Overwhelmed by IRS Debt? Discover Your Options to Take Control

Managing Internal Revenue Service (IRS) debt can feel like a never-ending challenge. With all the different tax rules and regulations, understanding what you need to do can be incredibly tough, especially when you owe over $50,000 in back taxes. The fear of losing your home or having your wages garnished adds to the stress and anxiety. It’s normal to feel worried and even embarrassed about owing the IRS money.

Truth is, dealing with IRS debt doesn’t have to be a nightmare. You don’t have to face it alone. There are straightforward options that can help you manage your tax issues and find relief.

So, what are these tax debt resolution services, and how can they help you get back on track? Joshua A. Webskowski is here to answer all your questions. Read on to discover how you can take control of your IRS debt and regain your peace of mind.

Understanding the IRS Tax System

The IRS is the government agency that collects taxes from people and businesses. It has many tax rules and guidelines, which can be really complicated for those who aren’t experts in taxes. There are various things to understand, like when taxes need to be filed and what kind of tax breaks you might get. For a lot of people, dealing with the IRS and its system can be quite overwhelming.

A common reason people end up owing back taxes to the IRS is that the tax system can be hard to understand. Here are a few ways this can happen:

  • Not filing tax returns on time: If you miss the deadline, you can start racking up back taxes.
  • Underestimating tax payments: Sometimes, people don’t pay enough taxes during the year, leading to debt.
  • Misinterpreting tax laws: It’s easy to make mistakes if you don’t fully understand the rules, which can result in owing more taxes.

These issues can lead to owing back taxes, along with extra penalties and interest charges from the IRS.

The Actions the IRS Can Take

The IRS can take a variety of actions if you owe back taxes, including:

  • Putting an IRS lien on property: This means the IRS has a legal claim against your property due to your unpaid tax debt.
  • Seizing your assets: Known as IRS asset seizure, the IRS can take your assets, such as your car or house, to settle your debt.
  • Garnishing your wages: Through IRS wage garnishment, the IRS can take a portion of your paycheck to cover your tax debt.

If you owe over $59,000, the IRS will likely implement an IRS passport freeze, restricting your travel. If you owe over $50,000, the IRS will scrutinize your assets, liabilities, income, and expenses more closely.

The IRS follows National Standards for IRS expenses, which means you may not be able to deduct all of your costs. 

So, if you need assistance or are ready to take control of your tax situation, at Best Tax Pro, we offer a complimentary 30-minute consultation to guide you through the process and explore your options.

How to Deal with IRS Back Taxes Effectively?

If you find yourself in a situation where you owe back taxes to the IRS, it’s important to take action as soon as possible. Ignoring the problem will only lead to further complications, such as additional penalties and interest charges, and potentially even legal action from the IRS. 

Understand Your Tax Liability

The first step in addressing IRS back taxes is to understand the full extent of your tax liability. This means reviewing your past tax returns, any notices or correspondence from the IRS, and any other relevant documentation. It’s important to have a clear understanding of how much you owe, as well as any penalties or interest charges that have been accrued.

Communicate with the IRS

Once you have a clear understanding of your tax liability, it’s important to communicate with the IRS. This may involve contacting the agency directly, either by phone or in writing, to discuss your situation and explore potential payment options. The IRS has a variety of programs and payment plans available to help taxpayers resolve their back taxes, and it’s important to work closely with the agency to find a solution that works for your specific circumstances.

Explore Payment Options

Depending on your financial situation, there may be several IRS debt relief options available to help you resolve your IRS back taxes. These may include:

  • Installment agreements: This allows you to pay your back taxes over time through a monthly payment plan.
  • Offer in Compromise: This is a settlement agreement where the IRS agrees to accept less than the full amount owed.
  • Currently Not Collectible status: This temporarily suspends collection efforts if you are unable to pay your back taxes due to financial hardship.

Negotiating with the IRS can help you manage and resolve your tax debt, potentially reducing the amount you owe and setting up manageable payment plans. 

If you need assistance, Best Tax Pro offers expert guidance to find the best solutions for your situation. Additionally, if you need tax audit help or unfiled taxes help, our experienced professionals are here to assist you. Get in touch today.

Preventing Future IRS Back Taxes

Once you have resolved your IRS back taxes, it’s important to take steps to prevent future tax issues. This may involve:

  • Stay Up-to-Date on Tax Deadlines and Filing Requirements: Make sure you are aware of all tax deadlines and requirements. Mark your calendar and set reminders to avoid missing any important dates.
  • Regularly Review Your Tax Situation: Periodically review your financial situation and make necessary adjustments. This includes keeping accurate records of your income, expenses, and any changes in your financial circumstances.
  • Set Aside Funds for Taxes: Allocate a portion of your income specifically for taxes to ensure you have enough funds when tax time comes. This can help prevent the stress of scrambling for money to pay your taxes.
  • Consider Quarterly Estimated Tax Payments: If you have a variable income, such as from self-employment or investments, consider making quarterly estimated tax payments. This can help you stay on top of your tax obligations throughout the year.
  • Keep Organized Records: Maintain well-organized records of all your financial transactions, including income, expenses, and any deductions. This will make it easier to file accurate tax returns and avoid potential issues with the IRS.

Consulting with our team, led by Joshua A. Webskowski, can help you understand complex tax laws and ensure compliance. 

With former IRS agents and professional tax consultants on board, we have the expertise to guide you and secure the best possible outcomes.

End Note!

Dealing with IRS back taxes can be very stressful. But you don’t have to face it alone. Start by understanding how the IRS tax system works. Stay in touch with the IRS and explore different payment options. These steps can help you resolve your back taxes and get your finances back on track.

Taking professional IRS tax debt assistance is always a good idea during these times. Consulting with experts, like our team led by Joshua A. Webskowski, can provide you with the guidance and support you need. With former IRS agents on the panel, we have the expertise to help you understand your situation, communicate effectively with the IRS, and secure the best possible outcomes. 

Other than assisting you to recover your debts, we can also help you with any tax-related issues. Whether you have received a notice of intent to levy or need help with a payroll tax settlement, we are here to assist you in finding the best solutions for your financial health.

Author

Mr. Joshua A. Webskowski

Joshua specializes in successfully resolving cases in all areas of tax resolution including liens, levies, & other IRS collections cases.

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