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Handling tax problems

| Aug 8, 2013 | Tax Controversies

Massachusetts residents who owe the IRS money may be tempted to get in touch with services that promise to save them 90 cents on the dollar. However, most of these deals are too good to be true. When individuals are worried about tax audits, they may end up feeling desperate, but it is important to handle a tax problem in the correct manner. Those who are having issues with their taxes should contact the IRS, look into payment options and seek assistance from a professional.

When someone receives a notice that they owe the government money for back taxes or penalties, the first thing they should do is get in touch with the IRS. An IRS representative can confirm the debt, and they can also let people know what their payment options are and paperwork that will be required to be eligible for these options. One option is an offer-in-compromise. If someone can show that they are unable to pay what they owe, the IRS may agree to a lower payment amount to settle their debt.

Another option is to take advantage of an installment payment program. The benefit of this program is that it gives people more time to pay back what they owe the IRS, but the downside is that interest will continue to accrue until the debt has been paid in full. To prevent interest from making their debt even greater, individuals should pay the IRS as quickly as possible.

Individuals who owe the government money may also benefit from legal expertise. A lawyer could help someone understand how tax law impacts them and what their rights are. Lawyers could also help individuals negotiate a settlement with the IRS.

Source: Fox Business, “The Right and Wrong Ways to Resolve Tax Issues”, Emily Driscoll, August 05, 2013

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