Over 8 million Americans are behind on their taxes. On average, each individual who has fallen delinquent owe the IRS over $10,000. If your tax liability payment is delinquent, you may be scared to answer the phone or open your mail. With professional help, you don’t have to be. There are many myths surrounding tax debt relief and we are here to clear the air. Let’s get started.
Dispelling the Myths of Tax Debt Relief
Expectation 1: Settlement Is Too Good to Be True
People want tax debt relief, but too many of them think it is impossible. Instead, they try their best to save up for their tax liability, interest and penalties. Avoiding your tax debt is only going to increase your level of stress. In reality, the IRS offers its Offer in Compromise program because it is run by people. These people understand that taxpayers face hardships. If you qualify for a fresh start, you will be given one.
Expectation 2: Professional Help Is Too Expensive
This expectation is really unfortunate. At first glance, this expectation seems to make sense. After all, you are delinquent on your tax bill because you don’t have the money to pay it. How can you afford to hire a professional to help you resolve the matter? In reality, you can’t afford to not hire a professional. A tax consultant can save you thousands of dollars and hours of headache dealing with the IRS. The peace of mind alone is priceless. With expert help, your total liability can be reduced to 10% of its original amount and you can go back to enjoying your life.
Expectation 3: If I Don’t File My Taxes, the IRS Cannot Collect My Debt
Unfortunately, the statute of limitations on your tax debt does not start when you file your taxes. Rather, it starts the day your taxes are due. This is usually between the 15th and 17th of April. The statute of limitations also extends 10 years. Can you really spend 10 years looking over your shoulder, hoping to not get caught? Do you really want to? Of course you don’t. If you need relief from your tax debt and have not filed your tax returns yet, the first step is to file them. This task is daunting, especially if you have not filed in several years. However, the penalty for not filing your taxes at all is much larger than the penalty for filing your taxes late. Filing your taxes won’t stop the interest from accruing on your delinquent tax debt, but it is a step in the right direction. Nothing is more empowering than doing the right thing.
Expectation 4: If I Can’t Afford the Whole Thing, I Should Just Ignore It
Many people fail to file their taxes because they can’t afford to pay their whole tax bill and they think they can hide from the IRS by not filing their taxes. Unfortunately, this isn’t the case. When your employer sends you your W-9, they also send a copy to the IRS. Similarly, when you are a general contractor and get a 1099 in February, the IRS gets a 1096. The IRS knows that you have earned taxable income. The question becomes when they will come after you for the debt that you owe. Even if you can’t afford to pay your tax bill, you need to file your tax return. Pay as much as you can now, because the late payment interest is based on the remaining balance of your tax debt. The more you pay now, the less principal there will be to accrue interest.
Contact Geaux Tax Resolution Today
We understand how stressful and scary it is to be delinquent on your taxes. But with professional help, relief is possible. To learn more about relief from tax debt, contact us at Geaux Tax Resolution today. We invite you to send us a message or call us at 337-420-1040 to get you started on the path to a debt-free life.