Do you or your client have past-due income or payroll tax returns that still need to be submitted? Are there balances already recorded on an individual or business IRS tax account that you have shied away from addressing? Now is the time to take action to bring those tax account issues to the forefront and get them addressed once and for all.

Recently, you may have seen coverage of the Internal Revenue Service’s news release regarding the growing tax gap. Per the IRS’ own data, the gross tax gap (the amount determined to be truly owed versus the amount of tax that is paid on time) increased to $688 billion in tax year 2021. Danny Werfel, the current Commissioner of the IRS, released this statement:

“This increase in the tax gap underscores the importance of increased IRS compliance efforts on key areas. With the help of the Inflation Reduction Act funding, we are adding focus and resources to areas of compliance concern, including high-income and high-wealth individuals, partnerships and corporations. These steps are urgent in many ways, including adding more fairness to the tax system, protecting those who pay their taxes and working to combat the tax gap.”

I wanted to bring your attention to this as it is the last warning shot across the bow for all taxpayers that the Internal Revenue Service will become increasingly aggressive towards taxpayers who are not in compliance with their filing obligations or who have past-due taxes owed that are not being addressed. The IRS Commissioner is warning us that things are about to get ugly!

What do you do, as a taxpayer or a tax professional, to stop the threatened aggression and prevent the IRS’ renewed vigor from negatively impacting your world? Take action! Seek help! Take the steps necessary to be proactive toward a solution to the tax account situation:

1. If you or your client has outstanding income or payroll tax returns, get them compiled and submitted for processing right away. By taking this action, you accomplish two things: first, instead of suffering through sleepless nights over the unknown tax bill that will eventually have to be addressed, you can hone in on an accurate ballpark of the debt that will need to be addressed, and second, you will prevent the IRS from filing substitute returns on your behalf.
2. If you have ongoing tax payment obligations for income tax or payroll taxes, start making the deposits for those obligations immediately. By doing so, you are drawing a firm line in the sand to stop the ongoing accrual, or “pyramiding,” as we refer to it in the tax world, of more taxes owed. At the time of this blog’s writing, we have entered the 4th Quarter of 2023: pay the Individual Estimated Tax Payment that was due on October 15th and/or begin paying the payroll withholding Federal Tax Deposits due at present.
3. Consult with a tax debt resolution professional to investigate the resolution options available. Make sure you are speaking with someone with the knowledge and first-hand experience to know the mainstream options and those off the well-beaten path to ensure your future dollars are leveraged with the incorporation of the resolution option that will most benefit your short-term and long-term plans.
4. Identify the best tax debt resolution plan and put it into action immediately. It always feels good to have a plan, but taking the first step towards making it happen can be tough. Hold yourself to a short action plan timeline and push yourself to get going. The longer you delay starting down the resolution path, the more at risk you are of the IRS taking collection actions on the account.

If this warning resonates with you, the team at Golden Lion Tax Solutions is here to help! We can meet with you to discuss the liability, known or unknown, the taxpayer’s current financial condition, their short- and long-term goals, and the resolution options that best fit the situation. With over 24 years of first-hand experience, we have the knowledge and expertise to ensure each taxpayer is protected from aggressive collection actions as a solution to the past-due tax debt is negotiated.

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Trust. Protection. Wisdom.

Your future and your family deserve the right protection. Golden Lion Tax Solutions will be your advisor and confidant throughout the entire journey. We guarantee to offer you or your business best-case solutions for your tax debt. We are by your side every step of the way. Start now and get your life back.

For help with your tax debts, email contactus@goldenliontaxsolutions.com or call 833-LION-TAX (833-546-6829)

Disclaimer: There are requirements that must be satisfied in order to qualify for some of the tax solutions we discuss on our website. Not all of our services will be suitable for every client. Golden Lion Tax Solutions is here to help you find the most appropriate solution to fit your situation.