Found Yourself in Tax Debt? Here are 7 Things You Need to Know

There are close to a million people every year who face tax debt. Are you among them? If you are, don’t panic. Your situation is uniquely problematic for you, which means it also has a unique solution. With the right knowledge and legal support, you’ll be able to deal with your tax issue and move on with your life.

Here are seven things you need to know to help resolve your tax debt issues.

1. You Can Take a Breather

It’s important that you know you’re not alone.

In 2016, the IRS came out with a report that said it was owed over 458 million dollars in uncollected taxes. That means the agency is dealing with quite a few cases besides yours.

There’s no need to panic and do something irrational. It’s well worth the effort to take a few minutes to book a consultation with a legal team to discuss the potential help you can get.

This basically means that, while you definitely need to work towards resolving your issue, you’re probably not facing a SWAT team coming to your door in the middle of the night.

2. Isn’t it counter-intuitive to have someone call in?  

Much has been done to hype up the possibility of arrest and seizure. The IRS is a boogeyman in the eyes of some, made in culture to be ruthless monsters. The truth is that the horror stories are real but rare.

The IRS, while often dehumanizing in its dealings with taxpayers, is also willing to work with your situation to make it easier for you to pay. There are a few different ways the financial burden can be made easier for you. Having a representative such as a tax attorney call the IRS on your behalf and work as your advocate is a good thing, not something that will draw further negative attention to you. Always begin by trying to work in good faith.

3. Installment Agreements Exist

One potential route you can take is a series of payment installations. This method is so tried and true that the IRS has outlined its vision of the best way to do it.

It works like you might think: you owe a sum and choose to pay it over a set amount of time, like a mortgage. It’s a good plan for people who don’t have the funds to pay now but know they will in the future.

But, before you start filling out the paperwork, you should know that it’s possible you won’t have to pay the full liability.

4. Family Problems Can Be a Solution

Few people enjoy splitting up with their spouse or distancing themselves from their family members. But in the world of tax debt, there is a silver lining in those situations.

Let’s say that a married couple gets divorced. While they were married, one spouse became overly invested in an idea–let’s say having a pet snake–and spent too much on it. By the time tax season rolled around, the couple’s funds had been used for snake food, cages, and occasionally, snake wranglers.

It should be no surprise that they were divorced or couldn’t pay their taxes in full. That means they were hit with a hefty letter from the IRS saying they owed a significant debt.

But, the spouse without the snake obsession here might get away clean. At the end of the day, who really is the cause of the loss of funds? That’s right, the snake owner.

If one spouse is responsible for spending away tax funds, then they are culpable for most of the debt, if not all of it if they controlled the finances and the other spouse could not control the non-payment of tax. And by the way, this scenario is not unique to just divorces.

Are you exiting a situation that is related to your current tax debt? Then you may be able to leave, scar-free. And if that’s not a possibility, you’ve got other relief options.

5. Debt Negotiation is Possible

If you are unable to pay your debt in a timely manner, the IRS will come to the negotiation table. There are a few ways the negotiation could take place.

With the help of a tax attorney, you can try to challenge the calculations made by the IRS when determining your debt. Or, you may be able to argue that you simply cannot pay the amount due, or that if you did, it would ruin your finances.

It’s important you realize that negotiation is only possible with the legal support of experts in tax law.

6. You May Be Able to Extend Your Deadline

One important conclusion to negotiations may be able to come up with is an extension of your deadline. In certain for certain tax debt situations, you may be able to push back your debt due date.

7. Real Help is Available

The options outlined in this article should help you flesh out your understanding of the debt situation you or a friend may face. At the end of the day, we are here to help regular people like yourself overcome the financial and mental burden of tax debt.

Having the support of a real legal team is the difference between stress and relaxation.

Confront Your Tax Debt

Owing a debt to the IRS should seem less scary now than it did before reading this. While your situation is unique, it’s also true that you are empowered to take control of matters.

We can provide the help you need to get through this situation intact. Still not convinced? Reach out to us to ask about your situation.

Our qualified team of legal experts and attorneys can help you out. What are you waiting for?