Tax Problems can Impact Anyone, Anytime

The thing about tax problems is, it’s difficult to anticipate when you’ll encounter them. That’s because they can arise before, during or after you file your tax returns. Oftentimes, taxpayers don’t even realize they have tax problems until they receive notification from their state tax agency or the IRS.

As with most problems, the easiest way to avoid them is to always comply with current tax laws. But these laws are so complex and constantly change, and that can make compliance a challenge. Without professional help, it’s easy to make mistakes that can quickly become serious and costly tax problems.

How do you know if you have tax problems?

An audit notification is the state or federal taxation authority’s way of letting you know that something on your personal or business tax return just isn’t right. And the tax problems aren’t necessarily with the most recently filed returns, either. Auditors can go back several years in their efforts to locate errors, omissions, miscalculations and other problems on previously filed tax returns. In some cases, further documentation is all it takes to clear up the confusion that triggered the audit. But in other cases, it’s not that simple.

Failure to file tax returns or filing them late are other mistakes taxpayers make that can land them in trouble with state or federal tax agencies. If you need to file back taxes, it’s imperative to do so right away. This won’t put an end to the tax problems associated with late filings, and there’s a good chance you’ll owe money or you’ll be assessed a penalty. But it’s a step in the right direction.

Once the IRS or state taxation agency determines that you owe money, they will demand full payment of the amount you owe. They’ll probably charge interest on that amount, and the interest charged may be retroactive, too. If you can’t pay, your tax problems will be more difficult to remedy, but not impossible.

If you find yourself involved in an audit situation or owing back taxes and stiff penalties, you’ll need to take action – fast. If you ignore the situation, it’ll only get worse. Interest and penalties will continue accruing, so you’ll owe even more than you already do. Keep ignoring the problem, and the taxation agency could impose a tax lien. A tax lien on your credit history will make it difficult for you to obtain affordable financing for a new home, new appliances, or other purposes.

Continue to ignore your tax problems, and the IRS or state tax agency can begin what’s called forced collection procedures. This includes actions like garnishing your wages or seizing your property. These are extreme measures, but they’re legal.

Fortunately, you don’t have to deal with your tax problems on your own. In fact, that’s usually not advisable. That’s because enlisting the help of professional tax attorneys, CPAs and Enrolled Agents, individuals who have experience in the type of tax matter you’re involved in, can work to your benefit.

How can tax attorneys, CPAs and Enrolled Agents help?

They can review your case and help you prepare for your audit. They can represent you if it’s determined that appealing the tax is the right way to proceed. Yes, you have a right to appeal. They can negotiate your tax problems with the IRS or state tax authority to possibly reduce the amount that you owe; that’s called an Offer in Compromise. They can help you work out an affordable installment plan to repay your tax debt, provided you are eligible. They can request that your penalties be abated, which basically means you are no longer required to pay them. They can even help you file your back tax returns. Tax professionals can do all of this and more.

Enrolled Agent Mike Habib has a total of 20 years of experience dealing with all types of personal and business financial & tax problems. As an enrolled agent, Mr. Habib is federally licensed to practice in all 50 states. He can help with your tax problems. All you need to do is ask. Visit or call us at 1-877-788-2937 and schedule your free consultation today.