What to Do When You’re Struggling With Taxes

Struggling With Taxes

Form 9465

Guest post:

Anyone who has gotten behind on their taxes knows how difficult it can be to get caught up. When You’re Struggling With Taxes, the IRS can forgive people who get behind. As long as you are willing to work hard to get caught up, they will be willing to work with you.

What they won’t tolerate is someone who hides from them. A lot of people think if they hide from the IRS, they will eventually forget that they owe them money. This is one of the biggest mistakes you can make in your life. The IRS doesn’t forget that you owe them money and will come after you with everything they have.

If you are fixated on following through with that mentality, I won’t be able to change your mind. Just get used to your new accommodations in a federal prison; you may be there up to five years. Even something as simple as failing to file your taxes is treated as a misdemeanor. You may face up to one year in prison or $25,000 in fines for each year you failed to file.

If you are having a hard time getting caught up on your taxes, there are a few things you need to do.

  1. First of all, you need to make sure that you call the IRS. Make sure they understand you are willing to pay off your debt. Tell them that you are going to make sure you are committed to paying them back, but might need some help finding solutions. They want you to get caught up on your taxes and will discuss whatever options are available to you.
  2. Understand whether or not your debt is currently uncollectible. This tells the IRS that you don’t have the means to pay your taxes at that time. If you are in a situation where paying off your taxes would create an economic hardship, you may be able to have your taxes deferred until you can regain your financial stability. Keep in mind, this is not a permanent solution to tax problems. Your case will be reviewed every 18 to 24 months.
  3. Consider an offer in compromise. The IRS will help you come up with a repayment plan for your debt. This is a separate solution to a partial payment system that may otherwise be worked out. It will possibly involve high penalties, but may be the best situation you can work out.

There are plenty of options to help you pay off your taxes. Playing hide-and-seek with the IRS is not one of them. Work closely with the IRS and come up with a solution that will help you get caught up on your back taxes. It may be a hassle, but it is something you will have to do.

Note from Bruce here:

Depending on your situation it might be in your best interest to employ a tax professional to help mediate between you and the IRS. In all situation I recommend that you at least consult with one then determine from there your next step. Most reputable preparers that will be a great help to you will hold a free consultation to help you figure out if you should go the road alone.

Kalen Smith writes about financial affairs and budgeting at www.MoneyFile.net, a personal finance blog in the saving and financial advice sector. Kalen also writes about credit cards, investing, mis-sold mortgages, unfair loan agreements and credit rating advice.

Enhanced by Zemanta

© 2011, Bruce Mc. All rights reserved.

468 ad

3 comments

  1. Hi Bruce,

    I love your blog. Just a heads up that this article is inaccurate as an Offer In Compromise is not a repayment plan and it generally will not involve high penalties or penalties at all.

    I will gladly write you a better article than this.

    Best,

    John

  2. I agree. Playing hide-and-see will only make it worse and could lead you to more grave consequences.

  3. I agree. Playing hide-and-seek with the IRS will only make it worse and could lead you to more grave consequences.

Leave a Reply

Your email address will not be published. Required fields are marked *

Connect with Facebook

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Anti-Spam Protection by WP-SpamFree