What To Do if You Are Facing a Serious Tax Problem
Facing a potentially serious tax problem can be daunting and scary. If you didn’t file your taxes for a few years, failed to pay a tax bill, or are facing an audit, you may feel panic starting to come over you. Instead of worrying and not taking action, there are some things you can do if you have a serious tax issue at hand. Check out these tips to help you stay calm and solve your tax issue.
Don’t Ignore the Problem
First, don’t ignore your tax problem. If you’re getting letters or other correspondence from the IRS or your state tax agency, make sure you read them and pay attention to what’s happening. Ignoring the issue may make it worse and cause you even more financial distress.
Contact the IRS
Another way to help you feel less anxious about a tax problem is to face it head on and contact the IRS yourself. You can talk to a revenue agent or someone else who has knowledge of the situation to show them you’re not ignoring your issue. In most cases, the employees you talk to will be respectful and helpful and answer your questions.
File Your Taxes
Next, be sure to consistently file your taxes every year on time, even if you’ve neglected to file in the past or owe a large sum of money and penalties to the IRS. If you aren’t able to file for previous years just yet, make sure you’re staying current on your taxes from this point on. Today, filing is much easier with plenty of online options for busy people. Additionally, be sure to file on time by April 15th or ask for an extension if you need one.
Get on a Payment Plan
For individuals who owe a large tax bill to the IRS, it’s possible to break down the payments into smaller amounts. Talk to the IRS to get more information about setting up a payment plan. Understand that you will also still be responsible for late fees and other penalties despite being on a payment plan. If you aren’t able to get on a payment plan, make sure you talk to an attorney or another tax professional to get help.
It’s also essential to keep copies of all of your tax documents so you can prove anything if needed. A qualified tax professional, such as the Tax Group Center, can help you determine which documents you should make copies of if you’re facing a tax problem. It’s usually a good idea to keep any copies of your tax returns after filing, any W2 forms or proof of income, and any proof of making payments to the IRS.
Talk to a Tax Professional
One of the most important tips to help you navigate a stressful tax situation is to consult knowledgeable people in the industry, such as the Tax Group Center professionals. Simply partnering with someone who has experience helping people out of serious tax issues could give you some peace of mind.
Be on the Lookout for Scammers
The last tip to keep in mind when dealing with the IRS or other tax headaches is to make sure you don’t fall for a scam. You may feel desperate to get help over an IRS tax bill, but don’t let that make you victim to someone just trying to take your money without helping you. If someone calls you or sends you an email claiming he or she is from the IRS, be ready to check credentials before giving any personal information out.
Having a tax problem doesn’t have to rule your life and cause you undue stress and turmoil. Use these tips to get some tax relief and start fresh with the IRS.