Today, Optima Tax Relief Lead Tax Attorney, Phil, answers a common question we hear from clients: “I resolved my account with the IRS. Now what?”
What It Means to Resolve Your Tax Account
First, congratulations! Resolving your tax account is a big deal. Whether you set up a standard Installment Agreement, secured a Partial Payment Installment Agreement, were placed into Currently Not Collectible (CNC) status, or successfully negotiated an Offer in Compromise (OIC), the result is the same: the IRS is no longer actively pursuing you for unpaid taxes.
But that doesn’t mean your job is done.
Avoid Falling Back Into Tax Debt
Now that you’ve resolved your account, it’s critical to stay compliant going forward. That means prioritizing your current and future tax obligations. If you’re self-employed or don’t have taxes withheld from your paycheck or other income sources, make sure you’re making estimated tax payments throughout the year. If you do have a W-2 job, double-check that your withholding is accurate so you don’t owe again next April.
Stay on Top of IRS Notices and Deadlines
Open your mail, especially anything from the IRS. Staying aware of deadlines and notices will help you avoid penalties, missed payments, or a defaulted agreement. It’s also a good idea to monitor your IRS online account for any updates or changes to your payment plan or account status.
Add an Extra Layer of Protection
If you want help staying compliant, consider signing up for Optima Tax Shield. It’s our ongoing service designed to help taxpayers protect the progress they’ve made, monitor for issues, and stay in good standing with the IRS.
Tune in next week as Phil breaks down another trending tax topic.
If you need tax help, contact us today for a Free Consultation