Tax trouble sufferers know that worry is a constant companion, that their lives are stuck in helpless limbo because disaster is looming just over the horizon. Not knowing when tax trouble will finally catch up with them or how bad it will be is the worst part. It never seems like a good day to face this problem so the letters keep coming and the problem continues to grow.
Tax trouble can be caused by many things but the most common are self-employment, payroll taxes, divorce, illness, business failure, partnership disputes, and bad tax advice. Whatever the cause, tax trouble feels overwhelming and denial is a common solution.
The IRS is one of the most aggressive debt collectors out there. They can use tactics such as Liens, Levies on bank accounts, seizure of customer payments, Wage Garnishments, Court Judgments, and potentially the forced closure of your business.
The first thing you should do when facing tax troubles is to relax and contact a tax specialist, such as James Coats of STL Tax. Having someone with experience in dealing with IRS problems will make the process go much smoother, and may lead to more favorable results for you.
If you haven’t already filed your taxes, you should do so. The IRS has separate tax penalties for failing to file as well as failing to pay. If you at least get your tax returns filed, that will be less penalties you are paying. The sooner you file, the better, even if you can’t pay right now.
If you can’t pay your whole tax debt at once, you can make payments. You can apply for a tax payment plan online on the IRS website without even having to speak to anyone. You can also apply by mail using federal form 9465-FS, Installment Agreement Request (downloads as a PDF). You should also keep any eye out for tax debt amnesty programs that the IRS occasionally offers.
When dealing with significant tax troubles, you should seek the advice of a tax professional. Call Saint Louis tax troubles expert James Coats of STL Tax today at (314) 645-1614.