Avoiding Tax Debt: 10 Tips

When it comes to stressful life events, owing money to the IRS ranks up there as one of the most stressful. “Death and taxes,” as they say, are inevitable. You can’t avoid filing them or paying them, and you certainly want to come to tax resolution as soon as possible once you discover you are in debt to the IRS. Here are ten tips to avoid being in the line of fire with the IRS.

you can’t avoid the IRS once there is a problem. They IRS will not forget them, of that you can be sure. It might be tempting to ignore Taxes and fees can quickly escalate to out of control levels so it’s best to open and address letters from the IRS as soon as they are received. In addition to opening and reading the letters, make certain before you are properly registered with the IRS for tax filing and tax resolution purposes. If you’re an independent contractor, make certain you collect all of the 1099s from those with whom you do business so you can file your taxes properly.

File your taxes on time. We cannot stress enough the importance of this tip. It may be tempting to “forget” to file your taxes because you owe money, but again, ignoring the IRS will not make the problem go away. If you find you’re going to owe taxes to the IRS you need to at least make a goodwill payment when you file your taxes and then immediately work with the IRS to work out a payment plan for the remainder. Remember, even if you file an extension, you will still be required to make a payment when you file the extension. An extension doesn’t mean you don’t have to pay — you do. Talking to the IRS immediately and working out an payment arrangement is the best course of action. Once the IRS has offered you a payment plan, make certain you don’t default. If you do, the IRS can demand immediate payment of the whole amount due.

The IRS is not perfect so double check the money they say you owe. If you are uncertain if the figures are correct, work with a tax professional. Double check that the amount the IRS says you owe matches up with what you think you owe. Talk to an accountant if you’re unclear. If you’ve owed money in the past and anticipate owing in the future, start saving money now so you aren’t faced with an insurmountable amount of debt in April. Talk to an accountant to pay quarterly taxes as that will help you come tax filing time.

You don’t have to go it alone. Filing taxes and trying to come to some tax resolution is a daunting task for tax filing professionals, let alone mere mortals. You will get peace of mind from working with a tax professional on an annual basis. Even if, after you’ve checked the figures, and worked with a tax professional, find that you still owe more than you can possibly pay, you need to immediately contact the IRS and work out a payment plan. When it comes to tax problems, you are not alone; many individuals on an annual basis find themselves facing tax issues. Searching the Internet, talking to a tax professional or an accountant are the best first steps to addressing tax debt, but remember the problem will not go away, so be sure you address it.

Seeking tax relief from the IRS? Contact Guardian Tax Resolutions. The Guardian will help you resolve your tax issues and get you the piece of mind that you deserve.

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