Every year people find themselves in debt with the IRS. Not only are they required to pay back anything that they owe for their unpaid taxes, but also penalty charges and interest.
It’s easy to find yourself overwhelmed; however, despite your fear, it’s essential that you start taking action. With enough commitment and organization, you can pay off your debts and get straight with the IRS. Take a look at how to get rid of your tax problems as soon as possible.
Gather All Your Paperwork
When you receive your initial notice from the IRS alerting you that you owe money, don’t get rid of this paper. A lot of people make the mistake of failing to keep all of the documentation that they need. Having all of your paperwork on hand will help with errors, or becoming disorganized.
Make sure that you have a clear understanding of exactly why you owe the IRS money. Go through all of your paperwork and verify whether it was a mistake on your end. Double check your math and confirm that you identify the problem that they’ve red-flagged.
If you don’t understand what the problem is, then you may want to make an appointment with a professional tax consultant. They’ll be able to help you determine if you do genuinely owe the IRS and how to start moving towards a solution.
Explore Reducing Your Penalties and Interest
If you owe a considerable amount of penalties and interest, it makes the total amount you owe much greater and more difficult to pay.
However, it’s possible to seek to reduce your penalties. The IRS may or may not accept your request, however, even if they do you can always appeal their decision.
Whatever you do, just make sure that you take action sooner than later. That way you’ll have a greater handle on paying your debts off as soon as possible.
Request An Installment Plan
If you owe a considerable amount to the IRS, then you probably won’t be able to pay it off in one single payment. Therefore, it may be more realistic to apply for an installment agreement. By paying off your debt in small and manageable quantities, you’ll be able to pay off your debt more comfortably.
Just make sure that you fit all of the requirements before you apply. It’s also important to know that you will still accrue interest throughout the duration of your installment agreement.
Pay Everything Off
Some people will tell you that the best way to handle whatever you owe to the IRS is to pay it off all at once. You may have to sell belongings or work overtime to make it happen, however, once it’s done, you’ll have the peace of mind of knowing that it’s finished and over with.