Running Out of Time: Are Your Taxes Still Unpaid?

Running Out of Time: Are Your Taxes Still Unpaid??

The tax deadline is here, and if you’re not prepared, the clock is ticking fast. Facing IRS debt can be overwhelming, but waiting isn’t an option.

The good news?

You can still take decisive action to protect your finances and avoid hefty penalties. Whether you’re an individual or a business owner, acting now is crucial to staying in control of your financial future.

6 essential steps you need to handle IRS debt quickly and reduce stress today

Step 1: Always File Your Taxes, Even If You Can’t Pay

One of the biggest mistakes you can make is not filing your taxes on time, especially if you owe money. The penalties for failing to file are significantly higher than for not paying. By filing on time, even if you don’t have the money to pay, you’re signaling to the IRS that you’re making an effort to comply, which can help reduce the overall penalties.

Step 2: Don’t Ignore IRS Letters

If you’ve received a letter from the IRS, the worst thing you can do is ignore it. The IRS communicates with taxpayers through the mail, and each letter includes critical information about your debt, deadlines, and possible penalties. Open that letter, review it, and make sure you respond in a timely manner to prevent more serious consequences.

Step 3: Request a 30-60 Day Collection Hold

If you're feeling the pressure and need more time, you can request a 30-60 day collection hold from the IRS. This temporarily halts collection efforts, giving you some breathing room to figure out the best repayment strategy. Use this time wisely to assess your financial situation and get professional advice if needed.

Step 4: Explore Creative Payment Options

Before jumping into a payment plan, explore creative options to pay down your debt. Some people opt to sell assets like vehicles or property, while others may borrow against retirement accounts or home equity. Depending on your financial situation, settling for a smaller amount through programs like "Offer in Compromise" may also be an option.

Step 5: Consider Selling Unused Assets

Sometimes the solution to your IRS debt is closer than you think. Do you have a car, boat, or land that you’re not using? Selling these assets could help pay down your tax bill faster and avoid the high interest rates that come with IRS debt.

Step 6: Set Up an Installment Agreement

If none of the other options work for you, setting up an installment agreement with the IRS is a viable solution. This allows you to make monthly payments over time, which can be more manageable. Just remember to stay current with your taxes moving forward, as missing future payments could cause you to default on your installment plan.

Take Action and Get Expert Help

Facing IRS debt is never easy, but taking these steps can help you reduce your tax liability and relieve stress. The key is to stay proactive and communicate openly with the IRS, which will make the process smoother.

Need help navigating your IRS debt? Book a consultation today and let’s create a personalized strategy to get you back on track.

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