Evaluate your tax situation

How much does the IRS say you owe?

$0
$125,000 $250,000
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$125,000 $250,000
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Evaluate your tax situation

By evaluating your tax situation, you can identify areas where you may be able to reduce your tax burden.

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Washington state may be recovering from the economic crisis, but many of its residents are still struggling with ongoing tax debt. Getting tax relief isn’t as easy as many people would think. Tax debt often grows exponentially, and a very small number can quickly compound into a much larger one. This is further complicated by aggressive collection techniques and an ignorance about ways to reduce debt and to protect yourself from the IRS.

What Happens When the IRS Collects?

The first step in the collection process usually involves a number of certified letters giving the taxpayer the option to pay the debt by certain time or to make payment arrangements. Even with arrangements, the interest and fees can quickly add up and turn $100 into several thousand dollars of tax debt due to back taxes or other mishaps.

When a person is unable to pay, the IRS will often place tax liens against their property or bank accounts. This can freeze assets, and even lead to the immediate possession of things like your home or your vehicle. The IRS can also use tactics like wage garnishment to slowly collect the debt when assets aren’t enough.

How Can You Deal with Tax Debt?

Fortunately, there are ways to stop aggressive collection processes and to reduce the amount owed. You have the option of filing an offer in compromise that will allow you to reduce your and to make a single payment or more suitable arrangements.

For those suffering from their spouse’s tax debt, there is the option of filing for innocent spouse relief. This shifts the responsibility to the person who didn’t pay their taxes and helps to protect the innocent one. If you’re still uncertain of how to deal with your tax debt, it can help to contact a WA tax professional who will discuss your different options.