Navigating IRS Tax Debt: How Our Expertise Can Help You Achieve Resolution
- Zachary Runyan, CPA
- Jun 9
- 4 min read
Updated: Jun 11
Struggling with tax debts is more common than you might think. If you find yourself saying, "I owe the IRS," you may feel stunned and unsure of your next steps. But take a breath. You're not alone, and expert help is within reach. Let’s walk through the complexities of tax debt resolution together.
Understanding Tax Debt
Tax debt occurs when you owe money to the Internal Revenue Service (IRS). This can happen for several reasons: underreporting your income, neglecting to file your tax returns, or simply not paying your tax liabilities in full. The consequences can be severe: penalties can reach up to 25% of what you owe, and missed payments can lead to wage garnishment or asset seizure.
For many people, tax debt feels overwhelming. The stress of potential audits, hefty fines, and losing property leads to significant anxiety. However, recognizing your situation is essential, and seeking help is a vital step towards finding relief.
Common Myths about IRS Tax Debt
Numerous myths surround tax debt and the IRS. It’s crucial to set the record straight to open the door for effective solutions.
Myth 1: The IRS Will Always Audit You
While audits do occur, the odds are actually low for most taxpayers. Only about 1% of taxpayers are audited each year. Many individuals worry unnecessarily upon receiving an IRS notice. In many cases, issues can be resolved quickly without leading to an audit.
Myth 2: Ignoring the Problem Will Make It Go Away
Some believe that ignoring IRS communications will lessen their burden. Unfortunately, this usually worsens the situation, as penalties and interest accumulate. For instance, the longer you wait, the more you owe due to daily compounded interest. Addressing your tax debt promptly is crucial to a smoother resolution.
Myth 3: I Can’t Afford to Pay My Tax Debt
Many people feel they cannot pay their tax debt at all. However, the IRS offers various alternatives. For example, approximately 80% of taxpayers who apply for an Installment Agreement can set up manageable monthly payments to clear their debt over time.
The Importance of Tax Resolution
Tax resolution is pivotal in finding a solution to your tax burdens. Ignoring it can expose you to severe penalties and potential legal issues. Skilled professionals can help you navigate intricate tax laws and develop solutions that fit your situation.
Types of Tax Resolution Options
Installment Agreements: This allows taxpayers to pay off their debt in smaller, manageable amounts. For instance, you might arrange to pay $200 per month instead of the full amount at once.
Offer in Compromise (OIC): This program enables eligible individuals to settle tax debts for significantly less than what is owed. If you cannot pay your total tax liability and your financial situation is challenging, an OIC could be a suitable solution.
Abatement of penalties: This allows for penalties and interest to be forgiven. It is important to note that the IRS may not approve this for multiple years of owed penalties and interest. This is an alternative to the OIC program. It requires any owed tax be paid prior to application.
Currently Not Collectible (CNC): If you face severe financial hardship, you may qualify for CNC status, which temporarily halts IRS collection efforts, giving you relief during tough times.
Bankruptcy: This option is often a last resort. It can discharge specific types of tax debts, but should be considered carefully with the help of an expert.
How Our Expertise Can Help
Navigating the IRS and tax debt is complex, but we have the knowledge and experience needed to find the right solutions for you.
Personalized Consultation
We provide tailored consultations to assess your financial situation and recommend the most effective action plan. Understanding your unique circumstances is crucial to creating a strategy that works for you.
Communication with the IRS
Many individuals struggle with reaching out to the IRS. Our experienced team can take over this responsibility, freeing you to navigate other important areas of your life. We will manage all correspondence, negotiate outcomes on your behalf, and keep you informed every step of the way.
Comprehensive Tax Planning
Our expertise extends beyond just resolving issues. We offer thorough tax planning services that help you prevent future tax problems. With the right strategies in place, we can guide you on effectively managing tax obligations, including handling deductions and estimating tax payments.
Taking the Next Steps
If tax debt has you feeling lost and anxious, don't delay in seeking help. Our team is here to support individuals facing tax challenges, offering practical, tailored solutions.
Contact Us Today!
Take back control of your finances by reaching out to our team. We offer a free initial consultation to help you understand your options and take the first step towards financial peace. Don’t let tax debt rule your life. Contact us, and we will work together toward a resolution you deserve.
Final Thoughts
Dealing with IRS tax debt can be confusing and daunting, but it’s essential to remember that help is at hand. By educating yourself on tax debt facts and utilizing professional support, you can find effective solutions to your tax issues. Don’t let the fear of owing money to the IRS hold you back. Reach out today for a consultation, and let's work towards resolving your tax challenges together.
Click here to book a call or call 719-285-7554. You can also email us at info@runyancpafirm.com
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