Taxes can be a difficult thing for many people to get through. Each year, we have to file our taxes correctly, keeping track of all of our income and expenses throughout. But what if you fail to do this and in turn, avoid filing your tax return? Or what if you are unable to pay the IRS and the debt continues to pile up? To avoid getting in too deep with the IRS and your tax problems, try to follow these three steps.
1. Don’t ignore them
The worst thing you can do is hide from your problems. Instead, try to figure out the source of your problem and if you realize you need help, ask for it. Oftentimes, the IRS can help you figure out your problem. “As tax consultants, we try to get the IRS on our side,” says Greg Mahaffey, Enrolled Agent and retired Revenue Officer at Levy & Associates, Inc. “We do this so we can work together and create a solution.” If you ignore the IRS, they are less likely to help you fix your problem.
2. Fix your taxes right the first time
The biggest way to avoid your taxes getting out of hand is to find the source of the problem and fix your taxes right the first time. Some things to determine are: Why do you owe money? What is going on in your life that needs to be addressed? You may need to fix your current taxes or create a solution to fix future taxes, which can be done through an installment agreement, offer in compromise, collection action, etc.
3. Create a plan
Once you figure out how you got into the mess, device a plan to get out of the mess and make sure you never get into that mess again. A tax professional can help work through your problems and the mistakes you have made in the past. Working with the IRS, they can create a payment plan that is easier for you and help you avoid repeating the same mistakes again.
If you feel your taxes have gotten out of hand or have been contacted by the IRS, get a tax professional on your side. Levy Tax & Associates have a staff full of experienced enrolled agents and previous revenue officers that will help solve your tax problem. Contact us today at 1-800-TAX-LEVY or on our website.