Here we are, nearing the end of tax season. It’s been one wild ride. I for one am counting the days until I can turn off my phone, sip on some iced tea, and get lulled to sleep by the wind and bird songs while swinging comfortably in a hammock.
If you can’t reach me on April 19th, well… you know why.
Now, one reason I can take a moment to breathe is that I’ve faced the music on all things tax-related, not only for myself but also for many of my Greater Memphis clients. There are some out there still facing tax stress, for a variety of reasons, but one they’re facing is what I want to talk about in particular today.
Avoiding paying tax debt doesn’t make it go away. And waiting until the deadline is breathing down your neck can really crowd your mental plate when so many other things are on your mind.
Now might be the PERFECT time to drop the weight of tax debt hanging on your neck. Let’s discuss why…
Why Greater Memphis Tax Debtors Should Unload Tax Debt Now
“Resolve and thou are free.” – Henry Wadsworth Longfellow
When you’re in a bind financially because of tough financial situations, facing tax debt can seem so much more difficult. And when difficulty piles on difficulty, avoidance can sometimes be the most appealing strategy. Out of sight, out of mind, right? After all, if you already know you don’t have the funds to take care of your tax debt, it doesn’t really seem worth addressing the issue.
But, truthfully, has avoidance ever really been a good strategy? Maybe initially, but when it comes to owing the IRS you can bet that the penalties and interest will rack up on that sum.
Knowing you can’t pay a tax debt can increase the fear of filing before the April deadline (or the extension deadline for a lot of owers). The reality is that the debt hill can start turning into a debt mountain as failure to file penalties and other increased penalties pile up on it.
So let’s move past avoidance, and finally, take positive action.
Option #1: An IRS Payment Plan
Owe $25,000 or less in taxes and penalties? You can start by applying for an installment plan — and do it online. This streamlines the process quite a bit. Even though interest will continue to accrue, it’ll be manageable. Note: There are situations in which you’ll pay origination fees as the amount is viewed as a loan (technically).
Specify the amount of your tax debt you think you can actually pay every month so you’re prepared to build that into your monthly budget. But be sure to stay on top of your taxes in the future so that you don’t see a recurrence of this issue going forward. Owe state taxes, too? Check in with the state taxing authority to see if they also have a payment installment plan you can take advantage of.
Option #2: Get help from your friendly tax debt specialist
You can always walk through this situation on your own, but the beauty of choosing us is that we understand the tax system. We know how to help you sort out things with the IRS and doing so is why we’re here.
The settlement process is one of our specialties at Memphis Consulting Group, LLC as is determining if you should settle your back taxes
At Memphis Consulting Group, LLC, we specialize in the settlement process and can help you figure out whether or not it makes sense to settle your back taxes for less than you owe.
That said, a tax settlement isn’t always an option. What we do as professional tax debt specialists is help you determine the best option for you by looking at all the possibilities. Tax debt — including penalties and interest — can be overwhelming to face alone, but we eat this stuff for breakfast.
Sometimes having someone on your side makes facing tax debt easier.
We all know staying on track once things are sorted can be the most difficult part of the process. But know that we’ll walk you through and even get you thinking about and planning for the future.
We’ll optimize what we’ve planned by working with you to check your withholding and help you put together a savings plan for the future to prevent this problem from happening again.
Even if you decide not to choose option 2, make sure you’re paying attention going forward. Taking some small steps NOW will ensure that you aren’t caught in the crosshairs of this problem again.
Greater Memphis friend, it’s time to face the problem. And reach out if you do want help to do it well.
In your corner,
Memphis Consulting Group, LLC