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5 Common Mistakes When You Have Tax Debt Problems

5 Common Mistakes When You Have Tax Debt Problems

Many taxpayers accumulate some state or IRS tax debt. If you have a solid tax resolution plan and execute it properly, you can usually regain control of your financial situation and work towards eliminating your debt.

However, some taxpayers make their problems much worse, eventually leading to even more debt or seizures of their assets by the IRS. Avoid these 5 common mistakes if you want to resolve your tax problems as quickly as possible.

Ignoring IRS Notices

Your first indication of a tax problem may come as an IRS notice via mail. You may have made a mistake on your tax return or failed to make a tax payment, and the IRS is telling you what you need to do to fix the issue.

If you don’t read the notice, you won’t know what the problem is or how to fix it. Even if you do read the notice, you may need to some help to figure out exactly what it means.

Whatever you do, don’t ignore an IRS notice because the problem is not going to go away on its own.

Failing to File

If you owe taxes, it can be tempting to avoid filing another tax return. It takes work to file your return, and you are voluntary sending the IRS information about how much you owe in taxes for the year.

However, the consequences of failing to file are simply not worth it. You’ll pay even more in tax penalties, and the IRS can still collect the tax by filing a return for you, known as a Substitute for Return.

Impractical Payment Plans

If you’re going to resolve your tax issues, make sure you come up with a plan you can stick to. If you negotiate a payment plan that you can’t actually afford, you’ll end up in an even worse situation.

The IRS can terminate your payment plan if you miss a payment or don’t keep up with your current taxes. At that point, you’ll once again be at risk of having your wages garnished or bank account levied.

Unrealistic Offers in Compromise

The premise of the Offer in Compromise program sounds great—settle your tax debt for less than you owe. In practice, there are strict requirements you must meet in order to qualify.

It takes a lot of work to apply for an Offer in Compromise and a lot of time for the IRS to process your application. If you don’t have a realistic shot of having your offer accepted, don’t waste your time. Instead, consider another tax resolution strategy with a greater chance of success.

Not Getting Professional Help

If your tax debt keeps growing and you haven’t found a solution to your problems, consider getting assistance from a tax resolution attorney. You can avoid wasting time and get some peace of mind by having a professional help you with your case.

The Gartzman Law Firm can help you with IRS installment agreements and other tax resolution strategies. Use our contact form to request a consultation with an Atlanta tax resolution attorney.