Unpaid Taxes

Protect yourself from IRS penalties, tax liens, and levies by resolving unpaid taxes with strategic legal representation.

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What Are Delinquent Taxes?

Delinquent or unpaid taxes refer to any liability that remains outstanding after the due date, whether from the current tax year or previous years. This occurs when a taxpayer fails to pay the full amount owed when filing a return, misses required tax payments such as estimated or withholding taxes, or has an IRS audit adjustment that increases their balance. When taxes remain unpaid, penalties and interest accrue, and the IRS may take collection actions, including liens, levies, or wage garnishment.

Tax Lawyer Near you

Five-Star Rated Tax Resolution Services

At J. David Tax Law, our experienced tax attorneys specialize in resolving unpaid taxes, back taxes, and delinquent tax issues, helping taxpayers regain control of their financial future. With four decades of collective experience, we have successfully represented clients across all 50 states, offering strategic legal solutions to reduce tax debt, prevent IRS enforcement actions, and secure favorable resolutions.

  • Legal Strategies for Tax Debt Resolution

We assess whether the IRS has followed proper legal procedures and identify violations or miscalculations that may allow for tax relief. Our tax lawyers negotiate Installment Agreements, Offers in Compromise (OIC), and Currently Not Collectible (CNC) status, ensuring you receive the best possible resolution.

  • Comprehensive IRS Representation

We handle all IRS communications, audits, and appeals, ensuring you never face the IRS alone. Our attorneys are skilled in negotiating with the IRS to prevent further enforcement actions and resolve your tax liabilities efficiently.

  • Immediate Action to Stop IRS Collections

If you owe unpaid taxes, the IRS can take serious collection actions. Our tax attorneys take swift legal action to halt enforcement, filing Collection Due Process (CDP) appeals, Collection Appeal Program (CAP) requests, and penalty abatement petitions to protect your assets and financial stability.

  • A Trusted and Proven Tax Law Firm

As an A+ BBB Accredited business with over 500 five-star reviews, J. David Tax Law has a national reputation for successfully defending taxpayers against IRS enforcement. Our award-winning legal team has helped thousands of clients secure tax relief.


The Difference Between Unpaid Taxes, Back Taxes & Delinquent Taxes

Tax liabilities fall into different categories depending on their status with the IRS. While these terms are often used interchangeably, each carries specific implications under the Internal Revenue Code (I.R.C.), affecting how the IRS enforces collection actions and the legal remedies available to taxpayers.

  • Unpaid taxes refer to any outstanding tax liability paid by the due date. This can include current-year tax obligations and past-due amounts that have not yet escalated into formal IRS collection efforts. Although unpaid taxes may not immediately result in aggressive enforcement, they begin accruing penalties under I.R.C. § 6651(a)(2) and interest under I.R.C. § 6601

  • Back taxes refer specifically to unpaid tax liabilities from prior tax years. When taxes remain unpaid beyond the initial due date and are carried over into subsequent years, they are considered back taxes. Back taxes are more likely to attract IRS enforcement actions, including tax liens under I.R.C. § 6321, wage garnishments under I.R.C. § 6331, and bank levies under I.R.C. § 6332. The IRS may also escalate collection efforts through direct contact with Revenue Officers or the Automated Collection System (ACS). 

  • Delinquent taxes are back taxes that have progressed to active IRS enforcement due to prolonged nonpayment. Once the IRS deems a tax debt delinquent, the taxpayer is at significant risk of forced collection actions, including asset seizures and passport revocation under I.R.C. § 7345. The IRS may issue a Final Notice of Intent to Levy, signaling imminent action against wages, bank accounts, or property. In some cases, delinquent tax matters may be escalated to litigation, further limiting resolution options. 

Penalty Abatement Requirements

How Our Tax Debt Relief Process Works

Free Consultation

We begin with a free, confidential consultation to assess your unpaid taxes, review IRS notices, and determine the best legal strategy for resolving your tax debt.

Investigation

Our IRS attorneys conduct a detailed review of your IRS account, obtaining tax transcripts to identify balances, penalties, and enforcement risks.

Expert Negotiation with the IRS for Abatement of Penalties

Depending on your financial situation, we work directly with the IRS to implement the most effective tax resolution strategy.

Resolution & Future Tax Compliance

Once your unpaid taxes are settled, we help you implement long-term tax strategies to stay compliant, prevent future tax debt, and protect your financial stability.

Free Consultation

We begin with a free, confidential consultation to assess your unpaid taxes, review IRS notices, and determine the best legal strategy for resolving your tax debt.

Free Tax Relief Consultation
Eligibility for tax debt relief

Investigation

Our IRS attorneys conduct a detailed review of your IRS account, obtaining tax transcripts to identify balances, penalties, and enforcement risks.

Negotiation & Tax Relief Strategy

Depending on your financial situation, we work directly with the IRS to implement the most effective tax resolution strategy.

IRS form submission & debt negotiation
tax debt resolution

Resolution & Future Tax Compliance

Once your unpaid taxes are settled, we help you implement long-term tax strategies to stay compliant, prevent future tax debt, and protect your financial stability.

tax attorneys specializing in tax debt relief

Unpaid taxes bring liens, penalties, and IRS action. J. David Tax Law is here to protect you and your assets.

How Does J David Tax Law Help with Unpaid Taxes?

Unpaid taxes can quickly escalate into a serious financial and legal threat, leading to compounding penalties, interest accrual, and aggressive IRS enforcement actions. The IRS can place a federal tax lien on your property, restricting your ability to sell or transfer assets. In severe cases, delinquent tax debt may also trigger passport revocation or referral to the IRS Criminal Investigation Division.

At J. David Tax Law, our experienced IRS Lawyers intervene before IRS enforcement escalates. We conduct a comprehensive IRS account analysis, obtain tax transcripts, and review compliance records to develop a legally sound resolution strategy. Our tax law firm negotiates IRS payment plans (I.R.C. § 6159), Offers in Compromise (I.R.C. § 7122), and CNC status to reduce or eliminate tax liabilities. If penalties have been assessed, we pursue Penalty Abatement under I.R.C. § 6404, leveraging legal arguments based on reasonable cause or IRS procedural violations. Our tax lawyers take immediate legal action for taxpayers facing active collection by filing appeal requests, challenging improper enforcement, and securing relief.

What Does Unpaid Tax Apply To?

Unpaid taxes can arise from various tax obligations, affecting individuals and businesses. The IRS imposes penalties and interest on unpaid tax liabilities, making it essential to understand which taxes are at risk if left unresolved. Whether it’s income tax, payroll tax, or excise tax, failing to meet payment obligations can lead to enforcement actions and potential jail time.

Unpaid Income Tax

Unpaid federal and state income taxes occur when an individual or business fails to pay the full amount owed on their tax return. This includes underpayment of self-employment tax, capital gains tax, and alternative minimum tax (AMT).
The IRS charges penalties and applies interest, compounding daily until the balance is paid. Our IRS tax attorneys can negotiate a payment plan to reduce your tax liability.

Unpaid Payroll Tax

Businesses that fail to remit payroll taxes (Form 941 or Form 940) face severe consequences, including the Trust Fund Recovery Penalty (I.R.C. § 6672),
which holds business owners personally liable for unpaid employee withholdings. The IRS aggressively pursues unpaid payroll taxes, often resulting in business bank levies, asset seizures, or forced closures. J David tax law defends business owners against personal liability.

Unpaid Excise Tax

Excise taxes apply to specific goods and services, including fuel, alcohol, tobacco, and transportation. Businesses subject to Form 720 excise tax obligations may face penalties if these taxes are improperly reported and paid.
Unpaid excise tax can result in IRS audits, fines, and potential license revocations for regulated industries. Our legal team challenges audit assessments, negotiates penalty reductions, and helps businesses regain compliance with IRS regulations.

Unpaid Corporate Tax

Corporations must file Form 1120 (C corporations) or Form 1120-S (S corporations) and fully pay their tax liabilities. If a company fails to do so, the IRS can assess unpaid corporate tax penalties,
file tax liens against business assets, and restrict financial operations until the balance is settled. Contact us to learn more!

Frequently Asked Questions

Your Unpaid Tax Relief Questions, Answered

Tax attorneys, CPAs, and enrolled agents specialize in resolving unpaid taxes through legal and financial strategies. A tax attorney is best suited for handling IRS negotiations, appeals, and legal disputes. Enrolled agents and CPAs assist with tax compliance and filing issues. Legal representation is essential if your case involves tax liens, levies, or litigation. J. David Tax Law provides professional tax defense and resolution services to protect your assets.

Resolving multiple years of unpaid taxes requires a thorough IRS account analysis to determine penalties, interest, and collection risks. Options include Installment Agreements, Offers in Compromise, or obtaining Currently Not Collectible (CNC) status. Penalty relief may be available under I.R.C. § 6404 for reasonable cause. Filing delinquent returns under the IRS Voluntary Disclosure Program can mitigate enforcement risks. Consulting a tax lawyer ensures compliance while securing the most favorable resolution.

Unpaid taxes accrue interest and penalties, increasing the total balance owed. The IRS may file a federal tax lien, restricting asset sales or credit access. If enforcement escalates, bank levies and wage garnishments may be imposed. The IRS can also seize assets or revoke passports under I.R.C. § 7345 for serious delinquency. If you have unpaid taxes, Call us at (888) 789-5011 for a free consultation and expert legal assistance. 

Back taxes are a form of unpaid tax debt that remains outstanding from previous tax years. While unpaid taxes refer to any balance not paid by the due date, back taxes specifically apply to past-due obligations carried over from prior years. These unpaid balances accumulate failure-to-file, failure-to-pay penalties and interest over time, increasing the total amount owed. If left unresolved, back taxes can lead to serious consequences. Addressing back taxes promptly is essential to preventing IRS enforcement and reducing financial strain.

The IRS generally has a 10-year statute of limitations (I.R.C. § 6502) to collect unpaid taxes, starting from the assessment date. However, this period can be extended by bankruptcy proceedings, collection due process appeals, or IRS agreements. There is no limit for assessing tax if a fraudulent return was filed under I.R.C. § 6501(c). Unfiled tax returns have no expiration for IRS enforcement. Understanding collection limits and legal options is very important for tax resolution.

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Trusted by Clients, Recognized by Experts

We provide tax solutions for our clients who have IRS and state tax debts, unfiled returns, audits, etc. We advise you on future compliance that enables your individual or business tax problems to be behind you for good.