Having unresolved tax feels like a heavy burden on your shoulders, and may end up ruining your financial life. Therefore, the earlier you seek to resolve them, the better position you are in. Some of these issues like penalties and levies, inability to pay, and tax identity theft may not be from your making, a reason you should seek professional assistance to have them resolved. This article looks at some of the best ways to resolve tax issues.
- Know Your Payment Program Options
Even before seeking professional help from the IRS or an accredited tax professional, you should evaluate the possible payment program options available for you. Experts advise that if you have unpaid tax dues below $10,000, you are good to go. You can go online, apply for a tax penalty waiver, and start paying immediately. They also advise that if you have unpaid bills to other credit companies, you should start paying off tax dues you owe the IRS. Alternatively, you can contact the IRS and apply for the installments method of payment. Some of these payment programs do not need professional intervention to apply, as you can do it by yourself.
- Contact the IRS
After realizing there are underlying tax issues, the best way to address them is to contact the IRS. They will clarify the issues and correct the mistakes that could have occurred in the document. This is because the chances of mistakes occurring are possible, and the IRS is the most appropriate person to address. After negotiations with the IRS, they may allow you to pay the tax in installments or only some parts of the tax. However, for this to happen, you must present documented evidence indicating that you are unable to pay the full amounts of the tax dues because you have undergone a difficult financial encounter.
- Hire an Accredited Tax Professional
Hiring an accredited tax professional is another way to resolve tax issues since they have the necessary knowledge and capacity to negotiate on your behalf. You should hire one if you have tried to resolve the issue by yourself and have failed. The reason you should try to resolve the issue by yourself is that you might be financially unstable and you do not want to waste money on a paid professional for something you would have done without their intervention. Even as you do that, do your research well so that you do not fall in the hands of quacks that will only make the matter worse by parting with your fee money with the issue only put on hold. If you come across a tax professional who asks for a fee before they even contact the IRS to understand the issue, this is a sign that they are not good for the job.
- Do not Your Tax Problems
If you have any outstanding tax issues like inability to pay or unfiled taxes, the most grievous mistake you can do is to ignore them because it is like putting on hold a problem that you will have to deal with later in life. The most unfortunate thing with tax is that the longer you take before you address it, the more tax interests accrue. It is advised that if you have any tax issue, first try to find the underlying cause of the issue before seeking any professional help. Ignoring a tax issue only makes the problem worse than it looks and by the time you decide to act on it, it might be too late, when the IRS has decided to take action against you.
- Be Realistic About Your Situation
Whether you decide to seek the intervention of an accredited professional or an IRS official, you should try your best to be honest. Experts advise that you should disclose all the information to them. If you tried to evade paying taxes, you should be honest about it since doing this is the only way the professional or the office will get you out of the situation. Withholding any information may be termed as an attempt to evade paying taxes and might have serious consequences on you or your business.
Checking for and verifying a tax professional’s license is one of the ways to know if they are genuine. You could also check for their customer reviews and ratings, which should tell you much about the people you are about to entrust this critical information to. Falling into the hands of unqualified individuals may not help solve anything but may instead put you in deeper trouble. The government may interpret unresolved tax issues as a plan to evade tax and you may be risking income garnishment or assets lien, all of which will hurt your business and credibility.