In most cases involving outstanding taxes, resolving a tax debt will involve money. In the most basic terms, resolving a tax debt generally involves a taxpayer paying a certain amount to the IRS.
For many taxpayers, the biggest question is how much money they can avoid paying the IRS or get back from the IRS. And let’s be clear: money matters. Minimizing how much money a taxpayer pays to the IRS is one reason taxpayers hire tax professionals.
However, there are other reasons to resolve tax debts quickly. For one, outstanding tax debts can negatively affect a person’s mental, physical, and emotional health. Like any financial issue, tax debts can also strain a taxpayer’s marriage and other relationships.
The Cost of Tax Debt
Having unresolved tax or financial issues is stressful. Recent studies have shown that financial stress can cause serious health problems.
Financial or tax stress can increase the risk of depression and other adverse psychological effects. Those dealing with severe financial stressors are more likely to suffer both mental and physical health issues.
Financial issues, such as tax debts, are often one of the biggest sources of stress on marriages and partnerships. For small business owners, tax issues can pull attention away from their business.
What to Do
Facing tax debt can feel overwhelming. This can be especially true if a taxpayer cannot pay the total debt or is unsure of how to proceed.
Here are some ways to handle a tax debt:
- Find ways to move forward. It can be easy to focus on blame or what should have been done to avoid the tax debt. Hindsight won’t fix the problem. Instead, focus on what can be changed or addressed now and in the future.
- Practice self-care. In addition to addressing a tax debt, individuals should focus on protecting their mental, physical, and emotional health. Even after a tax debt is resolved, taxpayers may still have lingering health issues.
- Ask for help. Contact a tax professional. Taxpayers shouldn’t feel that they are alone. There is help available to find a solution.
Resolving outstanding issues with the IRS isn’t just good for your bank account. It’s also beneficial for your health and quality of life. The experts at Highland Tax Resolution can help you navigate tax issues so you can focus on your life, your business, and what really matters to you.