Many clients ask, “I’m afraid that I’ll lose my wages or assets if I file and can’t pay, should I still file?” The truth is, filing doesn’t automatically put your money or property at risk. At Paladini Law, we help clients understand what really happens once you file and how to avoid aggressive IRS action.
Filing does not lead to instant enforcement. Before the IRS can take money from your bank account or garnish your paycheck, it must:
- Assess the tax
- Send a series of notices
- Send a final notice of intent to levy
- Give you the right to appeal
If you communicate with the IRS and work toward a resolution, you can usually prevent levies entirely.
What Happens If I Can’t Pay In Full?
Many clients wonder, “what happens if I can’t pay in full?” The IRS offers several solutions:
- Installment agreement with manageable monthly payments
- Partial pay installment agreement when you cannot pay the full balance
- Currently not collectible status when you truly cannot afford any payment
- Offer in compromise in limited situations where you qualify to settle for less
You do not have to save the entire balance before filing. Filing is what opens the door to these solutions.
What if I Can’t Afford My Tax Bill and Have Unfiled Returns?
If you’re wondering, “what if I can’t afford my tax bill and have unfiled returns?” you’re not alone. Many taxpayers face this challenge, and there’s a clear path forward:
- File the required years
- Determine your true balance
- Evaluate your ability to pay
- Choose the right IRS program based on your income and expenses
We help clients rebuild accurate returns, evaluate affordability, and negotiate terms that match their real budget.
How Much Will the IRS Usually Settle For?
Many clients ask, “how much will the IRS usually settle for?” There is no fixed percentage. Settlement through an offer in compromise depends on your:
- Income
- Allowable living expenses
- Equity in assets
The IRS calculates what it believes it can collect during the remaining collection period. That number becomes the basis for any settlement offer.
Some clients qualify for significant reductions. Others do not. The key is knowing the formula and applying it correctly.
Take Control of Your Tax Situation Today
Don’t wait until notices turn into levies. Contact Paladini Law now to schedule a consultation with a tax attorney who can help you file, negotiate, and resolve your tax issues. We’ll review your situation, explain your options, and create a plan that protects your wages, assets, and peace of mind.
