If you owe money to the IRS or haven’t filed in a while, it’s easy to feel overwhelmed. But did you know you could actually be making your situation worse?
Here are five tax mistakes you could be making — and how to fix them.
1. Ignoring IRS notices.
Leaving IRS notices unopened can lead to increased penalties, wage garnishments, and even liens or levies on your property.
How to fix it: Always answer IRS letters immediately, even if you can’t pay. The IRS is often willing to work out a payment plan if you respond proactively.
2. Not filing previous tax returns.
If you haven’t filed in a while, the IRS could add penalties and interest for each year you missed, making you owe even more.
How to fix it: File your missing returns as soon as possible, even if you can’t pay.
Need help filing back taxes? Click here to find out how to get started for FREE.
3. Not addressing your tax debt soon enough.
Interest and penalties accumulate daily, making your IRS balance grow even if you’re not actively adding to it.
How to fix it: The longer you wait to take action, 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.
You might think you have to pay the IRS in full, but there are options like payment plans and settlements that can make the debt more manageable.
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 find a 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, leading them to miss out on potential savings.
How to fix it: Take the time to review your finances with a tax professional, who can help identify ways to reduce 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 tax debt, TaxQuotes can help. Just answer a few questions to be connected with a trusted expert who can help you resolve your tax issues quickly, efficiently, and affordably.