Tax Debt

Tax season can be overwhelming—and for many, it ends with an unexpected surprise: tax debt. It’s more common than you think. Whether it’s the IRS or your state’s tax authority, anyone can find themselves owing money.

What Causes Tax Debt?

  • Under-withholding: If not enough is withheld from your paycheck throughout the year—especially after life changes like marriage, divorce, or a new job—you may end up owing.

  • Self-employment: Freelancers and independent contractors are responsible for both income and self-employment taxes, which can quickly add up.

  • Missed Deductions or Credits: Failing to claim all eligible deductions or tax credits can increase your tax bill.

  • Unexpected Income: Bonuses, freelance gigs, or even inheritances can push your tax liability higher.

  • Simple Oversight: Life gets busy—sometimes people just forget to file or pay on time.

Why You Shouldn’t Ignore Tax Debt

  • Penalties & Interest: The IRS adds fees and interest to unpaid taxes, which can cause the balance to grow fast.

  • Liens & Levies: If the debt goes unpaid, the IRS can place a lien on your home or garnish your wages and bank accounts.

  • Credit Score Damage: Tax debt can impact your credit, making it harder to qualify for loans or other financial services.

  • Emotional Toll: The stress of owing the IRS is real—it can affect your peace of mind and well-being.

The good news? You’re not alone—and you don’t have to figure it out by yourself.
Contact us today. We’ll walk you through your options and help you reduce or resolve your IRS debt—so you can breathe easier and move forward.