Happy

Happy and National Drowning Prevention Day! 💰💦 Tax debt can leave you feeling like you're drowning in a sea of financial stress? Like water safety, your taxes require preparation, caution, and smart decision-making.

Here are 3 tips to keep you from drowning in tax debt:



Keep your financial records for at least 7 years. This way, you can easily access past tax returns and documents in case the IRS has questions or audits you.

Set up a budget and stick to it. This will help you avoid overspending and accumulating unnecessary debt.

Consult with a tax professional before your taxes are due. We recommend speaking to your tax professional in October, November, and December in case any adjustments need to be made before the end of the year. Your tax professional can provide valuable advice and help you find deductions and errors that you may have missed on your own.

But what if you're already drowning in tax debt? Don't panic! Here are 5 steps you can take if you already have tax debt:

. Don't panic, but do take action immediately.

Read the notice from the IRS carefully before you pay. The IRS makes mistakes too. You may find errors or discrepancies that you can dispute.

Consider an Offer in Compromise, which allows you to settle your tax debt for less than you owe.

Negotiate a payment plan with the IRS. This can help you avoid penalties and interest charges.

Consider hiring a qualified tax professional to negotiate a resolution on your behalf. They can help you explore options such as an offer in compromise or a penalty abatement.

If you need help with your taxes or have questions about tax debt, don't hesitate to contact DH Financial. https://calendly.com/dhfinancialsolut... .Our team of experts is here to help you stay afloat!