Albert Einstein once said, “The hardest thing in the world to understand is the income tax.” Many people relate and commiserate with this sentiment, especially those who find themselves trying to solve their tax problems.

Navigating taxes can be incredibly confusing, and a real headache. When you find yourself unable to pay your tax balance, it can feel scary and overwhelming – like the weight of the world is on your shoulders. You are not alone, and there are options to help you navigate this tricky and confusing situation. Take a deep breath, grab a cup of your favorite beverage and let’s dive into what you can do to solve your tax problems.

Step 1: Don’t Panic

First things first, don’t panic. This is very important to keep in mind as you work to solve your tax problems. The IRS is not likely to show up at your door with handcuffs to arrest you or to take your house. Contrary to how they are portrayed, IRS agents are people too. They understand that life happens, and that sometimes you just can’t pay your tax bill on time. The key is not to ignore the problem and to take action to work toward solving your tax problems.

Step 2: Explore Payment Options (even if you don’t think you can pay anything)

The IRS has several options to help you handle your tax problems over time. These can include, but are not limited to the following options:

• Installment Agreement: This is basically a payment plan for your tax balance.
• Offer in Compromise: This is an option to settle your tax balance for less than the full amount you owe. Contrary to many of the advertisements making their way around television, radio, and the internet, this option is not available to everyone.
• Currently Not Collectible Status: If paying your tax bill would cause a significant financial hardship, the IRS might temporarily delay collection of your tax balance until your financial situation improves. As with the Offer in Compromise, this option is not available to everyone. If this status is granted for your situation, it does not mean your tax problems and the balance go away, but it can help give you some breathing room to get back on your feet.

Step 3: Communicate with the IRS

The IRS is not a big evil monster and cannot read minds. If you are having tax problems, or cannot pay your tax balance, let them know. For individuals, call the IRS at (800) 829-1040; for businesses, call the IRS at (800) 829-4933. They are generally available from 7:00 a.m. until 7:00 p.m. your local time Monday through Friday.

By calling them, they may be able to offer additional options based on your specific situation.

Step 4: Consider Professional Help

Sometimes it is best to call in the professionals to do the heavy lifting. An experienced tax professional can help you navigate the complexities of the tax system by acting as your advocate to help find the best solution for your specific situation.

Whether it’s a CPA, and Enrolled Agent, a tax attorney, or a combination of these, having an expert in your corner can make a big difference. They are experienced at helping people solve their tax problems, understand the complexities of tax laws, and the language used by the IRS. Having an experienced tax professional represent you before the IRS can help ease the burden and generally means that you do not have to regularly communicate with the IRS directly any longer.

Step 5: Stay Informed

Watch for any correspondence, including tax notices, from the IRS and stay informed about the options available to you to help solve your tax problems. Ignoring tax problems will not make them miraculously go away, and could even make things worse!

Learning you have tax problems and not being able to pay your tax balance can be stressful. There is a light at the end of the tunnel because there are options and professionals available to help successfully manage the situation.

For help navigating your tax problems and negotiating a resolution, contact the tax team at the Business Law Group. Our team is ready to help you by taking the burden of dealing with the IRS and helping you navigate your tax problem to find a resolution tailored to your situation. Call us at (719) 355-8840 or email info@businesslawgroup.us to get started today.