The IRS “What Ifs” for Struggling Taxpayers

The IRS “What Ifs” for Struggling Taxpayers
For the next several weeks, we will be discussing the IRS “What Ifs” for Struggling
Taxpayers.
People facing financial difficulties may find that there’s a tax impact to events such as job
loss, debt forgiveness or tapping a retirement fund. For example, if your income
decreased, you may be newly eligible for certain tax credits, such as the Earned Income
Tax Credit.
They will be in three categories:
o Job Related
o Debt Related
o Tax Related

Most importantly, if you believe you may have trouble paying your tax bill, contact the
IRS immediately. In many cases, there are steps the IRS can take to help ease the burden.
You also should file a tax return even if you are unable to pay so you can avoid additional
penalties.

(IRS Web Site Updated 3/28/22) (TTT 05/31/22)