If you owe the IRS, some amount of fear and panic is understandable. After all, the Internal Revenue Service wields the power of the United States federal government, something no other debt collector can claim. They are considered the most brutal collection agency in the world.
It is easy to freeze and just do nothing when you owe back taxes to the IRS, but hiding from, or doing nothing about your tax liability will not help. In fact, ignoring the IRS will only make the situation worse, since interest and penalties add up quickly. You also risk having your paycheck garnished (the IRS does not need a court order to do this) or your bank account levied. They can also file a Notice of Federal Tax Lien making it practically impossible to obtain financing for a car or home.
So instead of panicking about your tax debt and hoping the problem will just go away, you need to take some proactive steps. Now is not the time to panic and hide – now is the time to take action.
Some of these steps will likely require the assistance of an experienced tax resolution expert. Here are some of the steps you can take now to get a handle on your tax debt. If you need help resolving your IRS tax problem, Contact us now! We help people with IRS problems every day.
Confirm the Amount Owed
When you owe back taxes, one of the first things you should do is to determine if you actually owe the money. The IRS has been known to make errors, lots of them, and is far from foolproof. Contact the IRS, or have us do an IRS transcript analysis to determine the amount that you actually owe.
Seek Out Deductions You May Have Missed
At the very least, you may owe less than you think, and each dollar you can eliminate from the bill is a dollar in your favor. Now is the time to carefully scrutinize your past and current tax returns, looking for missed deductions and credits.
Unless you are a seasoned tax expert, you will probably need some professional assistance to do this. If you are already working with a CPA or tax pro, you can have them look at your past tax returns, but only a tax resolution expert, who helps people like you every day, can protect your income and assets throughout this process.
If you missed any deductions or credits, your tax professional can file amended returns to lower your tax debt – and possibly eliminate it altogether. However, you can usually go back only 3 years to amend returns.
Is there a Special Resolution Option You May Qualify For?
The bad news is the IRS wants its money and they posses the power to collect it.
The good news is, that they also offer several programs that can help taxpayers make repayment less painful. If you qualify, the IRS may even settle for less, possibly much less, than you owe.
These programs are not available to everyone. If you have the resources to pay your entire tax liability, the IRS is unlikely to give you much of a break, but you may qualify for some other resolution option such as an installment plan which will allow you to pay what you owe over time. On the other hand, if we can show the IRS that you don’t have the resources to pay in full, they will most likely accept an Offer In Compromise and settle for less than you owe.
The first step in the process is determining which programs you might qualify for, and that will likely require the help of an experienced tax resolution expert. Most CPAs and tax pros do not have this experience. Negotiating with the IRS is never easy, and you may need help to drive the best bargain and reduce your back taxes. In the end, it may be well worth paying a tax relief expert to negotiate on your behalf, especially if you end up with a much lower tax bill. Most of my clients also feel relief to know their case is in the hands of an expert who will fight vigorously for them, and from knowing they will never have to talk to the IRS once I represent them.
It is easy to panic when you owe the IRS, but you should not let fear get in the way of solving your situation. The longer you ignore the problem, the worse it will get, and the sooner you act, the better off you, and your finances, will be. There is a solution to every IRS problem. Let us see what IRS tax debt settlement programs you qualify for today. Contact us now!
