributing to problems of other kinds that arise as the IRS intensifies its focus on collection. By working with specialists like BC Tax Colorado business owners and individual taxpayers can often untangle such issues and avoid unnecessary complications.
Audits, Penalties, Liens, and Worse
While the IRS can be relatively easy to work with when things remain routine and on track, it becomes a much more dangerous foe for those whose situations deviate at all from the norms. In particular, IRS actions including the following can cause real problems:
- Audits that are conducted as a result of mistakes having been previously discovered can add significantly to a taxpayer’s tab. In some cases, tax liabilities might double or inflate even more drastically, with nothing else having changed in the meantime.
- Penalties which are imposed because of underpayment of past due taxes can also end up being extremely costly. Although there are statutory limitations on the penalties the IRS can impose, these allow the agency quite a bit of potentially troublesome latitude.
- Liens can tie up property and other important assets, making it difficult or impossible to liquidate them or obtain loans. Once again, the IRS regularly uses this tool to encourage taxpayers to settle up their bills, and the pressure that results can be difficult to grapple with.
Effective Assistance with Any of a Wide Range of Tax Problems
What often makes issues like these and others so challenging to deal with is the fact that few people are well equipped to confront the IRS on their own. Fortunately, this should almost never be necessary, as there is plenty of useful, effective assistance to be had. For those who seek out and make use of this kind of support, tax troubles can easily and quickly become things of the past.