The tax code is notoriously complex, and it can be difficult to know if you are taking all of the deductions and credits that you are entitled to. This is where working with a tax professional can be helpful.

A tax professional can help to ensure that your taxes are filed correctly and that you are taking advantage of all of the deductions and credits that you are eligible for. In addition, a tax professional can help to answer any questions that you may have about your taxes. As a result, working with a tax professional can help to ease your stress

5. Work with a Tax Professional

Settlement Agreement

If you’re unable to pay your taxes, the IRS may also offer you a settlement agreement. Under this agreement, you would pay a portion of the taxes you owe, and the IRS would forgive the rest. To be eligible for this program, you must:

• Owe less than $50,000 in back taxes
• Be current on all tax filings
• Have no outstanding tax liens

If you meet these requirements, you can submit an offer in compromise to the IRS. The IRS will review your submission and determine if it is acceptable.

Another option for taxpayers who owe back taxes is to request a hardship extension. This extension allows you to pay your taxes over a more extended period, typically three to five years. To qualify for this extension, you must prove that paying your taxes in full would create a financial hardship.

Proving your financial situation to be critical is vital in being approved for the hardship extension. 

For the IRS, a hardship is more than not having the finances for dining out and new clothing; financial hardship should show that a taxpayer has difficulty paying for necessary and reasonable living expenses. Taxpayers do not need to show that they are currently experiencing financial difficulty. Even showing the mere possibility of hardship can be enough for the taxpayer to get approval for the IRS hardship program. 

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