Friday, April 19, 2024      Written by Timothy Perry         

As Tax Day came and went earlier this week, many individuals breathed a sigh of relief after filing for an extension. But for some, that extension can lead to a moment of truth: realizing you owe more to the IRS or the North Carolina Department of Revenue than initially anticipated or planned for. If you find yourself in this situation, you're not alone, and there are steps you can take to address this challenge.

At Carolina Tax Resolutions, we understand the stress and uncertainty that can accompany unexpected tax obligations so we thought we’d offer some help to guide you through the process.

So, what should you do if you filed for an extension but now face a larger tax bill than anticipated?

Key steps to consider:

1. Assess Your Situation: Take a deep breath and assess your financial situation realistically. Understand the extent of your tax debt and any potential penalties or interest that may apply.

2. Contact a Professional: Don't hesitate to reach out to a qualified tax resolution expert like Carolina Tax Resolutions or your CPA if you already have a professional who prepares your taxes. If your tax professional has done their part and you still need help or if you need help with tax preparation and becoming compliant, our team can provide personalized guidance tailored to your specific circumstances, ensuring you understand your options and rights under the law.

3. Explore Payment Options: If you're unable to pay your tax debt in full, don't panic. Various payment options are available, including installment agreements and offers in compromise, which allow you to settle your debt for less than the full amount owed. For high-income earners who may not qualify to get the tax debt reduced, we can often get the penalties and interest waived saving people thousands of dollars.

4. Stay Compliant: It's crucial to remain compliant with your tax obligations moving forward. Failure to do so can result in further penalties and complications down the line. Carolina Tax Resolutions can help you establish a plan to stay on track with your tax filings and payments.

5. Seek Professional Representation: Having skilled legal representation can make all the difference when dealing with tax debts. We can address your tax matters independently or work with your existing tax preparer to get you back on course. Our team of tax attorneys at Carolina Tax Resolutions has the expertise and knowledge to advocate on your behalf and negotiate with the IRS or the North Carolina Department of Revenue (all state taxing authorities for those who have earned income elsewhere). Audits are thankfully statistically rare but it doesn’t feel any less scary when your unlucky number comes up. We also offer audit support and representation.

Remember, facing tax debts can be daunting, but you don't have to navigate this journey alone. Carolina Tax Resolutions is here to provide the support and guidance you need to achieve financial freedom and peace of mind. Our team of skilled and experienced tax attorneys is here to guide you through the process, ensuring you achieve the best possible outcome while navigating your tax debts.

While filing for a tax extension can provide much-needed breathing room, the relief is temporary and it's essential to be prepared for any potential tax liabilities that arise when that final calculation has been completed. By taking proactive steps and seeking professional assistance, you can successfully navigate your tax obligations and achieve a positive outcome. Carolina Tax Resolutions is dedicated to helping individuals like you find relief from tax debt and regain control of their financial future.

Contact us today at 919-916-6000 to take the first step toward resolving your tax issues.