If you have not seen “Stranger Than Fiction” yet (you should! …and, well, spoiler alert), the movie features an obsessive compulsive IRS agent who audits and falls in love with a small business owner.
Unfortunately, real life is not like the movies. Your IRS agent is not going to be Will Ferrell, and the very last thing you can expect from the IRS is any sort of romance.
The reality of the situation is much bleaker. Real life is not a comedy, and overdue taxes and crippling debt is going to eat away at you until you do something about it. So what can you do, and where should you start?
At the risk of sounding too zen, the first step of contending with a large amount of tax debt is giving yourself a break.
Most tax debtors are riddled with shame and guilt and, although understandable, these feelings are not doing anything for you.
Remember that taxes are not straightforward. Taxes are arbitrary and confusing. In Alabama, playing cards are taxed at 10 percent. The rules are not clear, and a good deal of people have difficulty understanding tax law.
Stop Ignoring Tax Debt and Take Action
The people who need legal tax help most are, in most cases, also the least likely to ask for it.
Federal taxes have been around since the writing and passing of the United States Constitution in 1787. Then and there, the document granted the federal government permission to impose tax. The Constitution also mandated that a portion of this revenue go to the states in proportion to population. Wherever they end up, you are still required to pay them.
That means taxes have been around for hundreds of years, and they are not going anywhere. Ignoring tax debt will not make it go away.
Understand the Fundamentals
The federal government can tax income at rates from 10 to 39.6%.
Know When to Hire a Tax Audit Lawyer
Get answers to tax questions from professional tax lawyers.
Past due taxes could mean seizure, a type of levy allowing the government to take personal belongings to cover debts. The IRS can also impose levies on bank accounts, wages, accounts receivable, social security payments, insurance proceeds, and more.
“Going it alone” with a levy in the balance is a grave mistake, especially when there a lot of tax audit lawyers and tax help attorneys more than willing to fight with you. Research more here.