Tax Matters - The Top Tax Defenders Blog

If you’ve received a notice from the IRS or realized you owe back taxes, you're not alone—and you’re not out of options. Every year, millions of Americans find themselves behind on their taxes for a variety of reasons, from financial hardship to simple oversight.

Whether the IRS has contacted you or you’ve discovered the debt on your own, the most important thing is to act quickly. The longer you wait, the more interest, penalties, and stress you accumulate. This guide will walk you through 10 critical steps to take now if you owe back taxes, and how to minimize damage to your finances and peace of mind.

[Editor's Note: This article was originally published in November 2012 and has been updated for accuracy and comprehensiveness.]

Many taxpayers who owe large amounts of back taxes to the IRS set up IRS installment plans in an attempt to clear up their accounts. These installment plans can be a convenient way to pay off back taxes without putting an unnecessary strain on an individual's budget. While an IRS payment plan may seem like a good idea in theory, there are a few situations where signing up for this type of plan may not be the best solution. Here are some of the advantages and disadvantages of IRS installment plans.

If you've recently been hit with a wage garnishment—or you're worried one might be coming—you're not alone. Wage garnishment can feel overwhelming, but understanding your rights and options is the first step toward regaining control. Below, we answer some more of the most common questions people ask when facing wage garnishment. (Also see part 1 of our wage garnishment FAQs.)

{Editor’s Note: This post was originally published in September 2013 and has been updated for accuracy and comprehensiveness.}

When tax season rolls around, many people look for ways to reduce their bill—and rightly so. But understanding how different tax breaks work can make a big difference in how much you actually save. Two common tools in your tax-saving toolbox are tax credits and tax deductions. While they might sound similar, they work in very different ways. Let’s break it down.

{Editor’s Note: This post was originally published in August 2013 and has been updated for accuracy and comprehensiveness.}

Some taxpayers might feel that they don't need to keep their income tax documents unless they have particularly complex tax situations. The reality is that all taxpayers should keep their essential tax documents on file. Depending on your circumstances, you may need to keep your records for several years, in case of an audit or to back up a claim.

Editor’s Note: This post was originally published in January 2014 and has been updated for accuracy and comprehensiveness.

Having a baby is an exciting life event, but it also comes with significant expenses—many of which start during pregnancy. The good news is that certain pregnancy-related medical costs may be tax-deductible, helping you ease the financial burden. However, not all expenses qualify. Understanding which maternity costs you can and can’t deduct will help you keep better records and maximize your potential tax savings.

At any given time, about 1% of US workers are probably experiencing a wage garnishment. Wage garnishment can feel like a heavy weight on your shoulders, especially if you're trying to regain financial stability. Many people wonder if switching jobs will put an end to their wage garnishment or if there are other ways to stop it. Let’s break it down into simple terms so you can understand your options and take action.

As the calendar winds down and the holiday season approaches, it's the perfect time to reflect on your financial health. Tax planning is a vital part of securing your financial future, and strategic tax planning can unlock significant benefits. Whether you're an individual taxpayer or a business owner, taking the right steps now can lead to substantial savings and peace of mind.