Everyone is familiar with the various issues you can potentially face while dealing with taxes every year. Failing to pay the taxes can get you into some really complicated situations that cannot be dealt with easily. In cases where you may have failed to file or pay your taxes, it is best advised to reach out to a professional the soonest you can and work towards dealing with the unpaid taxes. Here are a few things we recommend keeping in mind when you have dues to clear with the IRS. Read on. 

Face the Issue 

One thing that isn’t going to change is that there is no point in running away from the issue. You can’t just forget about your dues, as the IRS never will. If you can’t pay the dues or file for returns on time, apply for an extension. Ignoring your taxes will just give it enough time to rapidly grow to a huge amount that will be much more troublesome than your dues. While there is a late filing fee of 5% of tax owed every month and up to 25% of the outstanding balance, there is an underpayment penalty of 0.5 to 1% of the monthly balance owed. 

Be Honest About Your Situation

You need to be completely honest with the IRS about the issues you are facing. The authorities understand that there can be financial hardships due to incidents such as loss of your job or a major health issue in your family, which might leave you incapable of making payments and/or clearing dues in time. Although it is rarely permitted, it is always better to let the IRS know about your situation than expect them to understand when it’s already too late. Trying to fake your financial status won’t be of any help and, on the contrary, might end up getting you in trouble for doing so.

Check If You Are Eligible for Offer In Compromise

As mentioned before, the IRS does understand that some issues might leave you financially unstable and incapable of dealing with taxes. In case of such issues, it is highly recommended to check your eligibility for “offer in compromise”. This amazing IRS debt relief feature allows you to get on the right side of the IRS by paying a smaller amount than what you actually owe. However, you must know that the IRS only accepts these requests if you are stuck in a dire situation or paying the dues creates a financial crisis for you. Although it is much easier to convince the IRS for a payment plan instead, you should check your eligibility for an offer in compromise if you can’t afford to deal with the tax dues due to some reason.

Hire an Attorney to Help with Negotiation

If you have a huge amount due or just are unsure about your negotiation skills, it is recommended that you hire a tax attorney to help you with the IRS debt. There are several payment plans available for those seeking IRS debt relief and having a debt attorney can help you avail the option best suited for you. Besides, they ensure to file accurate paperwork to avoid any issues with the IRS debt forgiveness process later on.

Conclusion

While it is understandable to be unable to pay your taxes, no reason can justify trying to evade the problem completely. It is always better to let them know about the situation and work with the IRS to find a more feasible solution. If you or someone you know is looking for expert help in dealing with the IRS, reach out to a reputable tax attorney based out of Dallas, Texas for prompt help.