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Strategies for confronting tax debt

On Behalf of | Apr 3, 2019 | Income Taxes

Tax time can be particularly challenging for people in Georgia who are dealing with the burden of tax debt. People may find themselves with tax bills that they are unable to pay, and they may not be sure how they can find a way out of the situation. As 2018 opened, there were over 14 million open cases involving tax debts for individuals and businesses, even though the IRS has cut its tax liens filed each year by over 50 percent since 2010. The American economy has grown in the past 10 years, but many people still face significant tax debt.

There are steps that people can take to help to mitigate the problem and find a way forward. In the first place, it can be important to confront the problem. Even if it is not possible to pay all the taxes owed, it is important to file a tax return on time or ask for an extension. People should note that the IRS can impose onerous terms for late payments, especially when a tax return is not filed at all. This means that the IRS should often come first when dealing with debts.

While people who owe less than $10,000 may be able to handle their tax debt on their own by seeking a payment plan in installments, people who owe more might benefit from hiring a tax attorney. An experienced income tax lawyer can help to negotiate larger debts with the IRS. While it may be difficult to obtain forgiveness, an attorney can help to avoid tax liens.

People dealing with a significant tax burden might find assistance to help them move forward. A tax law attorney might be able to provide advice and guidance on negotiating a streamlined installment agreement to pay off income taxes or other option to reestablish a healthy relationship with the tax agency.