The issue of back taxes can get out of hand quickly. When you find yourself owing taxes to the IRS and/or State, it’s easy to get overwhelmed with how you’re supposed to get it all fixed. Here are a few tips:
- It’s important to deal with these matters sooner rather than later. Whether you have already received a notice from the IRS or state, or if you are just trying to get ahead of it, now is the time to act. Any taxes owed will continually accrue penalties and interest until the issue is resolved. You could also be at risk for garnishments, levies, and liens.
- Don’t let your tax problem continue to grow. Identify the cause of your tax issues and address it for the current tax year – adjust your withholdings, begin remitting estimated tax payments, etc. – so when it comes time to file and pay this year’s taxes next year, you don’t owe any overdue taxes. Staying “current” with your tax obligations from this point moving forward will be crucial to the successful resolution of your back tax issue.
- If you may not owe back taxes but aren’t sure because you do owe the IRS and State back tax returns, get those returns filed! Taxpayers have a legal obligation to prepare and file accurate and complete tax returns. Though it may be daunting, it’s time to start gathering the necessary documents. Keep in mind that hiring a qualified Tax Professional can make this process a lot less time-consuming and overwhelming for you. We also recommend taking the time now to implement a system for tax recordkeeping moving forward. Organizing all your relevant documents throughout the year will go a long way towards making things less stressful when it comes time to file. Depending on the complexity of your tax situation, this could mean creating a spreadsheet, investing in bookkeeping software, hiring a Tax Professional to keep up with your accounting needs, or placing a folder in an easy-to-access area so that any time you receive important documents by mail, you can add them to your folder.
- Don’t find yourself doing nothing because you aren’t sure what to do about a tax balance you cannot pay. Know that there are options such as installment agreements, offers in compromise, currently-not-collectable statuses, penalty abatements, and more. Again, it is important to remember that both the IRS and State can take actions like suspending your driver’s license or placing a lien on your assets until the debt is paid. So don’t wait!
Are you struggling with a tax issue? Unsure where or how to start? Tax issues are legal issues and will not go away on their own. Contact Bryson Law Firm, LLC today to schedule a free, initial consultation to discuss your path forward.