There are a number of reasons why you might have IRS tax problems. Perhaps you failed to file a return or pay your taxes on time. Maybe you underreported your income or made errors on your return. Or, you may have been audited and the IRS has determined that you owe additional taxes.
Whatever the reason for your tax problems, it is important to act quickly and intelligently. If you find yourself in a situation where you owe back taxes, it’s important to take action to avoid further penalties and interest.
Here are 10 tips for dealing with Your IRS tax problems:
1. Don’t ignore the problem. The sooner you take action, the better.
2. Get professional help. A tax attorney or accountant can help you navigate the complex tax code and negotiate with the IRS on your behalf.
3. Be honest. The IRS is more likely to work with you if you’re upfront about your tax situation.
4. Make a payment plan. If you can’t pay your taxes in full, the IRS may be willing to work out a payment plan.
5. Request an extension. If you need more time to pay your taxes, you can request an extension from the IRS.
6. Negotiate a settlement. If you can’t pay your taxes in full, you may be able to negotiate a settlement with the IRS.
7. Offer in compromise. If you can’t pay your taxes and can’t negotiate a settlement, you may be able to offer the IRS an “offer in compromise.” This is a lump-sum payment that is less than the full amount you owe.
8. Apply for hardship status. If you can’t pay your taxes and meet certain criteria, you may be able to have your taxes deferred or abated.
9. File for bankruptcy. If you’re truly unable to pay your taxes, you may be able to discharge your tax debt through bankruptcy.
10. Get help from the IRS. The IRS has a number of programs to help taxpayers who are struggling to pay their taxes.
If you’re facing IRS tax problems, don’t despair. There are a number of options available to help you resolve your debt.