How to Prevent Getting Into IRS Debt

Posted on July 25, 2022

How to Prevent Getting Into IRS Debt

Taxpayers should avoid getting into IRS debt by staying up-to-date with tax laws and IRS policies. All taxes owed must be paid, along with any interest and penalties before the tax filing deadline. If taxpayers are unable to pay the entire tax amount they owe, they should pay as much as they can in order to lessen the amount in interest charged monthly.

When taxpayers can pay the full amount of taxes owed, they should do so as soon as possible. To recover an IRS debt, the IRS may begin collection actions anytime. The IRS will send notices of the balance due and requests for payment, and may move to a tax lien or a levy if the debt remains unpaid or the taxpayer is unresponsive. Therefore, taxpayers must comply with the tax laws to avoid problems with the IRS.

Even if taxpayers are unable to pay their taxes in full, they must resolve their IRS debt as soon as they can to minimize the interest and penalties. If they cannot pay the full amount of tax debt, they should choose an IRS payment plan to resolve the tax debt. In complicated cases of tax debt, taxpayers are advised to hire the services of a tax resolution company or tax professional to ensure a successful resolution.

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