Unpaid Tax Debts

Resolve Your IRS & Texas Tax Debt

If you owe back taxes, you have options. The IRS and the State of Texas have broad powers to collect—including bank levies, wage garnishments, and liens—but the law also gives taxpayers real ways to resolve what they owe. Our Dallas tax attorneys help individuals and businesses choose the right resolution and deal with the IRS so you don’t have to.

Who We Help

• Individuals and businesses with unpaid income taxes—both individual and business income tax.
• Business owners facing payroll taxes, trust fund recovery penalties, and excise taxes.
• Estates dealing with unpaid estate taxes.

As tax attorneys, we use a full range of advanced techniques to resolve unpaid taxes. If you have an unpaid tax debt, we’d like to hear from you. Call our Dallas tax attorneys at (469) 895-5141 to schedule an appointment.

IRS & State Collection Powers

The IRS and state tax authorities have broad collection powers. They can seize bank accounts, garnish wages, and foreclose on real estate—and even the generous Texas homestead exemption does not protect against tax debts. If you ignore demands for payment, the IRS generally does not have to provide further notice before resorting to enforced collection.

Bank Levies

An IRS bank levy is a letter instructing your bank to freeze the funds in your account and forward them to the IRS. Banks must comply, and the IRS can reach funds held by almost anyone—a utility deposit, an escrow company, an investment account, or a stockbroker. The best protection is to resolve your account before the IRS starts collecting. We have handled hundreds of levy-release negotiations.

Wage Garnishments

A wage garnishment, or wage levy, is a written notice to your employer to withhold a large portion of your pay and send it to the IRS. Employers must comply, and for the self-employed the IRS can levy accounts receivable. A wage levy can remain in place until the liability is paid or resolved through an installment agreement, an offer in compromise, or currently not collectible status. Acting early is the key to stopping it.

Revenue Officers

Revenue officers are the IRS’s collection officers, assigned to collect a balance as quickly as possible. They can garnish wages, levy accounts, file tax liens, and seize assets—but they must follow the statutes and regulations Congress set, including limits that protect taxpayers from undue hardship and exempt certain assets. If a revenue officer has been assigned to your case, call us so we can protect your rights and prevent inappropriate collection.

How Back Taxes Arise

Back taxes are unpaid taxes that are past due. The IRS generally assesses them in one of three ways, and it typically has ten years from the date of assessment to collect—a deadline called the collection statute expiration date (CSED).

A Filed but Unpaid Return

The most common situation: you filed your return but did not pay the balance due by the deadline. Once the IRS processes the return and assesses the balance, you owe the tax plus a failure-to-pay penalty.

Unreported or Underreported Income

The IRS receives W-2s, 1099s, and other records from employers and financial institutions. If what they show does not match your return, the IRS can amend your return to add the unreported income and assess additional tax.

Unfiled Returns

If you do not file, the IRS may file a “substitute for return” (SFR) on your behalf—usually in the light least favorable to you, reflecting a much higher tax than you would have owed. Once assessed and unpaid, that becomes back taxes too. When the IRS or state comes to collect, you need a tax attorney working for you.