Back taxes are a slippery slope. They can come about when you don’t pay enough on your taxes, when you fail to report all your income, or when you don’t file a tax return at all. No matter how unintentional, that first step down that back taxes path can seriously cost you. And it can be frightening to try and figure out how deep you’ve gotten once you’ve fallen. So how do you know when you need to reach out for back taxes help? What red flags indicate that you’ve hit the point where expert help in filing your back taxes is your best option?
If any of the following signs ring true for you, you may need professional back taxes help.
1. IRS notices have piled up in your mailbox.
If you have a stack of notices from the IRS about your back taxes, chances are it is time to do something about it. Instead of throwing the next CP14 notice on top of the rest (or worse, tossing it in the trash), reach out for help to put a stop to the endless stream of IRS letters.
2. The IRS has sent debt collectors after you.
While the IRS will stick to sending you notices in the mail, they can assign your case to a private debt collection agency. They will let you know if they do this. However, once it’s done, collectors will bombard you with phone calls and messages about your outstanding debt with the IRS. And as we all know, collections agents can be relentless.
3. Your passport is in jeopardy.
Believe it or not, delinquent tax debt can cause the IRS to deny, limit, or even revoke your passport. Say sayonara to all your travel plans until you’ve worked out a solution to your back tax issue. Once you’ve paid back your debt or made plans to pay back your debt, the IRS can reinstate your passport but it may not be overnight.
4. You lose your refund, your property, or part of your paycheck.
Refusing to pay your back taxes can result in a tax levy, which means that the government could take your property to satisfy your outstanding debt. They can also take your tax refund and even levy your wages in an attempt to regain what is due to them. While the IRS will send you notices in the mail beforehand, a levy can still shake you to your core. That’s why it might be best to consult a professional to help you fix your back tax issue. Keep your property where it belongs – in your hands.
5. The sum of what you owe (plus any penalties) is much higher than you can afford.
If you’ve got back taxes but you can afford your total balance, your best bet is to bite the bullet and make that tax payment. However, this isn’t often the case. Sometimes your overall balance due to the IRS (including any pesky penalties) is much more than you have available in your bank account. In that case, it’s in your best interest to seek out a tax pro who can help you resolve your back tax issue with a solution like debt forgiveness or a payment plan.
If you recognize any of these signs in your life, it may be time to reach out for back tax help. The longer you wait, the worse it can get. Give our tax experts a call today to take the first step towards freedom from back taxes.
*Read the original post on our Tax Defense Network blog