Seattle is among the top 10 best places to live in the United States, and rightly so because of its high average income and its environment friendliness. However, you may find yourself worried and not be able to enjoy the serene Seattle lifestyle if there are any delinquent taxes on your balance sheet.
You will want them to be paid as early as possible so that you can live your life peacefully. But the fact is that this problem won’t go away on its own. You will have to deal with it. Life will not be normal unless you understand that you have a problem at your hand and only you can deal with it. The tax resolution is not an impossible task, and all you have to do is to take a step-by-step approach toward it.
Here Is A Step By Step Guide Explaining Why It Is Important To Resolve Tax Debt Early And How To Achieve It:
Don’t run away from problem:
The mature approach to live your life is to face the problem early on, not try to run away from them. Following the pigeon approach as he sees the cat doesn’t make the cat go away. The other reason not to ignore tax debt is that the IRS will not ignore it, and it will come after you to collect it. In fact, acknowledging the problem early on in this case helps a lot. For example, if you fail to pay tax on time or forget to submit a tax return, you can apply for an extension to pay tax or submit your returns. Additionally, the IRS put late payment penalties for the period the taxes are unpaid. You can also face heavy fines for not cooperating with the IRS.
If you think that you are facing financial hardship and the IRS will forgive your taxes, you are completely wrong. It is true that the IRS has facilities like “Offer in Compromise” for the taxpayers facing extreme hardship, but there are only a few cases accepted for the offer in compromise. The criteria to be eligible for offers like these is quite tough, and not everybody gets it in the end. Even if you apply for an offer in compromise, be realistic in your approach and make a back-up plan if your application is not accepted.
You can handle it yourself:
If the tax you owe is less than $10,000, you should handle your case yourself because the tax attorney or advisor charges quite an amount, and you may end up paying your tax advisor more than you pay the IRS. There are various online free softwares available for preparing returns and calculating reliefs, refunds and penalties etc.
Hire an attorney if the amount is more than $10,000:
The tax attorney’s job is to find ways to get you relieved of your taxes and save money for you. If you owe more than $10,000, a tax attorney can help you save some of it by using tax reliefs and refunds allowed under the law. If they take a portion of the money they save for you. You will still be better off.
Get an installment plan:
Once you get a deal with the IRS regarding the tax you owe, apply for a streamlined payment plan so that you can pay back taxes in easy 72 or 84 monthly installments.
In the end, we recommend that if you have a tax liability that you are not in a position to pay off, don’t avoid it and work with the IRS. You will get a better deal than anywhere else. Get professional help from USA Tax Settlement, the best tax relief company near you.
Zee Maq is a content writer who specializes in writing business and finance content. She has nine years of experience and loves to provide problem-solving content to help people tackle challenges in their everyday lives.