(MoneyHippo.com) – Every year on April 15, most people in the United States who earned income in the prior year must file their taxes. Neglecting to do so can result in a hefty tax bill, complete with fines and late fees. If you find yourself or your loved one in a situation where you owe money to Uncle Sam, the worst thing you can do is ignore the issue. The longer you wait, the more the problem will grow. Consider the following suggestions.
- Pay the piper: If you can, pay the IRS what you owe. Paying the debt will eliminate any further penalties and late fees and clean the slate.
- Too much: Assuming the tax bill is too high to pay off all at once, the next step is to call the IRS directly. Tell them the figure you believe you owe and ask if you can set up a payment plan. Long-term and short-term repayment options are available, depending on how much you owe.
- Submit the paperwork: Perhaps you didn’t realize you made enough to file your taxes for a time, or it slipped your mind for some reason. In that case, you still need to submit tax returns for those years. Hire a tax expert or contact the IRS for guidance on the matter, complete the required forms, and pay any outstanding bills.
Ignoring tax debt can hinder your financial future and could land you behind bars. The best thing to do is face the problem head-on and resolve the issue as quickly as possible directly with the government.
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