If you've gotten into debt with the IRS, the first thing you need to do is speak to a tax debt service. You might think you can handle the debt on your own, but that's not the case. If you ignore the notices, the IRS has a lot of methods to get the money from you. That's especially true if you don't make payment arrangements fast enough. Some of those methods include wage garnishment, bank levies, and tax liens. If you're not sure how you got into debt with the IRS, read the list below. Here are three ways you can end up owing a lot of money to the IRS.
Failure to Claim Cash Earnings
If you have a side business that pays you cash, you need to report those earnings. If you're like a lot of people, you might think you can avoid paying taxes on cash earnings. That's not the case though. You need to claim all your earnings, including your cash earnings. The IRS has ways to track cash earnings, including those that go through popular cash apps. If you haven't been claiming your cash earnings, it's time to talk to an IRS tax debt service. They can help you get out of debt. They can also help you get caught up on the filings for your cash earnings.
Failure to File Accurate Returns
If you haven't been filing accurate tax returns, the IRS can come after you. That's especially true if the inaccuracies have given you a bigger tax refund. Or, you haven't paid all the taxes you owe on your earnings. If you made a simple mistake on your taxes, you might think you're in the clear. That's not the case. The IRS doesn't care if the inaccuracies were the result of mistakes. They'll still come after you for the tax debt. That's where a tax debt service comes in handy. They'll help you negotiate a payment plan when you get into trouble with the IRS.
Failure to File Tax Returns
If you haven't been filing your taxes, it's time to talk to a tax debt service. If you don't file your taxes, the IRS will start sending you notices. If you file the taxes, they'll help you make payment arrangements. If you don't file your taxes after getting the notices, the IRS will calculate your taxes for you. Then, they'll send you a bill for the tax debt. If that's happened to you, don't ignore the notices. Call an IRS tax relief service right away. They can help you get out from under the debt.
Contact a professional for more information about IRS debt.
