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How to Settle Your Tax Debt in 6 Steps

Life is full of so many stressors, unwanted challenges, unexpected changes (like finding a good work-life balance when you get a promotion), and so many more moments that aren’t ideal. Add in things like tax debt, and you will soon feel like you are drowning in your problems. Don’t worry! We are here to help you settle your tax debt and find yourself on the other side of all of this stress and uncertainty!

 

  1.     Still file your taxes

You may think that since you are already in debt and the IRS is aware of the situation that you don’t need to keep filing and proceeding with your taxes in the future, but you couldn’t be more wrong. You have to continue to stay on top of things and make sure you don’t get even farther into debt. You must act as if nothing has changed and you must keep everything on track and as close to normal as possible. 

  1.     Get expert advice

Depending on how much debt you have, you may need expert advice and help along this journey. If you feel overwhelmed by the amount of debt you are facing, it may be time to seek out a tax attorney to get your affairs in order. They will be able to help you with whatever legal advice you may need and you can be on your way to solving your tax woes! 

  1.     Start on a payment plan

Once you have done your research and spoken with someone about your next steps during this overwhelming time, know that there is still hope and places to find help! Enter: Community Tax! Allow Community Tax to help you get set up with an installment agreement. That will help you get on your way to being debt free, as soon as possible. They can help you to get set up with a variety of different repayment programs and different payable amounts. Which will in turn help you to have a long-term solution to covering your tax balance or the negotiated amount you owe to the IRS 

  1.     Be realistic

Though it won’t be easy, you have to come to terms with the fact that getting out of this debt is necessary to better yourself and your life. It will take time, patience, and dedication in order to get things back on track and back to the status quo. Depending on how far into debt you are, this may hinder you from future financial opportunities. Unfortunately, this is the reality. The good news is that if you stay focused on making your situation better, you can progress and change things up. Be realistic, but don’t give up.

 

  1.     Create a savings plan

By creating a plan and sticking to it, you will be able to see your endgame sooner and more clearly. You may have to cut down on some luxuries like going to the movies and eating out, but you can substitute them with a smaller expense like a Netflix subscription and eating in more frequently. By saving a few extra bucks a day, you can work toward resolving your debt and becoming more financially fit.  

  1.     Make sure this doesn’t happen again

This is not something you want to make a habit of. Make sure you have been documenting where it seems you went wrong, how to continue to save, and how you are feeling throughout the whole process. By referring back to your notes on the subject, you will be able to remind yourself how badly you do not want to be in this position ever again. It will keep you from straying away from payments, and will make it so you can be in the best financial position, in the future. 

Like we mentioned before, this is not going to be an easy journey, but it will be a rewarding one. We hope that you get the help you need, that way you can be released from the tax burden you are facing!

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