What to do about Tax Debt

Outstanding tax problems can leave you feeling worried and stressed over steps that the IRS may take to obtain the money you owe. If you are concerned about personal tax debt, your Tucson Tax Resolutions Specialist CPA can help you evaluate the situation and find the best path to achieve the tax debt relief you are seeking.

Take Proactive Steps

If you know that you have outstanding tax debt, the best thing you can do is take proactive steps to address it. Even if you cannot pay the debt, ignoring IRS notifications will only make the situation worse, since the IRS may pursue wage garnishment or other actions. There are several options available to address your tax problems; acting to find a resolution quickly allows you to explore your options and choose the best path for you before the IRS takes aggressive actions, such as property seizures. Additionally, if you have not yet filed your tax return, do so as soon as possible—the penalty for failure to file your tax return is much greater than the penalty for failing to pay your taxes, and will only compound over time.

Hire a Qualified Tax Resolutions CPA

Hiring a CPA experienced in IRS Collection matters is a great step toward handling your AZ tax debt quickly and smoothly. Even if you think you know the path you want to take to resolve your debt, an experienced CPA can assess your financial situation and offer professional advice you may not have yet considered. CPAs can also help you propose an installment plan or apply for an Offer in Compromise that is more likely to be accepted by the IRS, allowing you to pay off your debt more comfortably and quickly; additionally, your CPA may be able to help you amend previous tax returns to reduce the amount you owe if you were eligible for additional deductions you failed to claim. 
Are you currently worried about outstanding tax debt in Tucson? Tom Scott, CPA specializes in helping individuals achieve tax debt relief; you can find out more about handling IRS tax problems when you visit us online, or call (800) CPA-4005 to schedule a tax relief consultation.

Accelerated Accounting

Tucson Accounting, Bookkeeping, and Tax Preparation Experts
145 E. University Blvd., Suite 1A
Tucson, AZ 85705

(800) 272-4005

Are you in Tax Debt?

Tax debt can leave you confused and worried about the potential repercussions if you cannot pay your taxes. However, it’s essential to address tax debt immediately, as putting off seeking a resolution will only cause the penalties and interest you face to compound. If you are suffering from IRS tax problems, the first step you should take is contacting a tax accountant for help.

Be Proactive

As soon as you know that you are facing tax debt, such as receive a notice from the IRS, it’s time to take action. Many individuals ignore or put off responding to IRS communications in the hopes that they will be forgotten or overlooked. However, putting off the resolution of your debt will ultimately increase the amount you may be forced to pay and could lead to serious consequences such as wage garnishment and property seizures. Rather than forcing the IRS to pursue your case and impose ever-increasing penalties, the best way to address tax debt is to proactively seek the assistance of an accountant specializing in tax debt and tax relief.

Assess Your Financial Situation

Your accountant will work with you to assess your current financial situation, including calculating your complete financial assets and income. This allows you and your tax accountant to determine the right tax payment option for you. There are several tax debt repayment solutions, including paying the total owed, enrolling in a monthly Installment Plan, making an Offer in Compromise, or seeking Currently Not Collectible status. While these options can delay, reduce, or spread out your tax debt to make it more manageable, the outstanding total owed will often continue to accrue penalties that should be taken into account when you and your accountant explore the options available to you.

Tom Scott, CPA is a Tucson accountant specializing in helping clients solve IRS tax problems to achieve tax debt relief. If you are facing tax debt, please reach out to our office by calling (800) CPA-4005 to receive the assistance you need today. You can also find out more about our tax resolution services and the steps to achieve tax debt relief when you visit our website.

Accelerated Accounting

Tucson Accounting, Bookkeeping, and Tax Preparation Experts
145 E. University Blvd., Suite 1A
Tucson, AZ 85705

(800) 272-4005

PUTTING AN END TO WAGE GARNISHMENT

If your taxes go unpaid after the final filing date, the IRS will first seek repayment by contacting you through the mail. When no steps are taken to address an outstanding tax debt, the IRS will pursue more aggressive means of repayment, including wage garnishment. If you are facing IRS tax problems that include property seizures or wage garnishment, taking action immediately can help you put an end to this process.

File Any Un-filed Tax Returns

The first step in ending wage garnishments is ensuring that all your tax returns have been filed, even those for previous years. Un-filed tax returns will not only affect the amount you owe, they will also continue to accrue a failure to file penalty that will increase the amount garnished from your paychecks and prolong the amount of time the IRS plans to garnish your wages. Even if your tax returns are extremely late, filing them properly is a good first step toward ending wage garnishment.

Arrange to Pay Your Debts
Wage garnishment is an option the IRS will pursue only if you take no other steps to attempt to pay your debt. Thus, making arrangements to address your tax debts in other ways will put an end to your wage garnishment. If possible, paying your debt in full is the best solution; your accountant can help you determine whether selling assets or taking out a loan is the best way to pursue this solution. Alternatively, entering into an installment agreement or making an Offer In Compromise are IRS-sanctioned ways to repay your tax debts and put an immediate end to your wage garnishments. If you have questions about which solution is right for you, your accountant can assess your financial situation to make suggestions and offer support, particularly when making an Offer In Compromise.

Wage garnishment can diminish your paycheck past reasonable levels, leaving you without the money you need for daily living expenses. Tom Scott, CPA can help you end wage garnishment and other IRS penalties to resolve your tax problems and achieve long-term tax debt relief.

Accelerated Accounting

Tucson Accounting, Bookkeeping, and Tax Preparation Experts
145 E. University Blvd., Suite 1A
Tucson, AZ 85705

(800) 272-4005