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Important Reminders about Owing Taxes to the IRS

Owing the IRS money can be extremely stressful. With that, it is crucial that you remember some important tips as you face this financial obligation and prepare to deal with it efficiently and effectively. These reminders can help you form a plan that will let you pay off your tax debt and protect your money, your finances and your legal future.

1) Pay Attention to IRS Notices

When you owe the IRS money, you will receive notices regarding that liability. Most likely, you will get letters in the mail telling you how much you owe and when this debt must be paid in full.

Don't throw those notices away. 

2) Determine If Your Spouse Is Also Liable 

While most debts are shared jointly by married couples, your spouse may not be liable for your tax obligation. If you filed separately and did not include some information on your return, your spouse may not play a part in resolving this matter. It is vital that to find out to what extent, if any, your spouse is liable for this debt.

3) Hire a Tax Expert

Tax laws are often times very unclear and difficult to understand. You may have unknowingly made a mistake on your return and now owe money that you otherwise would have paid if you understood the law better. Hiring a tax professional will help to explain your obligation to you.

4) Know Your Filing and Payment Options

The IRS offers delinquent taxpayers various filing and payment options. If you cannot come up with the cash in your bank account to satisfy this debt, you may use any of these options, depending on your tax situation:

  • Offer in compromise
  • Extension request
  • Installment payment plan
  • Hardship forgiveness 

Exploring these options could help you avoid having your wages garnished or having your assets seized.

5) IRS Also Makes Mistakes 

You also should be on look out for any mistakes the IRS may have made regarding your tax liability. A tax expert should be able to uncover these errors. 

6) Remain Current on Your Returns

The fact that you owe money for prior years does not provide you an excuse to not file your current tax filings. Even if you have an outstanding tax debt, you should keep filing your returns and avoid adding to what you owe the IRS.

Feel free to contact us if you need more information or help dealing with the IRS notices you have received.