Have you been informed of a tax debt that is owed to the Internal Revenue Service? You may owe thousands of dollars and are now stressing over the situation because you are not sure how to come up with the money that they are requesting from you. Although it is normal to feel nervous about the situation when you are expected to come up with money that you simply do not have, you should try to avoid getting too worked up and simply contact an accountant who offers personal tax resolution services. These services are available to help you get out of the debt situation that you are in with the IRS.
Figure Out Why You Owe Money
You might not have realized that you owed any money to the IRS. For example, if you are newly divorced but were married when your taxes were last filed, there is a possibility that your partner filed those taxes incorrectly. Your partner may have claimed certain deductions or did not report certain items when filing. In fact, your former partner may have known that you owed money as a couple and did not make proper payments to the IRS over the past several years. Improper filing and a lack of payment to the IRS can quickly lead to some major issues. Not only do you end up having to pay for the mistakes that were made, but you will also need to pay interest and potential fines for not paying all the money back when it was initially due. It can quickly cause a financial strain in your life.
Get Help With Properly Handling the Situation
If this is the situation that you are in, the accountant that you hire can talk to you about the innocent spouse tax relief option. It is an option that could potentially help you get out of the situation you are in by proving that you had no knowledge of the mistakes that were being made when filing. Your former partner likely did not report all the income or claimed certain deductions that he or she was not entitled to. If you can prove that you had no knowledge of this and were unaware of the situation, you may be relieved of the responsibility to pay that money back that is owed. Even if you have not divorced your partner, it is still possible to file for the innocent spouse tax relief option. However, your partner would still be held responsible and would still need to work on paying that money back.
While the innocent spouse tax relief option works for some people, it is not the best solution for everyone. For example, if you were the one responsible for filing taxes, you will need to take the responsibility of paying off your debt. An accountant can work with you to figure out the best way to handle things based on your personal situation. There is the option of coming up with a custom payment plan that works for you based on your income. You would need to pay a set amount of money each month to go toward the debt that you currently have with the IRS, but if you let an accountant get you into an IRS debt relief program, the monthly amount will be lower.
Finding out that you owe money to the IRS may have been surprising, but now that you know what you owe, you are probably stressing over trying to come up with the money to pay it all back without falling into deep debt. The best way for you to handle such a serious situation is to find an accountant to talk to about your options. You may be eligible for innocent spouse tax relief or for a debt repayment plan that works best for you.