How to Navigate Debt and Tax Resolutions

  1. Have your information handy. This includes tax returns, account numbers, and any relevant documentation to your household. The best thing to do is store this safely and securely away when not being used, but you’ll reference this information often.
  2. Balance your budget. Too often people get into trouble because they let slip their spending habits or they get forgetful of when certain bills come due. This trouble can extend to your taxes and cause more problems down the road. Make sure you stick to a spending plan and that you allocate as much as is feasible for a payment plan. This is the fastest way to get out of debt for most people.
  3. A handy tip, particularly if you’ve already cultivated multiple sources of income, is to use your irregular income for your debt payment. Regular or recurring income should be used on regular and recurring expenses. Allow for a small portion of your regular budget to always have the minimum, but when overpaying to get ahead, use your secondary income first so you don’t find yourself in a bind in other ways.
  4. Remove unnecessary lines of credit and clean up your credit report. This can be done by calling credit checking companies and asking for an exhaustive copy of your credit report to find any outstanding debts or open cards that don’t need to be there. Removing the cards and working to consolidate your debt from the credit report is something that might as well be done while navigating your current troubles, as you can often negotiate steeply discounted rates with consolidated, older debt. This is because your debt may have changed hands, as debt gets bought and sold all the time between creditors and collectors. Once you pin down who you owe, you or a professional on your behalf can negotiate the amount they are willing to take, which is often just enough to make their investment worthwhile.

  5. Do your research on tax relief help provider companies and contact a professional. There are several companies that offer debt consolidation and IRS payment plans, but few of them have the expertise and expanse of knowledge as the folks at Tax Defense Partners. Not only do they offer help with state and local tax navigation, as well as debt resolution services, they can even help you if an IRS audit comes your way.  No matter what your tax or debt situation, from liens and wage garnishments to bank accounting and audit representation, Tax Defense Partners has a service that suits your needs. They are one of the best tax resolution companies in the area, with service to boot.