If you are in tax debt and worried about your future, it’s time to see a professional.
It’s coming — next month.
The dreaded Tax Day.
For some, it’s the worst day on the calendar.
Because they have tax debt.
Or they are under government scrutiny.
Or they are cheating — perhaps they prefer the term fudging? — their taxes and are concerned about getting caught.
Are you one of these U.S. consumers?
If so, you have reason to be concerned. Today, due to increased vigilance, pressure to increase tax revenue and evolving technology, the Internal Revenue Service is auditing an unprecedented number of tax returns.
Approximately 1 of every 100 U.S. taxpayers will be audited this year. If you’re a big earner, making more than $10 million per year, then you’ll be twice as likely to be audited.
And the punishment for cheating on your taxes can be severe. We’re talking years in prison, folks.
In March, for example, two brothers in Boca Raton, Fla., were sentenced to prison for tax evasion. One will spend the next 42 months in prison; the other will be locked up for 18 months.
So I understand — I’ve seen dozens of clients come into my office in the weeks before Tax Day, pale-faced and nervous, and inquire about what they can do about their tax problems.
Are you going to be one of these people who will stroll into a tax professional’s office?
If so, that is the first step toward winning back your freedom. There aren’t many things as debilitating and joy-killing as having tax debt hanging over your head for months, years, even decades.
I’m going to tell you now what I tell every such client who comes to my office, and what I will tell the new ones who come in this month and next:
“Don’t worry. You have options.”
If you have tax debt, even if you haven’t fully come clean about your previous income and outstanding tax debt, you have options.
You don’t have to go to prison.
You don’t have to lose your home.
You don’t have to pull your kids out of college.
If you owe so much to the IRS that you cannot pay it off, even over time, then we can talk to the government about an Offer in Compromise, which could settle your tax debt for much less than you owe.
If you have tax debt but the ability to pay it off over time, then we can talk to the government about an Installment Agreement.
Again, you have options — many of them, in fact.
But you need to take that first step.
It’s time to see a qualified tax professional.
This tax article was written by Michael Rozbruch. He is a Certified Tax Resolution Specialist, a member of the American Society of IRS Problem Solvers and a Maryland CPA. You can contact him at 866-477-7762 to obtain a free subscription to his newsletter titled The IRS Times & Inquirer.
More Tax Help, IRS News and Tax Relief Tips:
- Pay Off Tax Debt with Offer in Compromise or Installment Agreement?
- Tax Expert Educates About Offer in Compromise and IRS Installment Agreement Plans
- Delinquent and Unfiled Tax Returns? 8 Steps to Resolving Them
- Got Back Taxes? The IRS Payment Plan or Installment Agreement Can Help
- IRS Tax Enforcement Described As Harsh
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