Unpaid taxes can really add up quickly for unsuspecting families. Tax debt can leave many families in turmoil when they are already financially strapped. In fact, tax debt is a big contributor to bankruptcy filings.
The most important thing to know about tax debt is that it must be repaid. The IRS does not take unpaid taxes lightly and you can bet they will collect on their money. In fact, the IRS may garnish your wages or seize bank accounts if the taxes become significantly delinquent. However, this does not mean that all hope is lost. There are a few things you can do to resolve your tax debts before it is too late.
Contact The IRS
The worst thing you can do when you owe the IRS money, is to duck their calls. It is important you contact the IRS as soon you realize you may not be able to pay your tax debts in full. The IRS offers several programs that help financially burdened individuals repay their tax debts.
You may be granted an extension on your payments through the IRS installment plan. This plan allows you to repay your tax debts through a specified number of installments over the course of a few years. If you are suffering an extended financial hardship and may not be able to satisfy the installment plan payments, you can request a negotiated payment amount.
In an Offer In Compromise, the IRS agrees to accept less than the actual amount owed. In other words, the IRS will grant you a debt settlement agreement for you to repay over a specified period of time.
Hire A Representative
Dealing with the IRS can be stressful and intimidating for many people. If you are trying to negotiate a repayment plan for your unpaid taxes, a qualified tax attorney can help you get through the process as smoothly as possible. Why deal with the IRS directly? A tax attorney can get you the best deal and help you resolve your tax debts quickly.