These 5 Types of Tax Debt Can Ruin Your Finances

4 min read
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Don’t let tax debt hold you down.

Owing taxes can be intimidating and stressful. Anthem is here to provide you with expert tax debt relief.
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Tax debt can creep up on you when you least expect it. Maybe you missed a payment here or there, or perhaps the numbers just didn’t add up the way you thought they would. If you're not careful, certain types of tax debt can snowball and do some serious damage to your finances. Let’s break down five types of tax debt that can put a major strain on your wallet and why you need to pay attention before they get out of hand.

Income Tax Debt

When you owe taxes on your earnings and haven't been able to pay, the IRS is quick to pile on penalties and interest. This type of debt can escalate fast and become overwhelming if you don't take action.

Self-Employment Tax Debt

If you’re a freelancer or own a business, self-employment taxes are your responsibility. Without the automatic withholding that comes with a traditional job, it’s easy to fall behind — and the IRS isn’t known for its leniency.

Back Taxes

If you didn’t file a return for previous years or missed payments on your taxes, you could be facing back taxes. The longer it takes to address them, the more you’ll owe in penalties, interest and potential legal fees.

Don’t let tax debt hold you down.

Owing taxes can be intimidating and stressful. We’re here to provide you expert tax debt relief.
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Student Loan Tax Debt

If you’ve defaulted on federal student loans, the government can seize your tax refund as a form of repayment. This unexpected financial hit can come at the worst possible time, especially if you rely on that refund to pay for expenses.

Property Tax Debt

Failing to pay your property taxes can lead to serious consequences. Unlike other types of debt, neglecting your property taxes puts your home at risk, since it gives the government the legal authority to seize it through tax foreclosure.

How to Get Out of Tax Debt

Drowning in tax debt? There’s a path forward. Many taxpayers may qualify for installment agreements, in which the IRS allows you to break up your payments over time, or offers in compromise, which could reduce your total bill. These solutions can provide some much-needed relief, but applying can be tricky.

For many, partnering with tax relief providers like Anthem Tax Services makes the process easier. These professionals negotiate with the IRS on your behalf, potentially lowering what you owe, eliminating penalties or setting up a repayment plan that works for your budget. If you’re unsure where to begin, or are feeling paralyzed by IRS paperwork, an experienced provider can help ease the burden.

Owe money to the IRS? Anthem's tax experts help you tackle IRS debt so you can be stress-free.
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*Anthem offers a money-back guarantee designed to help you avoid wasting money on ineffective tax services. They will gather as much information from you as necessary and work with tax authorities to give you the best chance of reducing your tax debt. If for any reason that does not work out, and the government notifies them that they refuse to reduce your overall tax liability or monthly payments by any amount, they will refund you the fees you paid for their services in trying to reduce that debt. The Money Back Guarantee does not apply to Bookkeeping and Tax Preparation Services.

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