Back Taxes: According to the IRS, more than 13.2 million Americans owe back taxes. The majority of these cases involve amounts that seem impossible to pay off.
That leaves those tax-owing Americans in a difficult position. They want to
pay, but they can’t, and the end result is feeling a lot of guilt about the
situation. There is no easy way to get out of paying your back taxes. Uncle
Sam wants his money, and he’ll get it somehow.
There are steps you can take to find a solution and make 2020 the year you
finally deal with your taxes.
Note, we always recommend getting in touch with a specialized Tax
Resolution Professional to negotiate with the IRS on your behalf. If you’d
like to schedule a no-cost confidential tax relief consultation, contact us today!
Why Now Is the Right Time to Deal with Back Taxes
#1 You’ll End Up Owing Less
The longer you wait to pay your back taxes, the more you are going to end
up owing. That’s because the IRS can and will add penalties that run up to
50% of the tax bill. That can add up quickly. The longer you drag out the situation, the more you’ll need to pay your tax resolution specialist to help
you handle everything. The sooner you act, the sooner you can resolve the
issue and the less you’ll have to pay.
If you need help from a CPA, enrolled agent or a lawyer who is also a tax
resolution professional, look for someone that will charge you a flat fee
rather than an hourly rate. Some cases take longer to resolve, so it’s
important to know up front what you’ll be paying in service fees to get your back tax issue resolved.
#2 Housing prices are at an all time high. Time to cash in?
If you own your home or have equity in it, selling it and downsizing may be
the best way to settle your tax debt and get a clean slate. Now is a perfect
time, too, with housing prices at a premium in many areas of the country.
You can use that cash in the bank to settle your back taxes almost
immediately. Additionally, if your home is worth more than you owe, you
can then reinvest that money or save it for a rainy day. That gives you a
clean financial slate to start rebuilding your life.
#3 Economic Uncertainty
Most experts agree we’re due for a recession soon. How soon? Well, no one
knows. What we do know is that having a large back tax bill will only hinder your ability to weather a storm in the event of an economic downturn.
You might be able to take a low interest loan out now that the economy is
still good and settle your tax bill. Taking care of your taxes while the economy is still good will give you peace of mind and breathing room in
case things go south with the economy.
Don’t let the burden of back taxes hang over your head any longer. Discover
how to solve your tax problem by speaking with our tax relief professionals. Contact us today!