3 Tax Debt Problem Strategies to Help You Win
Tax debt problems are intimidating. It doesn’t matter if you’re just a regular person or if you’re a business owner. When you find out that you owe the IRS money, life can feel a bit more…. Stressful.
And with good reason. The IRS can levy your bank accounts, place a lien on your home, and even shut down your business. In other words, it has the power to take away everything that you need to take care of yourself and your family. If the tax debt is extremely serious, you could even face prison time.
At the end of the day, a tax debt problem does more than take away from you and your family. It also takes away from your peace of mind. It can leave you feeling totally helpless. Here are 3 tax debt problem strategies to help you win.
Gather All of Your Documentation for Income and Taxes
Before you do anything else, gather all of the documentation that you have related to your income and your taxes. Look for W-2s, 1099s, your yearly tax returns, letters from the IRS, and your bank statements for the last few years. This will help you prepare to negotiate with the IRS to either settle the debt or come up with a payment plan that you can afford.
Rely on Tax Debt Problem Experts
Always remember that you are not alone. You’re certainly not the first person to experience a tax debt problem and you certainly won’t be the last. Tax debt problem experts may be attorneys, they may be specialized CPAs who are also Enrolled Agents for the IRS, or they can even be a combination of the two. The tax code is extremely complicated and even if you know tax laws fairly well, you may not know all of the updates or any exclusions that may apply to your particular situation. A tax debt attorney can help you by working with the IRS on your behalf to negotiate a fair settlement or payment plan. They can also help you by working with the IRS to unfreeze your bank accounts, remove liens that have been placed, and help you get back to business as usual.
Tax debt problem experts such as tax attorneys perform another extremely special job. They give you peace of mind. You realize that you’re no longer alone. You’ve got someone on your side who understands tax law and who is looking out for your best interest.
Hire and Use an Accountant
When you have tax debt, it may seem like hiring an attorney is an expense that you can’t afford. However, with a good accountant, you should be able to minimize future tax debt and you should be able to establish a plan to pay off what you currently owe. An accountant can help you keep your records properly updated and can work with your tax attorney to take care of your tax debt problem.
For more information on ways to manage your tax debt issues, click here.