Are you tired of feeling stressed every time you think about your taxes? Well, then, you’re not alone! Many people are over their heads when dealing with tax issues like unpaid bills or confusing paperwork. 

But you don’t have to stay stuck in this cycle. There are real, practical solutions that can help lift the weight of debt off your shoulders.

In this article, we’ll break down the most common tax problems and offer step-by-step strategies to help you get back on track. From setting up manageable payment plans to resolving complex issues, these tips can help you find the financial freedom you’ve been searching for.

Keep reading to break free from your tax woes!

Common Tax Problems 

Tax issues can feel overwhelming, especially when unsure where to start. Many people have similar problems with the IRS. But knowing what you’re dealing with is the first step to fixing it. Let’s break down some of the most common challenges.

• Unpaid dues: Falling behind on payments can quickly snowball. The IRS may add penalties and interest, making it harder to catch up.

• Liens: The revenue agency can place a lien on your property if you owe taxes. This can damage your credit and make it difficult to sell or refinance.

• Garnished wages: The revenue agency can take a portion of your paycheck if you don’t pay your dues. This can leave you struggling to cover your basic expenses.

• Complex forms: Tax forms can be confusing. One mistake can lead to big problems or missed opportunities to lower what you owe.

What to Do: Strategies to Overcome Challenges

Dealing with tax issues can feel like an uphill battle, but there are ways to regain control. Let’s explore some strategies for tackling common problems.

• Set Up an IRS Installment Agreement for Unpaid Taxes:

Owing taxes can feel stressful, especially when you can’t pay the total immediately. Unpaid dues come with penalties and interest, making it even harder to catch up. If left unresolved, the revenue agency could garnish your wages or place a lien on your property.

Thankfully, the IRS has launched the IRS fresh start program to help people with massive unpaid taxes. This initiative allows you to set up an installment agreement. This breaks down your debt into smaller, manageable monthly payments. 

If unsure how to proceed, you can schedule a free consultation call with tax relief experts. They’ll guide you through the process. They’ll also ensure your agreement fits your finances. This way, you can avoid further penalties.

• Handle Complicated Forms and Filing Requirements:

Filing your taxes can be stressful, especially when faced with complicated forms. One mistake or missed detail can lead to delays, penalties, or an audit. For many, the complexity of forms makes the process overwhelming and confusing.

The solution is to break down the process into manageable steps. Double-check each section, ensure all required documents are attached, and take your time. 

If the forms still seem too complicated, there are resources like tax preparation software or guides that can help you avoid mistakes. This approach can help you file confidently. It also reduces the risk of errors that could trigger problems.

• Settle for Less with an Offer in Compromise:

When debt becomes too large to manage, it can feel overwhelming. The longer you wait to address it, the more penalties and interest will accumulate, making the situation worse.

An Offer in Compromise (OIC) allows you to settle your debt for less than the total amount. Keep in mind that qualifying for an OIC can be difficult. The revenue agency will closely review your financial situation. 

It is done to determine if you genuinely can’t pay the total amount. If accepted, this option can offer significant relief, allowing you to pay a fraction of what you owe.

• Remove Tax Liens and Improve Credit:

When you owe taxes and don’t pay, the revenue government can place a lien on your property. This damages your credit. This makes it difficult to sell property, get loans, or even refinance your home. 

The longer the lien stays, the more damage it does to your financial situation. But the good news is, you can get it removed! 

If you enter a Direct Debit Installment Agreement or pay your debt, you can request a Lien Withdrawal. This process removes it from your credit report. This allows you to rebuild your credit faster and regain financial flexibility.

Conclusion

With the right steps, you can take control of your tax issues. Solutions are available, whether for setting up a payment plan, settling for less, or removing a lien. Start today and take the first step toward financial freedom by addressing your tax challenges head-on.

Originally Published on https://www.breakfastleadership.com/

Michael Levitt Chief Burnout Officer

Michael D. Levitt is the founder & Chief Burnout Officer of The Breakfast Leadership Network, a San Diego and Toronto-based burnout consulting firm. He is a Keynote speaker on The Great Resignation, Quiet Quitting and Burnout. He is the host of the Breakfast Leadership show, a Certified NLP and CBT Therapist, a Fortune 500 consultant, and author of his latest book BURNOUT PROOF.