Paying federal, state, and local taxes is a responsibility shared by all wage earners. While all people are aware that they need to pay taxes, there are situations in which you are hit with a surprise tax bill or are not able to pay your past due amount. If you are struggling to become current with past due taxes, tax relief attorney Terrance Selb offers various pieces of advice for how you can move forward.
Do Not Ignore or Delay the Issue
Generally, tax payments are due to the IRS or the state by the middle of April each year. While you can file an extension, you will still be required to make estimated payments at this time. If you know that you have a large debt owed, it is important that you do not ignore or delay the issue. If you are late on a payment, the penalties you receive will continue to grow on a daily basis. Selb would recommend that you file your taxes on time and contact the IRS to begin discussions as soon as you can.
Negotiate a Payment Plan
If you do owe money on your federal or state taxes, Terrance Selb and others would recommend that you start to negotiate a payment plan as soon as you can. There are often easy payment plans that you can come up with that will allow you to repay the amount owed over a longer period of time. While most payment plans are complete in a number of months, you could be able to negotiate a plan that is stretched out for longer. Once you have entered into a plan, it is important that you remain current on all payments.
Avoid Tax Debt Moving Forward
It is also a good idea to do your best to avoid tax debt moving forward. Terrance Selb continues to recommend that you evaluate your withholding strategy to ensure enough money is being taken out of each paycheck. If you work as a contractor or have a less consistent payment schedule, you should make sure you are reserving enough to cover your tax liability each time you are paid. You can then make quarterly payments to the IRS to ensure you have paid enough at the end of the year.
Hire an Attorney
If you have fallen behind, it never hurts to have legal support by your side. Terrance Selb and other tax relief professionals can help you negotiate and communicate with the IRS. This can help to expedite the process and allow you to get the most favorable outcome.
If you have fallen behind on your tax payments, you could face various repercussions including being charged with penalties and further legal issues. If you have fallen behind on your tax payments, following these tips provided by Selb and other tax professionals is a good idea. This can help you stay in good standing with the IRS and avoid such penalization.