Tax Debt Strategies

Many people owe the IRS money. In fact, it is estimated that nearly 6 million Americans are in some sort of tax debt. While dealing with the IRS can be stressful, it is not impossible. There are many ways you can manage your tax debts and get out from under the eye of the IRS.

Review Your Records

One mistake people often make when dealing with unpaid taxes is failing to review their previous tax returns for inaccuracies. It is not uncommon to find a mistake on a previous return, which could lower your overall tax liability. Although it is rare to find a mistake big enough to completely erase your tax debts, it is possible to find inaccuracies that could save you significant amounts of money.  Review your tax deductions and double check your employer’s calculation of withholding and tax liabilities, you just my find something to work in your favor.

Contact The IRS

Most people have the inclination to ignore their tax debt problems and hope to avoid dealing with the IRS. The truth is, contacting the IRS is your best chance at finding relief from your tax debts. Whether they have contacted you or not, you can bet your unpaid taxes will catch up to you and you will owe far more than necessary in penalties. The IRS offers several ways to help you get caught up on your tax payments and resolve your debts. Contact the IRS to inquire about an installment plan or Offer In Compromise to begin the process of alleviating your tax debts.