Tips for Tax Debt Solvency

As many state and local governments struggle with balancing their budgets and fending off bankruptcy, you may find yourself accused of tax debt you didn’t know you were guilty of.  As tax debt issues continue to pop up all over the nation, it’s important to know how to approach these issues responsibly.  We’d like to take a few minutes to cover some basics about attaining tax debt solvency.

Dealing with Tax Debt

First and foremost, you should always double-check the accusations that are brought against you.  Because many states and municipalities have tax codes that have become increasingly complex over the last few decades, you may be unfairly accused of owing back taxes.  If this is the case, you definitely don’t want to pay money you don’t actually owe.  Because many smaller governments are struggling with bankruptcy, they may be more apt to falsely accuse taxpayers of certain tax debts.

If you don’t know enough about the codes yourself, you should have a trusted financial professional investigate your tax debt situation.  If your financial professional confirms that you do indeed owe the tax debt you’re charged with, it’s time to start the letters and phone calls.  Speak with the government agency that handles your case and see if the issue can be resolved.

If the government agency is unwilling to resolve your case, it may be time to write a proposal to settle the tax debt.  A well-written and informed proposal that makes good use of the tax code and your own financial situation may help you eliminate your tax debt!