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The Biggest Mistake Taxpayers Make

April 24, 2023

Avoiding Paying Back Taxes

One of the biggest mistakes taxpayers make is failing to pay their back taxes. This is a common problem for many Americans, especially those who are self-employed or have multiple sources of income. When you owe back taxes, it can be tempting to ignore the problem and hope it goes away, but this is not a good strategy and will just make the situation worse.

In this blog post, we will discuss the consequences of avoiding paying back taxes and what you can do to resolve the issue.

Consequences of Avoiding Paying Back Taxes
There are several consequences of avoiding paying back taxes. The first and most obvious consequence is that you will incur interest and penalties on the amount you owe. The longer you wait to pay, the more interest and penalties you will accumulate, making it more difficult to pay off your debt.

In addition, the IRS can impose liens and levies on your property, including your wages, your home, car, and bank accounts. This can make getting credit, selling your property, or accessing your funds extremely difficult.

Another consequence of owing the IRS is that it may damage your credit score, making it harder to get approved for loans, credit cards, and other financial products.
 
How to Resolve Back Tax Issues
If you owe back taxes, it is important to take action as soon as possible. The longer you wait, the worse the situation will become. Here are some steps you can take to resolve your back tax issues:

Seek professional help
Do not contact the IRS alone. That’s like going to court without a lawyer. In some cases, you can reduce the amount you owe to the IRS but only a tax resolution professional can help walk you through the maze of dealing with the IRS. If you need help with how to proceed or need help negotiating with the IRS, consider seeking professional help from a CPA, Enrolled Agent, or an attorney who is also a tax resolution expert.

When you are working with a tax resolution specialist firm like ours, we can help you as there are a number of options to resolve your back taxes. The good news is the IRS has several debt settlement options including their Fresh Start Initiative and is generally willing to settle with taxpayers who can prove that don't have the funds to pay the IRS in full.

If you owe back taxes, it is essential to take action as soon as possible to resolve the issue. The IRS offers payment plans and other options for taxpayers who are unable to pay their full tax debt. By working with a tax resolution specialist, you can resolve your back tax issues and avoid further problems in the future.

If you need an expert tax resolution professional who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.
By 7066766659 December 30, 2024
Receiving an LT11 letter from the IRS can be incredibly unsettling. This notice is a serious warning that the IRS is prepared to take tough action to collect unpaid taxes. If you’ve received this letter, it’s important to understand what it means and why you need to act quickly. What is an LT11 Letter? An LT11 letter, also known as the "Final Notice of Intent to Levy and Notice of Your Right to a Hearing," is sent by the IRS when you have unpaid taxes and haven’t responded to previous notices. This letter means the IRS is ready to levy your assets, which means they can legally take your property to pay off the tax debt. This could include money in your bank accounts, your wages, your home, or other valuable belongings. What Can Happen If You Ignore It? If you ignore an LT11 letter, the IRS can take serious actions, such as: Seizing Money from Your Bank Account: The IRS can freeze your bank accounts and take the money. Garnishing Your Wages: Your employer will have to send a portion of your paycheck to the IRS. Taking Your Property: The IRS can seize your house, car, or other valuable items. Damaging Your Credit Score: A levy or lien can hurt your credit score, making it hard to get loans or credit in the future. Why You Need to Act Quickly The LT11 letter gives you only 30 days to respond. Within this time, you have the right to request a Collection Due Process (CDP) hearing. This hearing is your chance to dispute the levy action, propose a different payment plan, or challenge the amount you owe. If you don’t act within these 30 days, the IRS will start the levy process, and your options will be very limited. The Importance of Professional Help Dealing with the IRS and resolving tax problems can be very complex, and trying to handle it on your own can lead to mistakes that might make your situation worse. A tax resolution professional has the knowledge and experience to help you navigate this challenging process. Benefits of Professional Help: Expert Negotiation: A professional can negotiate with the IRS on your behalf to secure the best possible terms. Strategic Planning: They can develop a plan to resolve your tax issues without causing financial hardship. Legal Protection: A professional ensures that your rights are protected throughout the process. If you’ve received an LT11 letter, don’t wait another moment. Contact Advantage Tax Relief immediately at 630-773-3200. Advantage Tax Relief is a skilled tax resolution firm that can help you navigate your tax issues and achieve the best possible outcome. Call Advantage Tax Relief NOW at 630-773-3200 to prevent the IRS from taking your hard-earned money and assets.
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Dealing with an IRS Balance? Reach out to Advantage Tax Relief today to solve all of your IRS problems! Receive expert guidance and support from a professional expert.
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What is a CP523 Notice from the IRS? Receiving a CP523 notice is a serious matter. It’s an official communication from the IRS informing you that your tax installment agreement has been canceled. This typically happens when you fail to make payments or violate the terms of your repayment plan. If you’ve gotten this notice, it means the IRS is prepared to take further action, so it’s critical to understand what it means for your situation. Why You Need to Act Now A CP523 notice signals that your repayment agreement is no longer in effect. Without an active installment plan, the IRS has the authority to initiate collection actions against you, including: Wage Garnishments: The IRS can garnish your wages without additional warning. Bank Levies: They may seize funds directly from your bank account. Liens on Property: The IRS could place liens on your property, affecting your ability to sell or refinance. Ignoring the CP523 notice can lead to significant financial consequences, such as: Immediate Tax Payment Demand: You could be required to pay your entire outstanding balance in full, which can be overwhelming. Escalating Collection Efforts: The IRS can move quickly to enforce collection actions if you don’t address the notice in a timely manner. Damage to Your Credit: Unresolved tax issues can severely impact your credit, making it difficult to secure loans, credit, or even housing. Steps to Take if You Receive a CP523 Notice While receiving a CP523 notice can feel intimidating, there are clear actions you can take to prevent further issues: 1. Respond Promptly: Time is critical. The sooner you take action, the better your chances of avoiding severe consequences. 2. Review the Notice Carefully: Understand the reason your installment agreement was canceled, the amount you owe, and any deadlines for taking action. 3. Evaluate Your Financial Situation: Take stock of your finances and explore your options for resolving your debt. This might include reinstating your installment agreement, negotiating new terms, or looking into other tax relief solutions. 4. Contact the IRS: Reach out to the IRS as soon as possible to discuss your situation and find out what steps you need to take to get back on track. 5. Consider Professional Help: Navigating the IRS system can be complex, but you don’t have to do it alone. A tax professional like John Bruszewski at Advantage Tax Relief can help you negotiate with the IRS, review your options, and work toward a favorable outcome. Don’t Wait – Get Help Now Ignoring a CP523 notice can make matters worse. It's essential to act quickly and seek guidance from a trusted expert. John Bruszewski at Advantage Tax Relief is here to help you understand your options, negotiate on your behalf, and guide you through the process. Call for a Free Consultation Don’t wait until it’s too late. Call Advantage Tax Relief today at 630-773-3200 for a risk-free consultation and get the help you need to resolve your tax issues and protect your financial future.
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