Common Tax Problems and How to Solve Them

For the majority of taxpayers, having to deal with the IRS can only mean that they are in trouble. Even when it sounds worse than it is, there are some very common tax problems that we might have to deal with if we’re not careful. However, having a tax professional on our side is the best way to solve these problems. If you are going through any of this, get in touch with us and we’ll go over your situation.  

One of the most common tax problems is having past-due tax returns that we haven’t filed yet. Being unable to pay the backtaxes and penalties we might have accrued is quite common, too. In more serious cases, the IRS might levy our bank account. Also, having an IRS officer wanting to meet with us can only mean we are in trouble. Nevertheless, remember that all these situations can be easily solved if we work with the right tax professional.  

Past-Due Tax Returns 

One of the most common tax problems we might be facing is having past-due tax returns. Everyone’s situation can be different, and whether you forgot to file, or just didn’t have the time, this has to be addressed as soon as possible. Since we are subject to penalties and interests, acting urgently is quite important. Once we file our past-due returns, looking for a payment plan is the next step. In order to get a payment plan that works for you, get together with your tax consultant and have them work something out.  

Backtaxes and Penalties that Can’t Be Paid 

If we failed to submit our tax return for any number of years, chances are we accrued penalties and interests. This can also be the case if we filed our tax return after the IRS due date. Being able to pay back the penalties, interests, and any owed taxes can be difficult. One way to solve this problem is requesting an Offer in Compromise from the IRS. After they evaluate our financial situation, we might be placed in a Currently Not Collectible status.  

Levied Bank Account 

In some cases, the IRS might levy our bank account in order to collect a balance we might owe them. This means that they either placed a hold or a freeze on our account as an attempt to collect a debt. If this is the case, we will receive a notice by the IRS so we can be aware of the situation. In order to get rid of this levy, we will have to pay off any outstanding balance we might have. However, if we can’t cover such debt, we could request a payment plan. We might also submit a financial hardship waiver, and avoid a bank account levy.  

IRS Officer Wanting to Meet 

One of the least common tax problems, though, is having an IRS officer wanting to meet with us. When they come to our home or workplace, it means that we have become a priority for the IRS. Thus, we should not hesitate and finding a professional tax consultant to help us is a must. If the IRS officer gets to contact us, just take their contact information. A tax advisor should take care of the matter for you. This in order to make sure an arrangement can be made.