7 Ways to Deal With Tax Debt
So you owe the Internal Revenue Service (IRS)! Besides presidents and arguably some politicians, who doesn’t? More importantly, does it really matter? When it comes time to answer to Uncle Sam why you haven’t paid your taxes, ‘he’ won’t be too sympathetic when you argue that some people don’t have to pay their taxes, so why should you? The bottom line is if the United States government says that you owe taxes, take it seriously by taking responsibility.
Here are seven ways you can deal with tax debt:
1. Don’t Ignore it. Address it Immediately
Ignoring the IRS is worst thing one can do. Even if you feel like there may be some sort of misunderstanding, the IRS doesn’t know that. All they have in their records is that you are in debt to them and if they do not receive payment or any communication from you, they will collect their money on their terms, not yours. This brings us to the next step: Call the IRS.
2. Call the IRS and Verify that Your Debt is Accurate
It’s a task that most dread doing and try to avoid at all costs, but if you have received a letter from the IRS stating that you are in debt to them, even if it’s just a small amount, it is highly recommended to call them to verify that the letter you received is accurate.
You may have heard many scary stories about hackers and scam artist. One can never be too safe when it comes to their finances. In fact, if you receive any information from any company that requires you to give them personal information, call that institution to make sure that it is legit.
3. Keep Your Tax Paperwork Organized
Calling the IRS to contest a claim of theirs means nothing if you don’t have your tax paperwork. If you neglect to catalog your tax filings, anyone—including the IRS can tell you anything about your tax situation and you will have no choice but to accept it due to lack of organization.
Keeping a record of your tax filings isn’t difficult, especially if you have a computer. Most tax filings are completed and submitted online. This means that these documents can be easily stored on a computer hard drive, flash drive, or even in the cloud for extra security. Yes, the old-fashioned method of keeping hard copies is still effective! As long as there is some record of your tax filings dating at least 5 years back, you can feel secure enough to supply any information that the IRS may request.
4. Pay It!
This is important. Whether you agree or disagree with the IRS, if they say you owe them, pay them! Neglecting to do so will result in additional charges and interests tacked onto your existing balance.
5. Can’t Afford to Pay? Make Payment Arrangements
The IRS is more than happy to garnish the wages of delinquent taxpayers. However, by simply calling the IRS and arranging monthly payments can avoid this. The IRS is more than happy to assist you with this option.
6. Hire a Tax Relief Consultant
Sometimes, one can easily get overwhelmed with the sudden responsibility of dealing with the IRS. There are several tax relief consultants that specialize in communicating with the IRS on your behalf. Paying someone to take care of your tax problems is an option!
7. Do Not Default on Your Payment
If you decided to handle the IRS personally or hire a tax consultant to handle your tax issues, it is imperative that you commit to whatever monthly amount you agree to pay. Neglecting to do so will result in voiding your agreed-upon payment arrangement and financial penalties.
We can alleviate your tax-related stress. Call us at 1-877-825-1179 or online to learn about other ways to breeze through the tax season!