IRS Tax Debt
Stumbling into tax debt with the IRS is easier than ever before, but getting help begins with you. If you have failed to file your tax returns with the IRS or have not been able to pay your IRS tax debt, you should act soon. The tax code is complex and creates pitfalls even the most intelligent among us fall into when preparing our taxes. It is not uncommon to realize that you have tax debt until the IRS gets around to informing you. Tax debt owed to the IRS can arise from many different situations. Neglecting to file tax returns sends a red flag to the IRS to look more closely into your finances. You may employ a couple of people and fail to realize that you are required to pay payroll taxes for them. You may have filed your taxes, but been unable to pay what you owed.
Even if the IRS has not yet sent you a letter or begun collection action against you, waiting to deal with your tax problem hurts you. Penalties and interest are building on your debt, and can turn a small tax problem into a large tax problem. Penalties and interest are building on your debt, and can turn a small tax problem into a large tax problem.
You may first find out you have IRS related tax debt when you don’t receive your tax refund years later. If the IRS determines you owe them money from a previous tax year, it is perfectly legal for the IRS to keep any refund it owes you for the current year. Since many families are counting on their tax returns to pay bills or go on vacation, failure to get money back can be a blow, and it may not end there. If your current refund doesn’t cover your tax debt, more problems arise.
Interest and penalties can quickly snowball your small tax debt into large tax debt. It is not uncommon for IRS tax debt to become so large that you could never realistically pay it all back. However, in those cases, you may be able to settle your debt with the IRS for a smaller amount. This is done by filing an offer in compromise, which is a request to base your debt on what you are able to pay.
The next step in getting IRS tax help is to find a reliable and knowledgeable team of tax professionals. At CRA Tax Rescue, we recommend that you check out every company you are considering at both these sites before making your decision. Your research may lead you to a multitude of tax help services, but they are not all qualified or reliable.
During a complimentary consultation, our tax experts can determine which tax debt solution is best for you. Our entire team of experts can then put the plan into effect to resolve your tax problem. Our specialty is negotiating tax debt settlements and resolutions with the IRS.