Millions of Americans are in billions of dollars of debt to the IRS. The letters are piling up and you feel confused and overwhelmed. You can’t afford to pay your taxes in full and don’t know where to turn. The best thing you can do when seeking tax debt relief is turn to a tax advisor. They can help you avoid common pitfalls so you can navigate these waters as smoothly as possible.
Tax Debt Relief: Critical Errors to Avoid
Believe Your Problem Will Go Away
The IRS is not going anywhere. You may be one of millions of Americans who owe the IRS taxes. But if you have received a certified letter informing you of your delinquent tax liabilities, the IRS is aware that you owe them. They may take a while to follow up with you, but they will never forget and you will not slip through the cracks. The IRS has 10 years from the date your taxes were due to collect from you. Just because they don’t follow up right away doesn’t mean they won’t in the future.
Settle for an Expensive Installment Agreement
One of the most common forms of “relief” for tax debt is an installment agreement. This is a great option if you are not eligible for less costly IRS debt relief programs. But an extremely common pitfall of IRS debt relief is jumping at the first offer without weighing all your options.
An installment agreement is an agreement between the IRS and a delinquent taxpayer to pay off the delinquent and current taxes in installments. Depending on how much you owe, you may have between four months and six years to pay off your tax debt. Keep in mind, however, penalties and interest still accrue during this time. This can be an extremely expensive option depending on your circumstances.
A professional can help you determine the best solution for relief from your tax debt. Owing the IRS can feel scary and lonely, especially if your tax liability is delinquent. Remember, you are not alone. Tax advisors are unbiased professionals who can help you see and think clearly.
Ignore the Bigger Picture
As we mentioned previously, tax debt resolution is a time-consuming process. It’s still essential to keep your eye on the bigger picture. Why did your taxes become delinquent in the first place? Maybe you realized a gain on the sale of your home and proceeded to use all that cash to buy your next home.
Maybe you were an independent contractor ignorant of the quarterly estimated tax payments. Maybe you thought gains from cryptocurrency sales weren’t taxable revenue. Whatever caused you to need tax debt resolution, identify it and make a plan so it never happens again. You don’t want to be back in this boat next year.
Fall for Scams
Unfortunately, there will always be people taking advantage of others during trying times. Do not fall victim to deceitful companies that prey on innocent individuals. You may have received a phone call from a “business” making unrealistic promises, like:
- A “one-time offer” to settle your debt
- Eliminating the entirety of your tax debt
- Reducing your tax debt in just five minutes
- Settling your debt for “pennies on the dollar”
It’s tempting to jump at the “opportunity” to quickly and completely wipe out your tax debt. Unfortunately, that’s just not the way the IRS operates. Reducing your tax liability is a time-consuming process and the IRS will not waive the entire collectible amount. If you’re struggling to separate your emotions from the situation, get in touch with a tax advisor.
Contact Geaux Tax Resolution Today
If you have received a certified letter from the IRS related to delinquent tax debt, the first thing you need to do is contact Geaux Tax Resolution. You can either drop us a line or call us at (985) 722-1040. We have the knowledge and experience to provide you with tax debt relief. Contact us today.