Tax Debt

Last Updated on January 22, 2024 by Umer Malik

Tax Debt Won’t Just Go Away

The Internal Revenue Service is legendarily persistent, and the more you ignore them, the greater the trouble can be for you and your family. Failure to pay taxes you owe will result in fines that eventually compel the government to bring you into the legal system. If you don’t pay your taxes, you could have garnished wages, and even go to jail in some cases.

Certainly, the government wanted Al Capone for many things besides taxes; but tax evasion was the charge they were finally able to make stick, and using it they put him behind bars. Now, today’s world isn’t the same one that existed back then—the government has a lot more power today.

While in most situations, you’re not going to be carted straight to jail for failure to pay your taxes, there are situations where things can get “spicy”, shall we say, if you don’t get on top of it. If you’re not sure what to do, look into hiring a tax expert to help you out. Following we’ll explore a few options you might want to think about.

1. Going it Alone – Not The Best Plan

Of course, you can use options like TurboTax online and try your luck. Often you’ll end up paying more than you have to. Sometimes you might make mistakes that cost you later. There are digital assistants that can help you set up a repayment plan online, and for complicated situations, you can find resources to contact government agencies.

This isn’t the wisest way to go, though. You don’t know what you don’t know, and when it comes to the tax code, there’s a lot you don’t know. There’s a lot tax professionals don’t even know, because the tax code is vast and in continual flux. So unless you have a deep understanding of the law here, maybe this isn’t your wisest alternative.

2. Hiring a Tax Debt Relief Expert

There are a lot more IRS tax debt relief options than you may realize. They’ll analyze your situation and provide you with a list of alternatives to consider. Sometimes you can file for bankruptcy, we’ll cover more on that shortly. Other times, debt consolidation help and asset management may be in order. There are always alternatives; some are better than others.

3. Working With a Local CPA or Accountant to Find Options

Accountants are the people you’ll want to look to in your local community to see if there are any alternatives you should consider. Ask around to find accountants who have a good reputation for helping people pay what they owe, and avoid being compromised by incidental mistakes in filing taxes.

4. Finding a Bankruptcy Lawyer

For situations that have a certain level of complication and back taxes involved, you may want to find a lawyer who specializes in tax issues; specifically, those involved in bankruptcy. You might just be able to file in a way that fixes everything more completely than you thought possible.

Getting Out From Under the Thumb of Tax Debt

Finding a bankruptcy lawyer, working with a local CPA or other accountant, and hiring a tax debt relief expert represent some of the smartest ways to get out of tax debt. You can go it alone, and interface with varying government agencies by yourself, too—though that’s really not a wise choice.

There is help out there, and often it’s a lot less “painful”, as it were, than at first it may seem. If you’ve got tax debt issues, get professional assistance.

Apart from this, if you are interested to know more about Advantages and Disadvantages of Credit Card Cashing then visit our Lifestyle category.