Being self-employed comes with many benefits, but it also means taking full responsibility for your taxes. Without an employer withholding taxes from your paycheck, it’s easy to fall behind on payments and end up owing the IRS more than you can afford. If you’re self-employed and struggling with tax debt, there are solutions available to help you get back on track.
Why Self-Employed Individuals Face Tax Trouble
Unlike traditional employees, self-employed individuals must:
- Make estimated quarterly tax payments.
- Keep track of deductions and expenses.
- Pay self-employment tax on top of income tax.
If you missed tax payments or underreported income, the IRS may hit you with penalties, interest, and aggressive collection efforts.
How to Resolve IRS Tax Debt
If you owe taxes and can’t pay in full, you have options:
- Installment Agreements: Set up a payment plan to pay your debt over time.
- Offer in Compromise: Settle your tax debt for less than what you owe.
- Penalty Abatement: Reduce or remove penalties if you qualify.
- Currently Not Collectible Status: Temporarily delay IRS collection if you’re facing financial hardship.
Get Expert Tax Relief
The IRS takes tax debt seriously, and ignoring the problem will only make it worse. If you’re self-employed and struggling with tax debt, Rappaport Tax Relief can help you find a solution that fits your financial situation.
Call (917) 488-8295 today for a free consultation to discuss your tax relief options.
