What to Do When You Have Tax Problems with the IRS

You can’t avoid to pay taxes. No matter your financial situations, you need to file your taxes on time. If you don’t file and pay your taxes on time, you will receive heavy penalties. If you are not well financially the tax debt can grow, and the IRS may even proceed to take enforcement tax collection actions such as assets seizure, among others. To help you avoid bigger problems, here are 5 things to do when you have tax-related problems with the IRS.

First, accept you have a tax problem

If you really want to solve your tax problem, be it debt or any other, you need to accept that you have a problem. If you ignore the issue, the IRS will not. If you don’t pay your returns on time, the IRS will impose a late file filling penalty of tax owed every month, up to 25% of the balance. This will make your tax debt to grow, making the problem more complex. If possible file for an extension to clear your tax bill.

File a payment plan

The IRS all they want is you to pay what you owe. Therefore, they give tax payers a chance to pay their huge tax bill in installments. But you must negotiate with the agency and respect the payment plan, or else things will get worse for you. You can file the installment payment plan online or visit their offices, and they will approve it. If you owe less than $10,000, you can easily file your payment plan with the IRS.

Explain your financial situation

Depending on your financial situation, you can qualify for tax relief. Although the IRS rarely forgives tax debts, if you are facing serious financial challenges, the agency can forgive your tax debt. Tax forgiveness is meant for families or individuals who have lost income and can’t be able to fully pay their taxes. You can apply for an “offer in compromise”. This will allow you to pay less tax than what you owe, if you qualify.

Get help from a legal or tax expert

If you have a huge tax bill, maybe over $10,000, you need a tax expert or lawyer to help you negotiate for a payment plan with the IRS. An experienced tax attorney will help you get better terms. This will help you avoid a tax lien or other enforcement collection actions.

Corporate with the IRS

If the IRS wants you to file a payment plan to clear your tax liabilities, you should not ignore them. You should respond to their mails, and even provide all the statements or any other information they need to assess your financial situation. You can get lucky to get a tax relief if you corporate or get a favorable tax debt payment plan.

Final Words

If you don’t want to have complex problems with the IRS, you should file your tax returns on time. Additionally, if you are not in a position to file your tax returns on time, file for an extension. Also, if you have complex tax problems, hire an experienced tax attorney or tax expert to help you.