Falling into the dreaded owed tax pit is one of the most stressful and devastating things that can happen. Unfortunately, though, it’s also something that’s easily done and can prove costly to resolve. A simple mistake is all it takes to owe tax to a government, but need not fear, there’s plenty you can do to get on the straight and narrow again with your beloved government. Here are a few tips to help you get back in control.
Open Your Mail
Seeing a letter from the IRS makes you want to put your head in the sand further and ignore it, but that’s probably one of the reasons you got yourself in the situation in first place. Pump out your chest, show a bit of courage, and open all your mail so you don’t fall behind again. It’s one of the simplest tips to follow, but it’s been one that has helped thousands of people in worse positions than you get out of their tax mess.
Work with the Tax Authorities
It’s very easy to fall into the whole trap of “well if I can’t afford to pay the full amount today, there’s no point in paying it at all”. However, just because the tax authorities are always on your back, you have to remember that most of the time, the letters you receive through the post are automated. This means you have yet to talk to the tax authorities in person. Therefore, you’re missing out on the chance to tell your heartfelt story that could help put you in a better position as far as paying back tax in smaller instalments is concerned. Work with the authorities and you’ll find yourself feeling relieved.
Contact a Tax Advisor
Your other important tip is to consider contacting a tax advisor to see where you can save money on your return. If it’s gone far past that and you’re in a much bigger hole, you’ll want to consider tax resolution services so you’ve got someone watching your back. Many businesses offer this service, so ensure you choose one that’s reliable, reputable, and established in working with the same type of clients.
Resolve Your Other Personal Finance Problems
Sometimes, the reason for not paying a tax bill is because of the stress of falling into other financial problems along the way. This is one of the worst positions to be in because you’ll have creditors chasing you for money and the tax authorities. In this instance, it’s important to remember that owing tax is a much bigger problem and you should always concentrate on that issue first. However, seeking out advice on your other personal debt could help you relieve a lot of pressure and that could help you think more clearly when it comes to your tax debt.
In conclusion, being in a spot of bother with the tax authorities is a big problem, but it’s a problem that can be resolved just as long as you’re willing to work with the tax authorities and you don’t bury your head in the sand.