How to Reduce Your IRS Tax Balance

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Anything you earn over $500,000 in a given year will be taxed at 37% for the year 2018. Even for those earning less than 500,000 the tax brackets of 32% and 35% seem almost unbearable. 

If your IRS tax balance is out of hand, you may get an IRS notice about owing money that you don’t have. Either not paying attention to how much money you’re making or failing to pay quarterly taxes can get you behind on your taxes.

Instead of drowning in tax debt, keep reading this article to learn how you can dig your way out of the tax hole.

Decreasing Your IRS Tax Balance

No one enjoys owing Uncle Sam, but what is even worse is when Uncle Sam decides you’ve misbehaved and they are coming after you. The IRS has almost unlimited power to come after you and your money when you owe them.

If the IRS has so much power, what can you do to keep your money safe?

This Problem Won’t Just Go Away

You may have been given some very bad advice and are just ignoring IRS notices when they come in. If you ignore the IRS, you won’t be able to negotiate with them and get help. Ignoring the IRS can speed up serious actions such as tax levies.

Don’t Negotiate Without Being Properly Informed

While the IRS must give you information about your rights and what to expect next, you shouldn’t only listen to the IRS information. Speak to a qualified tax professional that deals with IRS tax debt. When you have someone on your side, you’re going to get much better results than if you only listen to the attorneys that work for the IRS.

The IRS isn’t here to help you get out of paying taxes or give you deals. The IRS is there to collect as much tax as possible so they can continue to fund the government and its various programs. Never get confused about who they are in it to help as you go through the process.

Bring a Representative 

Bringing representation with you when you go to meet with the IRS almost always allows you to get better results than going in to speak with them alone. If you meet with the IRS alone, they know you don’t understand all of their jargon and legal speak. Having a representative allows you to even the playing field.

Don’t Just Take Their Word

When you get an IRS tax notice, you might think that it is the end all be all. The truth is that the IRS doesn’t always get things right. You should check to see if you even owe the amount they say you owe.

Working with a tax professional to comb through your taxes and prove or disprove what the IRS claims is important. If you take them at their word, you may be missing out on thousands of dollars that you could keep in your pocket.

Due Process Is Your Right

If you haven’t received any notices yet or you have only received one notice, you can breathe a little easier. The IRS is required to give you due process and make sure that you know you owe back taxes.

You won’t wake up one morning with money in the bank and then all of a sudden have nothing in the bank. While the IRS can still levy and garnish your wages, you must get a notice and have adequate time to make things right.

You can even take the IRS to court. While you are in court with the IRS, they cannot take your belongings or garnish your wages. Until the judge issues a decision, the IRS cannot touch you, your wages or anything that you have.

The IRS will never tell you how to protect yourself or fight against them so that is why it is so important to work with a legal professional. 

Jail Isn’t on the Table

If someone tells you that you can go to jail for not paying your taxes, that simply isn’t true. In the USA, you cannot go to jail for failing to pay your taxes. If you do, however, cheat on your taxes or commit any fraudulent activities then you can go to jail for these actions.

Explore Your Options

When you owe the IRS, there isn’t only one solution. You have many solutions when the IRS is knocking at your door. Some people choose bankruptcy, hardship suspensions, installment payments or offers in compromise.

Look through the different options that you have available to you and see which one makes the most sense for your situation. Not all forms of bankruptcy will allow you to get out of paying your taxes totally. Not all offers in compromise seem like a real compromise.

Every situation is different and that is why you should not use a cookie cutter solution from someone that doesn’t know your situation. If you know you want to pay the IRS back but you don’t have the money right now, you may consider applying for CNC status.

CNC status means currently not collectible. When the IRS deems your status as currently not collectible that means the IRS believes that the amount of money you currently bring in is not enough to pay your back taxes.

CNC status does not mean you will never have to pay your back taxes but it does mean you’ll get some time to gain your footing so you can pay them.

Ready to Strike Back?

When you look at your IRS tax balance, it is easy to feel like you’ve suffered a sucker punch to the gut. Don’t you think it is about time that you get a hit in yourself? Contact us today to see how we can help you strike back and get the help that you need.

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