Are you in tax trouble? You better deal with it right away to not exacerbate the problem. The job of the Internal Revenue Service (IRS) is to collect taxes, and it is very good at that job. So if there are people who fail to settle their tax problems, best believe that the IRS will go after them.
How to resolve tax issues? Here are three right ways to deal with it.
Contact the IRS immediately
Do not dilly-dally when it comes to dealing with the IRS. The consequences of not dealing with your tax problem could be dire. You should not fear dealing with the IRS because as long as you show that you are intent on paying your tax obligation, the IRS will listen. The government can still be merciful and it is reasonable.
Know the payment options
As mentioned, the IRS is not unreasonable. It will listen to you and it will give you a chance to pay off your debt. You just have to show your willingness to pay. The IRS can offer you options that will not bankrupt you. In fact, the payment options are usually pretty reasonable. Usually, the IRS will allow you to pay in installment. However, you have to prove that you are cash-strapped and cannot pay your debt in full. The amount you pay every month will also depend on the documents you will submit to the IRS. The documents will determine the amount you can afford to pay every month.
When uncertain, hire a tax professional
It’s understandable that if you have tax debts you would be hesitant to spend your money on a professional—there is a reason why you are in debt after all. However, hiring a professional may be able to save you some money. Professionals know how to deal with tax issues. They know how to get the best payment options and, in some cases, even get the debt forgiven. Hiring an expert could be a practical move. Just make sure you get someone accredited with the IRS so that he can save you the hassle of directly dealing with this government entity.
Now, if there are right ways of dealing with the IRS, then certainly there are also wrong ways. So here are three ways on how not to deal with the IRS.
Do not volunteer information to the IRS
You want to prove that we could not afford to pay off our debt in one go. You need a payment plan. So make sure you don’t volunteer information to any IRS employee that could endanger a possible lean payment option. When you deal with the IRS, an employee will interview you. Answer only what is asked. Do not give anything more.
Do not answer what you don’t understand
Tax is confusing and could be a bit tricky. So if there is something you don’t understand while dealing with the IRS, do not answer. Allow the IRS to explain the matter to you. Just tell them that you don’t know or you can’t remember.
Do not lie to the IRS
While you want to get the best payment option when dealing with your tax problem, it is not a license to lie to the IRS just to prove that you cannot afford to pay off your debt. Remember that the IRS has enough resources to verify your lie.