How Back Taxes May Literally Ground You

Posted by on April 5, 2016 · Leave a Comment 

Owing taxes isn’t a big deal if you work them out as soon as you realize that you owe. Often, you can pay your taxes quarterly or take a small amount in penalties for paying slightly late as long as you come to an agreement with the IRS. If you owe back taxes and they have not been worked out, this can develop into a big issue down the line. Here are some consequences which may result from owing back taxes.TaxCalculator

Getting a Lien on Your Home

Buying your home is something that you are likely proud of. The IRS can put a lien on your best possession if you do not pay your tax debts. This means that the sale of your home will result in money going into the hands of the IRS first. If your home sale is not as much as you were expecting, this can result in money still being owed after the sale of a home.

Paycheck Garnishment

Owing the government is a quick way to get your paycheck garnished. The process of getting payments garnished from the government versus private companies is much easier. If you are trying to get yourself together financially, this can cause a shutdown of any of your personal plans.

No Passport

There never used to be any issues with getting a passport due to money, other than child support cases. As of 2016, if you owe at or around $50,000 in taxes, the IRS has the ability to seize your passport. This means no more trips to see family or friends out of the country and no more overseas vacations until your tax debt has been settled.

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