Photo of Professionals at Bomar Law Firm

Guiding You Through The Legal Process

Photo of Professionals at Bomar Law Firm

Factors that might increase the risk of tax debt concerns

On Behalf of | May 18, 2023 | Tax Debt

Dealing with overwhelming tax obligations is a type of challenge that continues to affect the lives of many individuals. Even the thought of facing tax debt concerns can be a daunting concept and the fallout of similar issues could have a significant impact on various aspects of a person’s life. Knowing some of the factors that might increase one’s risk of encountering issues with tax debts could help individuals in Georgia take steps to protect their financial futures. 

Possible causes 

According to experts, there are various issues that might increase one’s risk of facing high tax debts. Failing to file taxes remains a prevalent cause of such concerns and being thorough when evaluating tax requirements may be vital to staving off such issues. Experts also suggest that tax debts may also stem from issues such as under-withholding. This may often occur when new employees claim excessive exemptions on tax documents at the start of employment, which could lead to insufficient withholdings from their paychecks. 

Experts also indicate that there may also be some scenarios in which taxes might not come directly out of one’s paycheck. For instance, those who are self-employed may be responsible for managing tax obligations by estimating tax payments and failure to accurately estimate these payments could also trigger undesirable results. Attempting to claim deductions or exemptions that one is not qualified to receive can also prove detrimental. Even if this occurs by mistake, the results could prove devastating. 

Addressing the situation 

No matter how it happens, facing issues with high tax debts can be a stressful and intimidating process. Those who struggle to manage similar obligations and have questions about the options to help seek much-needed financial relief might benefit from speaking with an experienced attorney for guidance in addressing their situations. An attorney can help a client in Georgia prepare to make informed choices about each available option and help create a strategy with which to pursue much-needed relief from the trials of tax debts. 

Categories

Archives