What to Do If You Owe Back Taxes in New Jersey
What to Do If You Owe Back Taxes in New Jersey
Owing back taxes is one of the most stressful financial situations you can face. Whether it’s a result of filing late, underreporting income, or struggling with cash flow in your business, the fear of IRS letters, penalties, and enforcement actions is real — and justified. Ignoring tax debt won’t make it disappear. In fact, even a small balance can grow quickly through interest and fines, leading to wage garnishment, frozen bank accounts, or even the loss of your home or business.
If you're in Hackettstown or anywhere in New Jersey and you owe back taxes, know this: you have options — and the sooner you act, the better your chances of resolving the issue without devastating consequences.
โ ๏ธ Step 1: Don’t Ignore IRS Notices
The IRS sends multiple letters before taking action — but once a lien or levy is issued, it’s much harder to reverse the damage. Each notice contains crucial deadlines, appeal rights, and warnings. Missing a deadline can mean losing your ability to contest the amount owed or delay collection activity.
If you've received a letter from the IRS (or the New Jersey Division of Taxation), open it, read it carefully, and contact a tax attorney right away.
๐ Step 2: Understand the Consequences of Inaction
Owing back taxes isn’t just a paperwork issue. It can quickly snowball into serious financial and legal consequences, including:
- Tax liens against your home or business
- Bank account seizures (levies)
- Wage garnishment
- Driver’s license or business license suspension
- Damaged credit and public tax judgments
The IRS has powerful collection tools, and the longer you wait, the fewer options remain available to reduce or manage your tax debt.
โ Step 3: Know Your Legal Options
Depending on your situation, you may qualify for one or more tax resolution strategies:
- Installment Agreements – Affordable monthly payments over time
- Offer in Compromise – Settle your tax debt for less than the full amount
- Currently Not Collectible Status – Temporary pause in collections based on hardship
- Penalty Abatement – Reduce or eliminate interest and late penalties
- Innocent Spouse Relief – If the debt was caused by your spouse’s actions
These aren’t one-size-fits-all solutions. That’s why personalized guidance from a qualified tax attorney is essential.
๐งพ Step 4: Work With a CPA + Attorney Who Understands Both Sides
At The Law Offices of Jonathan Stone, we don’t just dabble in tax law — we focus on it. Attorney Jonathan Stone is a licensed CPA and experienced tax attorney, giving you a powerful advantage when negotiating with the IRS or New Jersey Division of Taxation.
We’ve helped individuals, families, and small business owners resolve complex tax problems involving:
๏ปฟ
- Back taxes
- IRS liens and levies
- Payroll tax issues
- Unfiled returns
- Audits and disputes
๐ Get the Tax Help You Need Today
You don’t have to face the IRS alone. The sooner you act, the more options you may have — and the better chance you’ll have at keeping your assets, credit, and peace of mind.


