Having the government on your case due to tax issues is enough to make anyone look for a quick fix. However, you need to do some due diligence before looking for help with your taxes.
Instead of entering a potentially risky position, you should follow these steps:
Contact the IRS
Once you receive your notice of penalties or outstanding obligations, you need to contact the IRS to deal with the issue immediately. When you speak to a revenue officer who is willing to help you, he will ask you to submit some financial information to show your ability to pay. If you owe back taxes, you need to update the current year before reaching out to the IRS.
The IRS will be more willing to work with you if you only have one year of unpaid taxes and are current on the other years.
Know Your Payment Options
A consumer who is unable to pay off penalties, taxes, and fees in full needs to enquire about his/her eligibility to take part in the offer in compromise program by IRS. However, you need to be ready to back up any claims about financial hardships with bank statements and documents.
For instance, if you have a 10,000-dollar bill, you can show them that you do not have the ability to repay but are willing to cooperate for a lesser amount – the IRS might be willing to help you.
Depending on your circumstances, you might also be eligible for the program that allows you to pay in installments. If you owe 6,000 dollars, and you can afford to pay 300 dollars per month, you will be allowed to do so until you have paid off your obligation.
However, you need to understand that interest continues to add up, and you will still owe additional interest until your obligation is paid off on the installment program.
Hire a Professional
If your tax issues are complicated, you should consider working with an accredited expert.
Unless you owe a very small amount, which you can pay off over a short period, you should start looking for a reputable tax attorney, enrolled agent, or accountant. You can find a professional through referrals or on websites such as yourirsproblemsolvers.com.
The person that you hire should be experienced enough to be honest and not promise you the moon. It is in your best interest to be honest about your issues and provide the specialist with the necessary documents to increase your chances of success. For instance, if you took some deductions that you thought were honest, you should provide the documents that support your reasoning.
Nobody likes dealing with taxes because they are exhausting. If you would rather spend your time handling issues that you are knowledgeable about, you should hire a professional to deal with your tax problems. When you do so, you can start focusing on other aspects of your life.