When you have serious tax issues, you need someone who knows tax law

4 things you should know about dealing with the IRS

If you’re a business professional who has to deal with the IRS to straighten out your tax debt, it can feel intimidating. Many people worry that they’re going to go to jail or get hit with stiff fines. When that letter from the IRS arrives, it’s almost a cause for panic. 

Take a deep breath. The situation may not be as dire as you think.

Stay calm and consider your options

It does not have to be like this. You just need to know how to handle the IRS and what options you have. Here are four key points to keep in mind:

  1. Generally, the IRS will not forgive a debt completely. However, there are other options, such as an offer in compromise that allows you to pay less.
  2. Ignoring the IRS issues will not help. If anything, your problems are only going to get worse. It is best just to face it head-on, even if it seems intimidating.
  3. You may not have to pay the entire amount at once. For instance, some people use installment plans. They end up paying the entire debt, but doing it over time makes it easier.
  4. Tax debt isn’t always your fault. Maybe an accountant made a mistake. Maybe a vendor reported things to you inaccurately. Work with the IRS to find out what happened and how you can correct it.

The best thing you can do for yourself is to remember that you do have legal options and you don’t have to do this alone. You can work with a legal team to sort out the details and consider all of the various options the IRS provides.