Having large tax debts that you must pay can be one of the most difficult financial situations that you can face. In addition to there being potentially severe penalties for failure to pay, there are other more aggressive steps the IRS can take to enforce payment of tax debts. As a result, those who are facing this situation will want to act quickly if they are to limit the impacts and damages that this problem causes.
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.
Every year, many people get tax refunds back. Understandably, it can be surprising if you go from getting a tax refund back to having to pay the IRS, instead. This is especially true if you haven't changed your salary. What exactly controls whether you get a tax refund?
Tax Withholding: Why You Often Get a Refund
With every paycheck, your employer deducts a certain amount of tax and pays this. This is an estimated amount of how much you owe, based on the number of dependents you have.