5 Do’s and Don’ts If You Owe Back Taxes on Maui
Are you worried because you owe back taxes on Maui?
Getting a refund from IRS is a much more common situation, but sometimes business owners or individuals find themselves in the unpleasant situation of owing money to the government instead.
Although this is not an ideal situation to be in, it certainly isn’t a reason to panic. If you owe back taxes on Maui, there are certain things you could do and some that you shouldn’t.
Owing money to the IRS instead of receiving a refund can be scary. Ignoring the situation, however, won’t make it go away and not taking action may worsen your situation instead.
If you owe back taxes on Maui, here are the most important do’s and don’ts to take into consideration.
1. Consult with your accountant right away if you owe back taxes on Maui
Consult with your accountant immediately if you get a letter from the IRS where they ask YOU for a refund. Although less common than what we like to think, sometimes adding your expenses and deductions results in you owing back taxes on Maui.
Your accountant should know what to do and should advise you on the best way to proceed in order to pay your dues and avoid getting in trouble with the government.
2. Don’t ignore the letters sent by the IRS
If you simply ignore the letters sent by the IRS, your ‘problem’ will not go away. You’ll still owe back taxes on Maui, but ignoring the notices may make things much worse.
There are certain consequences that come with turning a blind eye to the situation. Talk to your accountant on Maui as soon as you can and find out more about the consequences that come with disregarding the letters from the government.
3. Set up a payment plan and “show” the IRS you’re doing everything in your power to pay
The IRS may be a scary institution, but as long as you do everything you can to pay up what your owe in taxes, you and your business should be fine.
If you owe back taxes on Maui, you should find out if you qualify to set up a payment plan. Consult with your accountant on the matter and, depending on how much you the IRS, you should be able to find the best solution to your problem.
4. Don’t even consider not filing a return if you owe back taxes on Maui
One of the worst things you can do if you owe back taxes on Maui is get scared and forgo filing your return. Even if you don’t file your forms, you’ll still owe the same amount back in taxes. Furthermore, you’ll incur penalties and interest on the bill until you are able to pay it in full.
5. Save up and pay the taxes you owe to the IRS and avoid taking on more debt
The best thing you can do to get the piece of mind you deserve is to start saving money and pay your bill as soon as you can. However, make sure you avoid taking on more debt than you can handle. If you don’t have the cash right now to cover the amount you owe in taxes, consult with your accountant to find the best solution and avoid making rash decisions you might regret later.