5 Signs It’s Time to Get Professional Help for Your Tax Debt
Dealing with tax debt can feel overwhelming, and for many taxpayers, it’s hard to know when it’s time to seek professional help. While you may be tempted to handle the situation yourself, there are times when working with a tax professional can make all the difference. In this blog, we’ll explore five key signs that it’s time to get professional assistance for your tax debt and why doing so can prevent the situation from escalating.
- You’ve Received IRS Collection Notices
One of the most obvious signs that you need tax professional help is when you start receiving collection notices from the IRS. These notices could include a reminder of unpaid taxes, threats of a tax lien or levy, or even a notice of intent to seize property. Ignoring these letters won’t make the problem go away—if anything, it can make it worse.
A tax professional can help you understand exactly what the IRS is asking for, advise you on your next steps, and communicate with the IRS on your behalf. Whether it’s negotiating a payment plan or working toward an Offer in Compromise, tax professionals can protect your rights and minimize the impact of these notices.
- You’re Accruing Penalties and Interest
Tax debt grows quickly due to the accumulation of penalties and interest. For each day that your taxes go unpaid, the IRS adds penalties and interest to your balance. Over time, this can increase the total amount owed by a substantial margin, making it even harder to pay off.
If your tax debt is becoming unmanageable due to penalties, a tax professional can step in and help you explore options to reduce or eliminate them. This could include requesting penalty abatement, negotiating a payment plan, or proving reasonable cause for delays.
- You Have Multiple Years of Unfiled Tax Returns
If you haven’t filed your tax returns for several years, your tax situation is likely more complicated than you can handle on your own. The IRS doesn’t forget, and unfiled returns can lead to large penalties, interest, and possibly even criminal charges. Even if you haven’t received notices from the IRS yet, that doesn’t mean they aren’t aware of your missing returns.
A tax professional can help you catch up on your unfiled returns, reduce penalties, and negotiate a payment plan or settlement if necessary. They will ensure that your filings are accurate and that you’re taking advantage of any deductions or credits you qualify for.
- You’re Facing a Tax Lien or Levy
If the IRS places a lien on your property or issues a levy on your bank account or wages, it’s time to bring in professional help immediately. A tax lien can prevent you from selling or refinancing property, while a levy can seize money directly from your accounts or paycheck.
These are serious enforcement actions that can have lasting consequences if not handled properly. A tax professional can help stop the enforcement actions, negotiate with the IRS, and work toward resolving the debt while protecting your assets.
- You Don’t Know Your Options
Navigating the IRS system can be confusing and frustrating. If you’re unsure of how to approach your tax debt, it’s a sign that you need expert help. There are many tax relief programs available, such as installment agreements, Offers in Compromise, and penalty abatement, but knowing which one is right for your situation can be difficult without professional guidance.
A tax professional will evaluate your financial situation, discuss your options, and create a plan that works for you. They have the experience and knowledge to deal with the IRS, ensuring that you get the best possible outcome.
Why Professional Help Matters
Seeking professional help for your tax debt isn’t just about avoiding penalties and reducing stress—it’s about getting a resolution that works for you. Tax professionals, including Enrolled Agents and tax attorneys, understand the complexities of tax law and can navigate IRS processes on your behalf. They’ll ensure that you’re treated fairly and that you don’t pay more than you have to.
Ignoring tax debt only makes things worse, but with professional help, you can take control of the situation and work toward a solution that gets you back on track. If you’re seeing any of the signs above, it’s time to reach out for assistance.
Need Help? Contact Us Today!
If you’re dealing with IRS notices, penalties, or unfiled returns, don’t wait any longer. At My Tax Problems Solved, we specialize in tax resolution services, helping individuals and businesses manage their tax debt efficiently. Contact us today for a free consultation and let us help you regain control of your financial future.
Karla Navarro, EA, CTRC
Founder and principal Enrolled Agent at My Tax Problems Solved. Karla brings a deep well of expertise and a commitment to precision in tax representation to the team.
