How Much Tax Debt Should You Have Before Seeking Help?
In truth, there is no set dollar amount of tax debt one needs to reach before seeking the help of a tax consultant. That is kind of like waiting for the tub to overflow if you leave the water running! If you find yourself coming into a tax problem, the tell tale signs are usually there warning you that it might be time to get help.
Signs That You May Need a Tax Relief Consultant
To recognize some of the signs that one may need the assistance of a tax consultant, ask the following questions:
- Have I filed my annual taxes?
- If I filed, did I owe and did I pay?
- If applicable, did I also file my state taxes, and if so, have I paid?
- Have I kept up on any existing payment arrangements that I may have made with the Internal Revenue Service (IRS)?
If you have answered ‘no’ to any of these questions, chances are you probably owe the IRS. What’s more, is if you are delinquent in any of the above mentioned questions, the likelihood of you owing additional penalties and interest may apply.
What Should I Do?
This is usually where most people panic, as some are well aware of the consequences of delinquent taxpayers. Yet, there is no need to if you take the initiative to communicate with the IRS and let them know that you have every intention of paying your debt. Believe it or not, the IRS responds well to these types of accounts. It is the taxpayers whom outright neglect their responsibilities that the IRS tends to have a problem with, sentencing harsh consequences.
So what should you do? Communicate! First, be prepared.
First Steps to Handling Any Amount of Tax Debt
Organize Your Paperwork
It’s important to get your tax paperwork in order, in particular, the year in question. If you haven’t already received a letter from the IRS, that’s good news. That means you’re being proactive. The IRS will appreciate that. Yet, this is all the more reason to have the proper paperwork in front of you, because the IRS representative may not have the exact amount of tax dollars you owe accessed yet—this is only if you haven’t received a letter from the IRS. If you have, then it will be a matter of them pulling up your social security number.
Call the IRS
Once you have your paperwork in order, call the IRS. Yes, it is possible to email them or send them a letter, but you will get faster results—even with the hold time—and you can have the issue resolved in a few hours verses waiting weeks for a response.
Arrange a Payment Plan
Chances are if you are in debt to the IRS to the point where you need to call them, the amount owed might be too hefty to pay all at once. This is where you might be able to negotiate a monthly payment arrangement.
Call a Tax Relief Preparer
If this all still seems a bit overwhelming, another choice is to seek the help of a tax relief preparer. Success Tax Relief has been in the tax relief business, working with taxpayers for more than 30 years. Our specialty is communicating with the IRS on our client’s behalf. If you owe the IRS, we can assist you. Give us all of your tax problems by contacting us online or calling 1-877-825-1179 today.