Falling behind on paying one's state taxes can have many consequences for an individual. For one, it could lead to them being assessed various fees and penalties. These fees and penalties can end up adding up to some pretty big amounts.
Currently, the main party that a taxpayer who owes a federal tax debt has to deal with is the Internal Revenue Service. However, it is possible that in the not too distant future, such taxpayers could end up facing dealing with a different sort of party: private debt collectors.
It is a word that can instantly fill a U.S. taxpayer with anxiety: audit. Tax audits are one of the many things the Internal Revenue Service uses as part of its tax enforcement efforts. Being audited by the IRS can be a worrying and intimidating experience.