Why do we keep having Tax debt problems? Sometimes it is just not paying enough attention to simple things and over time they compound into bigger problems. Below are 3 simple mistakes that people make that keeps them from ending their IRS tax problems.
Mistake #1 – Procrastination
Putting off addressing your tax issues head-on, whether that is just this year’s tax filing or confronting those tax issues that have been hounding you for years, just does not work. Your issue is not going to fall into a crack and disappear. You may not hear about it for a while but when it reappears it will be much worse and more complicated than it was initially. It is much easier and will cost you much less money to be proactive rather than reactive in dealing with the IRS or other state taxing agencies.
2) Not Following Through
So you filed an extension but did nothing after that so your problem never goes away. You hired a company to help you but you have not submitted the requested paperwork so they can file your taxes and plead your case. You have received stacks of letters from the IRS but have not responded. Not following through with your commitments and communication only gets the job half done and that is not good enough for the IRS.
3) No Record Keeping
If you file an itemized tax return you should be a receipt pack rat. Sure it takes time and work, sure you have to put some thought into organizing your expenses but in the long run, it will be worth it. First of all, when it is time to file you have everything ready to turn over to your Tax Preparer or CPA. Secondly, when you keep up with your expenses month to month you are less likely to miss something that could make a difference in your return.
We are here to help our clients resolve and reduce their IRS tax debt. If you have any questions regarding our services please feel free to contact us and we will be happy to talk to you about where you stand and what you need to do to get your tax issues resolved.