Shocked By How Much You Owe the IRS? How to Deal With the Psychological Ordeal And Make a Plan

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You never look forward to tax season, but typically, you have a basic idea for how much you’ll owe and what you can do to cover this obligation.

What happens if you’re completely taken aback by a tax bill that goes far beyond what you originally expected? Suddenly, you’re scrambling for solutions.

Don’t let IRS anxiety dominate your life. Follow these tips to get a handle on the situation and move forward with confidence:

Double-Check Your Tax Return

Upon closer inspection, you may realize that you don’t owe as much as you thought. Take another look at the information detailed in your return, including income, credits, and deductions. An accountant or tax specialist can help you make the most of every opportunity to limit your IRS bill.

Looking ahead to the future, consider making adjustments to your withholdings, as the newly redesigned W-4 may impact future tax obligations.

Request an Extension

Don’t make hasty decisions about your tax bill based on your current emotions. Even a brief filing extension will give you time to consider your options and come up with an actionable plan. This is a wise approach if you suspect that you can reduce your amount owed by revising your strategy for credits and deductions.

Examine Your Options

The IRS offers several solutions to help you manage unexpected tax bills. Depending on your situation, you might benefit from an installment plan, an offer in compromise, or currently not collectible status. A tax expert can help you determine which option best fits your unique circumstances and prepares you to avoid additional IRS issues in the future.

Keep the stress of tax filing to a minimum with help from Highland Tax Group. Contact us today to learn more about our services — and our empathetic approach.