If you owe money to the IRS or haven’t filed in a while, you might be feeling the weight of those unpaid taxes hanging over you.
The good news? It’s never too late to turn things around.
But first, it’s important to recognize and avoid some common mistakes that could make your situation even worse. Here are five tax mistakes that could be keeping you stuck — and how to fix them.
1. Ignoring IRS notices.
If the IRS has sent you notices about unpaid taxes, the worst thing you can do is ignore them. Failure to respond can lead to even bigger penalties, wage garnishments, and even the possibility of liens or levies on your property.
How to fix it: Always open and read IRS letters right away. It’s important to address the issue promptly, even if you can’t pay in full. The IRS is often willing to work out a payment plan if you respond proactively.
If you’re not sure how to respond to IRS letters, reach out to our verified partner, TaxQuotes. They can connect you with experienced tax professionals who know how to handle IRS issues and help you avoid severe consequences.
2. Not filing previous tax returns.
If you haven’t filed in a while, the IRS might be adding penalties for each year you missed. But here’s the thing: filing late doesn’t mean you have to pay the full amount owed right away, and failing to file will only make things worse in the long run.
How to fix it: File your missing returns as soon as possible — even if you can’t pay the full balance. The penalties for not filing are often higher than the penalties for late payment, so it’s better to file late than not at all.
Need help filing back taxes? Click here to find out how to get started for FREE.
3. Not addressing your tax debt soon enough.
Putting off dealing with your IRS debt can lead to bigger problems over time. Interest and penalties accumulate daily, making your balance grow even if you’re not actively adding to it. Waiting too long can also limit your options for resolving the debt.
How to fix it: Take action as soon as you realize you owe money. The longer you wait, the more you’ll end up owing. Work with the IRS to explore payment plans, settlements, or other resolutions.
You don’t have to handle this alone. Our verified partner, TaxQuotes, can connect you with tax experts who can negotiate with the IRS on your behalf, helping you find the best way to resolve your debt without feeling overwhelmed.
4. Not taking advantage of IRS payment plans or settlements.
Many taxpayers assume they must pay their full tax debt upfront or face serious consequences. The truth is, the IRS offers options like payment plans and settlements (like Offers in Compromise) that can reduce the amount you owe.
How to fix it: Don’t assume you can’t afford to pay. There are multiple ways to work with the IRS and get your debt under control in a way that fits your budget.
If you’re unsure about how to set up a payment plan or apply for an Offer in Compromise, TaxQuotes can help. Their team of experts specialize in negotiating with the IRS to find a payment solution that works for you.
Click here to find out if you qualify for IRS forgiveness programs.
5. Not reviewing your financial situation thoroughly.
Sometimes, taxpayers who owe money don’t realize there are financial factors that could help reduce their debt, such as qualifying for tax relief programs or deductions that can lower what you owe. Failing to fully understand your financial situation could mean missing out on potential savings.
How to fix it: Take the time to review your finances in detail, including any potential deductions or credits you may have missed. A tax professional can help identify opportunities for savings or reductions in your tax liability.
Don’t let IRS problems control your life — get expert help now.
If you’re behind on your taxes or dealing with a tax debt you can’t handle, it’s crucial to take action now before things get worse. You have options, and TaxQuotes can help. With their team of experienced tax professionals, you can get the guidance you need to get back on track, and potentially reduce your tax debt.
Just answer a few questions to be connected with a trusted expert who can help you resolve your tax issues quickly, efficiently, and affordably.