End-of-Year Tips to Settle Your Tax Debt before Next Tax Season

End-of-Year Tips to Settle Your Tax Debt before Next Tax Season

• Dec 15, 2023

As we approach the end of the year, it becomes increasingly crucial to take proactive measures in addressing any outstanding tax debts before the commencement of the new tax season. Failure to resolve these financial obligations promptly can result in compounded penalties and interest, significantly exacerbating the financial burden. At IRS Advocates, our primary objective is to offer comprehensive assistance to effectively settle IRS tax debts for individuals and businesses. Keep reading to get some tips that will help you get your tax debt under control before the next tax season rolls around.

Examine Potential Deductions and Credits

Conducting meticulous end-of-year tax planning involves exploring potential deductions and credits that might reduce your overall tax liability. Contributions to retirement accounts, charitable donations, eligible business expenses, or educational expenses are examples that could potentially lower your tax bill. Leveraging these deductions and credits not only assists in minimizing taxes but also provides additional funds that can be allocated toward settling tax debts.

Explore Various Payment Options

Navigating through tax debts requires exploring the diverse payment options provided by the IRS. Installment agreements enable taxpayers to pay their debts over time in manageable monthly payments. On the other hand, an offer in compromise might allow settlement for less than the full amount owed. Seeking guidance from IRS Advocates can facilitate the determination of the most suitable option based on your financial circumstances and objectives.

Consider Professional Tax Resolution Services

Tax debt resolution involves intricate processes that might overwhelm individuals or businesses without specialized knowledge. Engaging professional services, such as IRS Advocates, streamlines the resolution process and significantly enhances the likelihood of securing a favorable outcome. Our team possesses expertise and negotiation skills necessary to represent your interests and advocate for the most advantageous resolution possible.

Utilize Year-End Bonuses or Windfalls Strategically

If you anticipate receiving year-end bonuses or unexpected windfalls, strategically allocating a portion towards settling your tax debts can be highly beneficial. Using these additional funds to address outstanding tax obligations can substantially reduce the overall debt burden and contribute significantly to achieving financial stability.

Review and Adjust Withholding or Estimated Tax Payments

Ensuring the accuracy of tax withholding or estimated tax payments is paramount to prevent the accumulation of additional tax debts. Regularly reviewing and adjusting these payments can prevent similar situations from arising in the upcoming tax year.

Explore Additional Income Sources

Seeking out additional income sources through side gigs, freelance work, or selling unused assets can provide extra funds to tackle tax debts. Exploring these avenues can offer supplementary resources to address outstanding obligations effectively.

Evaluate Long-Term Financial Planning

In addition to immediate tax debt settlement, developing a comprehensive long-term financial plan is advisable. Collaborating with financial advisors or planners can aid in creating strategies to manage future tax obligations effectively and prevent recurring debt issues. It’s also a good idea to meet with a CPA on a regular basis outside of the usual tax season. This can help you to effectively plan for your taxes, maximizing your tax savings while also allowing you to anticipate how much you’ll owe when you file. This can be an invaluable tool to help you avoid facing overwhelming tax debt in the future.

Utilize Tax Professionals for Guidance

Consulting with our tax professionals at IRS Advocates can provide tailored advice and strategies to address specific tax situations. Our team is equipped to offer personalized guidance and support throughout the tax debt resolution process.

Taking proactive steps to address tax debts before the year concludes is pivotal in alleviating financial stress and preventing further complications with the IRS. Contact IRS Advocates today for a complimentary consultation. Our dedicated team will guide you through the process, explore viable solutions, and empower you to regain control over your financial well-being. Don't let tax debt linger—act decisively to pave the way for a more secure and stable financial future.

Addressing tax debts demands timely action and informed decision-making. Reach out to IRS Advocates today and embark on the journey towards resolving tax debts effectively, securing your financial future, and attaining peace of mind. Once you’ve begun to get your tax debt under control, you’ll be able to approach the coming holidays with greater peace of mind, allowing you to more fully enjoy this special time with your family. Don’t let looming tax debt disrupt your holidays; contact the IRS Advocates today to schedule your free consultation and get your tax debt under control.