The biggest hurdle in coming into tax compliance

It seems to me that the biggest hurdle in coming into tax compliance is readjusting our living expenses, balancing our budget, so that we are able to live off of net income versus gross income.  This is especially the case where we have not been filing tax returns or paying taxes for quite a while.

The IRS understands this somewhat and is willing sometimes to give us some time to readjust our living expenses.  It’s not exactly cold turkey but there will be some withdrawal pains in the process.

In the other extreme if we really can’t pay our ordinary living expenses, or we have extraordinary circumstances such as huge medical bills then the IRS will give us time to recuperate and put our accounts on currently not collectible status.

When looking for someone to represent you before the IRS make sure that they have some financial planning skills besides the skills necessary to deal with the IRS.  You still have to make the decision and the choices but it helps to have someone who understands how to guide you in the process.

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