Having unpaid tax debt is a very serious matter.
If you have failed to file or pay back taxes to the IRS or your state for previous year’s returns, then you could face severe consequences, including:
- Wage garnishment
Payments taken directly out of your work paycheck to pay off your debt – without your consent.
- Account levies
Direct debit of money from your checking, savings or retirement accounts to pay off your tax debt.
- Federal tax lien
A federal order that prohibits the sale or transfer of your home and also appears on your credit report, making it almost impossible to obtain a loan for any purpose.
- Costly penalties
Fees and compounding interest that can rapidly increase your debt even further.
Potentially huge fines for more serious actions such as delinquent payroll taxes or tax evasion, which is punishable by fines up to $10,000 per offense.
If you have significant tax debt, then you know how stressful this situation can be.
Even if the IRS has not yet begun their aggressive actions to collect your back taxes, you are probably already burdened with the thought of having debt that you are unable to pay.
However, by taking action immediately, you could get the IRS to stop harassing you, potentially lower your debt by thousands of dollars, and finally turn your situation around.
Here’s what you need to do…
Important First Steps To Relieving Your Tax Debt
STEP 1) Can you afford to pay your debt? If so, do it.
- Most people who have tax debt simply cannot afford to pay it, at least not in full. But if you can afford to pay it off without problem, and you believe your total debt amount, penalties and other IRS actions have been fair and equitable, then the quickest, easiest solution is to simply pay it off.
- Even if you move forward with a tax settlement process, you will need to show that you don’t have the means to pay your debt in full, or that the debt is due to reasons beyond your control.
- If the IRS sees that you have more than enough money to at least pay some of your debt, and that there are no other circumstances hindering your ability to pay, then you simply won’t qualify for complete relief. This is why paying off your debt is sometimes the simplest solution, for those that can.
STEP 2) Talk to a tax professional.
- Using a tax professional is crucial for any IRS issue or tax problem you are having. These experts have a deep understanding of tax laws and your rights as a taxpayer. They know exactly how to handle a wide variety of issues and can guide you through the process of obtaining relief.
- Negotiating with the IRS yourself can be difficult and is not advised. In fact, simply by failing to follow the appropriate procedures could make your situation even worse.
STEP 3) Find out which solutions are right for your situation.
It generally only takes one quick phone call to determine which types of relief you should seek. Depending on your situation, your tax consultant may recommend:
- An appeal to IRS threats of collection actions or to a previous outcome that you believe was less than fair and equitable, either through dealing with the IRS yourself or with other representation.
- An offer in compromise, which is an agreement between you and the IRS that settles your tax debt for less than the full amount owed based on your ability to pay.
- Penalty abatement, which is a reduction or complete elimination of penalties and interest that have increased your debt even higher.
- Release of wage garnishment or levy, which puts a hold on the status of collection actions, so that your wages or bank accounts are no longer being levied by the IRS to pay off your debt.
- Innocent spouse relief, which is relief for spouses who are not at fault for delinquencies that resulted from jointly filed returns.
- State tax dispute resolution, which is generally separate from IRS tax settlement negotiations.
- Payroll tax representation for businesses that have failed to properly pay the IRS for taxes withheld from employees’ paychecks.
STEP 4) Relax and finally have some peace of mind.
When you have an experienced tax professional on your side, obtaining tax relief can be a simple process that not only helps your financial situation but also relieves stress and frustration. Finally, you can have the peace of mind to move forward with your life.
Let US Tax Shield Help You with Your Tax Debt
No matter what your tax debt problem, US Tax Shield has a solution to meet your needs.
Our seasoned tax professionals and enrolled agents have years of tax resolution experience, helping thousands of clients across the United States. We have helped solve the toughest tax problems for individuals, couples, sole proprietors, partnerships and corporations – and we are committed to achieving the best possible outcome for each client’s situation.
Regardless of your situation, you have a right to professional representation, and we will help you find a tax relief solution that will remove anxiety and potentially reduce your tax debt significantly.
Contact us at 877-829-3535 for a FREE, NO OBLIGATION 15-minute consultation with a senior tax consultant.