According to the IRS, more than 13.2 million Americans owe back taxes. The majority of these cases involve amounts that seem impossible to pay off.
That leaves those tax-owing Americans in a difficult position. They want to pay, but they can't, and the end result is feeling a lot of guilt about the situation. There is no easy way to get out of paying your back taxes. Uncle Sam wants his money, and he'll get it somehow.
There are steps you can take to find a solution and make 2020 the year you finally deal with your taxes.
Note, I always recommend getting in touch with a specialized Tax Resolution Professional to negotiate with the IRS on your behalf. If you’d like to schedule a no-cost confidential tax relief consultation, contact me here.
The longer you wait to pay your back taxes, the more you are going to end up owing. That's because the IRS can and will add penalties that run up to 47.5% of the tax bill. That can add up quickly. The longer you drag out the situation, the more you'll need to pay your tax resolution specialist to help you handle everything. The sooner you act, the sooner you can resolve the issue and the less you'll have to pay.
If you own your home or have equity in it, selling it and downsizing may be the best way to settle your tax debt and get a clean slate. Now is a perfect time, too, with housing prices at a premium in many areas of the country. You can use that cash in the bank to settle your back taxes almost immediately. Additionally, if your home is worth more than you owe, you can then reinvest that money or save it for a rainy day. That gives you a clean financial slate to start rebuilding your life.
Most experts agree we’re due for a recession soon. How soon? Well, no one knows. What we do know is that having a large back tax bill will only hinder your ability to weather a storm in the event of an economic downturn.
You might be able to take a low interest loan out now that the economy is still good and settle your tax bill. Taking care of your taxes while the economy is still good will give you peace of mind and breathing room in case things go south with the economy.
Don't let the burden of back taxes hang over your head any longer. Discover how to solve your tax problem by speaking with Jim Liang.