Tax debt is one of the most stressful financial challenges an individual or business can face. Unfortunately, it’s more common than you might think. Every year, countless taxpayers find themselves owing the IRS back taxes for a variety of reasons. The good news? These issues are resolvable. At TaxWorx, we specialize in helping individuals and businesses in Fort Worth and beyond get back on track.
Here are the top five reasons people owe back taxes—and how you can start addressing them today.
1. Failing to File Tax Returns
Life gets busy, and sometimes filing tax returns can slip through the cracks. Unfortunately, failing to file can lead to significant penalties and even IRS enforcement actions.
How to Fix It: File your past-due returns as soon as possible. If you’re unsure where to start, we can help you locate missing documents and ensure your filings are accurate.
2. Underreporting Income
Whether it’s forgetting to report income from side gigs or misunderstanding tax laws, underreporting can lead to a hefty tax bill once the IRS catches up.
How to Fix It: Amend your returns to correct errors and negotiate with the IRS if penalties have been applied. TaxWorx can review your returns and identify the best way to resolve the issue.
3. Unexpected Taxable Events
Major life events—such as selling a property, withdrawing retirement funds early, or receiving a large settlement—can create unexpected tax obligations.
How to Fix It: Work with a tax resolution expert to explore options like payment plans or penalty relief. We’ll guide you through managing the fallout of these surprises.
4. Self-Employment Tax Mistakes
Freelancers, contractors, and small business owners often struggle with accurately calculating and paying self-employment taxes. Without proper planning, it’s easy to fall behind.
How to Fix It: We’ll help you reconcile your records, ensure compliance moving forward, and develop a manageable plan to pay off what you owe.
5. Inability to Pay
Sometimes, taxpayers simply can’t pay what they owe due to financial hardships, leaving them overwhelmed by interest and penalties.
How to Fix It: The IRS offers solutions like Installment Agreements and Offers in Compromise. At TaxWorx, we’ll assess your situation and fight for the most favorable resolution on your behalf.
How TaxWorx Can Help
Dealing with the IRS can be intimidating, but you don’t have to face it alone. With decades of experience, TaxWorx has helped individuals and businesses in Fort Worth and beyond resolve their tax issues quickly and effectively. Whether it’s negotiating with the IRS, filing past-due returns, or finding the best payment option for your situation, we have the expertise you need.
Take Action Today
Don’t let tax debt weigh you down any longer. Contact TaxWorx at (817) 241-4120 or fill in the form below to schedule a consultation. Let us help you regain your peace of mind and take control of your financial future!