Why dealing with tax debt now is a good idea

| Apr 24, 2020 | Back Taxes or Tax Debt

There are numerous Connecticut residents who, for various reasons, are behind on paying their taxes. Letting tax debt go for too long will only increase how much one owes in the end, thanks to penalties and fees that the Internal Revenue Service will tack on. Dealing with tax debt sooner rather than later is always a good idea.

It is recommended that those who have the ability to pay their tax bills in full do so as soon as they are able. This can be done via check by mail or online — online being the faster option. The sooner the bill is paid, the sooner interests and fees will stop accruing.

For those who cannot pay their tax bills in full, various options are available that may benefit their situations. For example, an Offer in Compromise, if accepted by the IRS, will lower one’s tax liability, making it easier to pay off what is owed all at once. Installment agreements may also be available, which would allow one to make small, affordable payments every month. Interest and penalties will continue to accrue until the full amount is paid, however.

Dealing with the IRS, particularly right now, may seem impossible — especially for Connecticut residents who file paper returns. At present, such returns are not being processed, which means interest and fees will keep piling up. With the assistance of legal counsel, the specifics of one’s tax debt situation can be reviewed, and a solution to deal with the matter as quickly as possible identified.

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