Celebrities tax trouble seem like a never ending saga with some having their bank accounts seized by the Internal Revenue Service like troubled child star Lindsay Lohan or Wesley Snipes. There are ways to avoid liens and orange jump suits though, and it all boils down to being organized and handling your business accordingly.
- Don’t Ignore The Letters: If after filing your taxes you see that you owe and you don’t have the means to pay immediately, make arrangements. Tax situations don’t just occur. They happen over time. Call the IRS as they have installment agreements and extensions available.
- Try Fresh Start: Having a rough financial year? The IRS has a program called fresh start which got fresh legs when the recession hit to help those who are struggling to keep it together. Underemployed folks with large tax bills could get extra-penalty free time for what they owe. It also offers more flexibility for payment plans.
- Take Another Look: Like any government agency, the IRS does make mistakes. So, make sure you take a look at your returns to ensure that the math is correct, that they have your correct information, etc. Don’t take the agency’s word for it, review for yourself. An easy way to do this is to keep your tax and financial records organized throughout the year.