According to a spokesperson for the IRS, 8.2 million Americans owe back taxes. Some take active measures to deal with the situation, but others assume they can hide out and avoid the IRS indefinitely. That’s not a wise approach for dealing with tax debt. The following are among the greatest mistakes you can make if you’re currently carrying an individual balance with the IRS:
Ignore Your Tax Debt
Tax debt, like any problem, won’t miraculously disappear if ignored. While this is a tempting solution, it will only lead to penalties, interest, and other adverse consequences. The IRS always prefers that you tackle debt head-on. If you’re upfront about the issue, you could secure a reasonable payment plan or even an Offer in Compromise.
File For Bankruptcy
While filing for bankruptcy is a reasonable solution in select cases, it’s rarely the best option. Bankruptcy only discharges some debt, such as federal income taxes. If you owe payroll taxes or associated penalties, these will never be wiped out by bankruptcy. It’s important to first consider the full scope of your debt and determine whether alternate arrangements are possible.
Deal With the IRS Alone
You’ve decided to stop hiding and take charge. That’s great but be wary; the IRS will not necessarily go lightly on you, especially if you owe a huge balance. If you deal with the IRS on your own, you may face larger payments or significant interest. An IRS enrolled agent can help you obtain a more favorable resolution.
It’s time to stop hiding from the IRS. With Highland Tax Resolution on your side, you can move beyond your stressful tax situation. Call us today at 720-398-6088 to learn how we can help.