Strategies For IRS Problems

Dealing with IRS tax debts can be a stressful problem. Here’s what one reader said about his tax debt problem:

“I owe the IRS about $30,000 for the last two years of tax returns. I have already filed the return, but I am considering the amending the return to take advantage of tax deductions I overlooked in my haste to file the returns quickly. I am also reading about Tax Amnesty. Are there special CPA’s out there who deal only with this scenario? I have seen a lot of ads promising tax freedom, but I don’t want to cheat the government or to reduce my debt to nothing. I just want to try as hard as I can to pay this. Where should I start looking?”  Billy, Ohio

The problem that Billy and many others face can be easily managed using the following steps.

  1. Decide to handle this yourself or hire a tax professional.
  2. Double-check your original tax returns. If you overlooked some deductions, it will be worthwhile to amend your tax return so you can lower the amount you owe.
  3. Choose the tax debt plan that best suits your current financial situation.