If you owe money to the IRS, you may understandably be quite worried. The IRS has a fearsome reputation. It’s powerful, too: the agency has the power to collect when you do not pay, for example by garnishing your wages or levying your bank accounts.
The good news is that there is no need to despair. If you owe business or personal taxes, there are manageable ways to remedy the situation.
Should you file bankruptcy?
If you have a lot of different debts, bankruptcy may an option for you, and you should talk to a bankruptcy lawyer.
But, for many people with tax debt, addressing the issue with the IRS is the better option. Most tax debts cannot be discharged in bankruptcy.
There are achievable ways to pay off tax debt
By negotiating with the IRS, you may be able to come up with a realistic plan for eliminating your tax debt.
For example, the IRS has a program called “offer in compromise,” in which the IRS agrees to settle the debt for less than it is worth. In exchange, the taxpayer agrees to repay the debt in a short period of time.
In other cases, you may be able to negotiate a payment plan that allows you to pay off your debt over time. For many people, making smaller, regular payments is more realistic than paying off a debt in a lump sum.
You can challenge what (they say) you owe
The IRS is an agency run by humans, and humans make errors sometimes. It may be that the IRS miscalculated what you truly owe, or is wrongly accusing you of fraud.
Or there could be a good reason why you didn’t pay what you truly owed. Perhaps you underpaid your taxes because you were relying on bad advice from a professional. Maybe you had a medical issue that prevented you from dealing with your taxes on time.
It’s always worth investigating if you truly owe what the IRS says you do. You don’t need to take everything the IRS says at face value.
Don’t go at it alone – get help
Most people aren’t equipped to handle these issues on their own. Working with the IRS is challenging, and proving claims can be complicated.
It is always best to get help from a tax attorney. If you’re struggling with tax debt, you can contact The Peck Group, LC at 770-884-6914 for a free 30 minute phone consultation to learn more about the options available to you.