Standing Together to Take the Taboo Out of "Tax Debt"

The phrase "tax debt" used to be said in hushed tones between a client and their tax professional behind closed doors. It was a secret that the client often felt afraid to say out loud for fear of judgment by everyone around them. Let me be the first to pull out my ball-ping hammer and shatter that antiquated notion with some facts:

• The IRS has revealed that in tax year 2022 alone, over 6.0 million taxpayers incurred new tax debts.
• In 2021, it was estimated that over 22% of small businesses across the U.S. owed past-due payroll or income taxes to the IRS.
• The IRS has acknowledged that the tax gap (the amount of taxes known as due versus what has been paid) is estimated to be over $688 billion through tax year 2021.

So, is it an anomaly for someone to have a past-due tax debt issue? Not anymore.

And before anyone gets their feathers ruffled, please know that I am not saying this as some way to sanction an individual not paying their income taxes or a business skipping some payroll tax deposits.

What I am saying is that we have been going through some unprecedented times over the last several years, and what had been our "normal" no longer exists. We have all had to bob and weave in some way to recover and establish a new financial midline. It’s understandable that when weighing financial decisions when things are tight, taxes take the backseat to things like mortgage payments, net payroll, utilities, groceries, etc. And if you or one of your clients was in a situation where a tough call like this had to be made, I do not want you or them to feel alone!

The great news is that there is ALWAYS a solution. There is always a way to agree to terms to address the tax debt, no matter if it stems from payroll or income taxes, whether they are owed to the IRS or state, or if they are owed for an individual or business taxpayer account. The key is to take the first step towards addressing it, whether that be opening the state collection notices stacked at the back of the desk drawer, calling the IRS and asking for an update on the current balances owed, reaching out to a trusted tax professional to ask for help, or calling your client who has a past-due tax debt and offering assistance with finding a way to solve it.

There are lovely, famous quotes about taking the first step:

"The journey of a thousand miles begins with a single step." - Lao Tzu

"You don’t have to see the whole staircase, just take the first step." - Martin Luther King, Jr.

""The secret of getting ahead is getting started. - Mark Twain

Though those can give you a warm, fuzzy feeling and spark a bit of a "can-do" attitude, I think this quote is a more realistic way to look at a tax debt situation:"

"The road to success is dotted with many tempting parking spaces." - Will Rogers

It’s easy to put off thinking about the tax debt until "tomorrow." It’s easy to begin opening the envelopes, then put them back into the drawer until "tomorrow." It’s easy to start dialing the phone number for your trusted professional or the IRS 800 number, then hang up until "tomorrow."

The decisions you or your client make now are going to dictate how long the tax debt continues to be a problem. Your decisions to take (or not to take) the first step will determine how aggressive the IRS or state feels like they need to be in order to get your attention about the debt. Don’t let some outdated taboo feeling about the tax debt keep you from reaching out for help; it’s simply not "a thing" any longer. Open the envelope, pick up the phone, or send a smoke signal to someone for help… whatever method you are most comfortable with, make it "today" instead of some far-off "tomorrow."

And if you or your client need some help to address a tax debt issue, reach out to us. We operate from a "golden difference" inspiration and drive when it comes to working with and representing our clients.

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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.