In forums like blog posts and articles, tax professionals will usually only give general advice about resolving tax debts. Tax specialists don’t want to risk giving someone bad advice without knowing a taxpayer’s particular issue.
There are a few exceptions to this general rule. Tax professionals will always tell you that you must do something when the IRS contacts you about an unpaid tax debt.
If a taxpayer cannot pay a tax debt, avoiding IRS notices and letters may seem like the best bet. If you don’t have the money, after all, you don’t have the money.
The Importance of Taking Action
Taxpayers should reply to the IRS. Not resolving unpaid tax debts can lead to higher interest payments, increased penalties, and potentially limit the options available for resolving the tax debt. For those who continue failing to respond, the IRS may place liens on property or even limit a taxpayer’s ability to travel internationally.
The IRS is willing to work with taxpayers to resolve debt. The options available to taxpayers depend on several factors, such as the total amount due.
What to Do
The specific steps a taxpayer should take depend on their circumstances, but common steps include:
- Contacting the IRS after receiving a notice and before the deadline provided on the notice
- Checking that they’ve submitted all necessary forms and other paperwork, including documentation
- Considering repayment options, such as a payment plan or Office In Compromise (OIC)
A payment plan allows a taxpayer to pay off a tax debt over a period of time. While interest will continue to accrue, a payment plan limits penalties and additional actions.
With an OIC, a taxpayer offers to pay a certain amount (less than the full amount due) to satisfy their tax debt.
The best resolution option depends on the details of a taxpayer’s situation. If you have unpaid taxes or other issues with filing or payments with the IRS, you have options for finding a resolution. The experts at Highland Tax Resolution help our clients navigate and resolve tax issues in the most beneficial way for their situation. We have over 27 years of combined experience assisting clients with their tax debt resolution, and our regular communication helps them sleep knowing their problems are being professionally handled.