Misconception 1: You have time to act.
One of the biggest (and most dangerous) misconceptions when facing back taxes is that you have time to act. This can lead you to delay paying your taxes at all, and the problem will become worse and worse. The longer you wait, the most problems you’re likely to encounter such as a tax lien or the seizure of property. Acting quickly is the best way to protect your credit score and alleviate the issue before it becomes worse.
Misconception 2: You don’t have any options.
Sometimes the dealing with the IRS can make it feel like you don’t have any options. If you’re struggling to find the funds to pay what you owe, you might feel like you’ve hit rock bottom when it comes to your personal finances. This fear is enough to paralyze many people from acting at all. Remember, if you’re struggling to pay back taxes, you have options. Speak to a qualified tax expert who can help you identify the best plan of action.
Misconception 3: You have to deal with the IRS alone.
The fear of dealing with the IRS can be debilitating. Many people who owe outstanding tax balances are unaware how they can benefit from utilizing the services of a tax advisor. A tax advisor is able to act on your behalf and can mediate between you and the IRS so you don’t have to fear unwanted phone calls or mail any longer.
Misconception 4: You’re the only one with this problem.
One of the hardest parts of facing back taxes is feeling isolated in your problem. It’s normal to feel embarrassed, and these overwhelming feelings can leave you afraid to reach out to others about the reality of your tax situation. It can be comforting to recognize you aren’t the only person facing this problem. According to a 2016 report from the IRS, one in every fifteen people is facing a tax problem.
Misconception 5: You don’t need a professional.
Finally, a lot of people fail to ever seek professional assistance when faced with a tax problem like back taxes. Taxes are complicated, and it can be incredibly reassuring to have a professional with experience on your side in this issue. If you’re unsure how a tax advisor can help you, consider consulting with one to simply discuss your options.
Speak to a tax professional today to determine the best plan of action for your tax situation.