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How to Avoid a Surprise Tax Bill & What To Do If You Receive One | Reaction Tax Resolution Services NYC

irs tax bills

Tax filing season is here again, and millions of hardworking Americans already dream of those extensive refund checks. Unfortunately, many of them may be disappointed this year.

Taxes can be a complicated and often stressful aspect of personal finance. Nobody wants to be caught off guard by an unexpected tax bill, but it can happen for various reasons.

So, what can you do if you find yourself in this uncomfortable situation? How can you avoid ending up with a big tax bill this year? Here are some tips to help you avoid a tax bill and advice on what to do if you get one. First, let’s start with how to avoid a surprise tax bill.

Keep track of your income and expenses throughout the year. One of the best ways to avoid a surprise tax bill is to stay on top of your income and expenses throughout the year. Keep track of all sources of income, including wages, self-employment income, and investment income. 

Then, keep receipts and other documentation for expenses you can deduct from your taxable income to ensure you have all documentation for your case if a surprise tax bill does come up.

Adjust your withholdings

Make sure your employer withholds the correct amount of taxes from your paycheck. You may need to adjust your withholdings if you’ve had a significant life change, such as getting married, having a child, or changing jobs. Use the IRS withholding calculator to ensure you’re withholding the correct amount.

Pay estimated taxes

If you’re self-employed or have other sources of income that aren’t subject to withholding, you may need to pay estimated taxes throughout the year. The IRS provides forms and instructions for calculating and paying estimated taxes.

Review your tax return

Review your tax return from the previous year to ensure you have noticed all deductions and credits. This can help you avoid overpaying your taxes and receiving a surprise tax bill.

If you are in tax trouble (even with years of unfiled tax returns), contact our expert tax resolution firm for a free, no-obligation consultation. Contact us now. While you wait to have your consultation, here are a few steps you can take to help you in your situation.

Review the bill & determine the reason for it

Carefully review the bill to ensure everything is accurate. As you are reviewing your account, identify the reason for the bill. It could be due to an error on your tax return, an unexpected income change, or a tax law change.

Consider your options

If everything on the bill seems accurate and you are at fault for what the IRS claims you owe, you have a few options. If you can’t pay the bill in full, consider your options for resolving the debt. You can set up a payment plan with the IRS, negotiate a settlement or a few other options to help you. However, please do not ignore this tax bill, as the IRS can relentlessly collect what they believe is owed to them, and ignoring the situation will make it much worse.


Seek professional help

Please do not contact the IRS without representation; they can intimidate the average taxpayer and are not on your side. If you need help with how to proceed or need help to negotiate with the IRS, consider seeking help from a CPA, Enrolled Agent, or an attorney who is also a tax relief specialist.


We have years of experience helping taxpayers like you resolve IRS and State tax problems and negotiating the best deal on your behalf. If you owe the IRS money, contact us for a consultation to learn about your options. 


By taking steps to avoid a surprise tax bill and knowing what to do if you receive one, you can minimize the impact on your finances and avoid future surprises. Remember to stay organized throughout the year, review your tax return, and seek professional help if necessary.

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