Texas residents who fall behind on state or federal taxes may think their tax problems are unresolvable. The IRS and other tax agencies can be frightening when it comes to collections, sending strongly worded notices and threats to seize accounts or property. Thought delinquency is a serious issue, there are things that can be done to protect your future and your finances.
Working with an experienced representative for the negotiation of an offer in compromise is one way to stop collection efforts and get back on track with taxes. The IRS and other organizations may be willing to settle tax debt for less than what is owed on paper, especially if the amount you now owe represents a lot of accrued penalties and interest. It’s usually not a good idea to negotiate with IRS officials yourself; a third party with a deep understanding of tax law may be able to get you the better deal.
Not every tax delinquency comes about because you knowingly avoided paying taxes. In some cases, spouses are hit with tax bills because of actions on the part of their partner. The IRS provides some relief for individuals who can prove they were an innocent spouse in a tax situation.
Once you resolve outstanding tax issues, the best way to protect yourself in the future is to file accurate returns and pay taxes in a timely manner going forward. Even after dealing with a current problem, an experienced tax attorney or advocate can help ensure you pay the right amount of tax, avoiding both overpayments and potential audit triggers at the same time.