The Consequences of Ignoring an IRS Tax Notice

Although no one likes to see a tax notice in their mail, ignoring it is not the proper course of action to take. If you choose to ignore an IRS tax notice, it will definitely come with some consequences for you. Here are a few of the potential consequences of ignoring an IRS tax notice.

Substitute for Return

If the IRS sends you a tax notice and you choose to ignore it, they might decide to provide you with a substitute for return. This is a document that will be provided in order to take the place of a regular tax return. In this case, the IRS is basically calculating your taxes for you based upon previous year's tax returns and then they tell you how much money you owe. Therefore, you have no control over the deductions that they give you or how much money you owe. This is not a desirable way to have your taxes filed as the IRS will usually overestimate everything in order to make sure that they are not underpaid.

Tax Revenue Officer Visit

If you continue to ignore IRS tax notices and do not pay the taxes based upon the substitute for return, the IRS will typically send a tax revenue officer to your home. They will attempt to talk to you about your situation and let you know that you need to pay your taxes immediately. They will often ask you questions about your financial situation and whether or not you will be able to pay them soon. They may also review of further consequences that may be in store if you continue to avoid paying your taxes.

Criminal Charges

The IRS can also bring criminal charges on you for tax evasion if you continue to ignore them. This could result in you being arrested and spending time in jail until the matter is resolved.

Wage Garnishment

Once it is determined that you owe the IRS a certain amount of money, they can have your wages garnished up to a certain amount. This will result in money automatically being deducted out of your paycheck from your employer before you ever see it. This can be very crippling financially and reduce your income significantly until the debt is repaid.

Asset Seizure

In some cases, the IRS will actually seize your assets in order to repay the tax bill. The IRS has the right to seize nearly anything that they want. While certain things may be protected from bankruptcy or other similar things, nothing is safe from the IRS. If they need to seize your car and sell it in order to repay the bill, they will do so. They can even evict you from your home and sell the house if you do not comply with their requests. Therefore, if you do not want to lose valuable possessions, you need to do everything in your power to pay your taxes on time.


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