Your heart is beating, your mouth is dry, your stomach is in knots – you don’t know what to do. You thought you did when you prepared your own taxes the past several years.  But now, here you are, staring at a letter from the IRS stating you owe A LOT of money.  So, pause a moment, take a deep breath … RELAX.

Not feeling better yet? Well, what if we told you you’re not alone?  Tax problems are not all that uncommon.  And we know, because in our over 20 years of providing Denver tax help, we have seen it all.  From IRS audits, to tax liens, to personal income tax problems, and everything in between; one hundred percent of our business is providing Denver tax help.

If you aren’t feeling relief just yet; perhaps these tips for taxpayers who owe money to the IRS can help.

  1. You may qualify for additional time to pay.  The IRS understands that you probably can’t pay the entire debt right away.  If you can pay the tax in full within a specified amount of time, you may be granted extra time pay the debt.
  2. You may be able to change your W-4.  Another option is to withhold funds from your paycheck each pay period.  This can lessen the burden of having to physically save the money and make sure it gets to the IRS.  (Plus, if you never see the money in the first place, you won’t be tempted to spend it!)
  3. You may pay your debt with a credit card.  Now you might be thinking “Why in the world would I do that?” However, in the long run, it actually could be cheaper to pay in full with your credit card.  It might be wise to compare the IRS interest and penalties that will accrue over time, versus the credit card interest you will be looking at paying over the same period of time, or less. 
  4. You may qualify for an IRS Payment Plan.  If you owe a total of less than $50,000 you might be eligible for a payment plan that works for your budget. 

Advanced Tax Solutions is a local company that can provide Denver tax help it needs. We are constantly educating ourselves on the best practices to alleviate the burden of tax debt.  Contact us today; we can help you find the most proactive solutions available.  Start breathing easy again with Advanced Tax Solutions.