Millions of Americans struggle to pay their taxes every year. Reports suggest that the number is on the rise since 2010, and there are plenty of open tax-debt cases against businesses and individuals being carried forward every year. If you find yourself falling in the same category, do not panic. You simply have to take specific counteractive measures to make the best out of your finances and save enough for the taxes. Here are five easy tips to lessen the burden from your shoulders:

Don’t Ignore the Problem

Even if you stay ignorant of your ongoing issue, the IRS will not exempt or neglect you. Address the problem and try to file your return on time. This will open a lot of options, right from plea to extend the deadline to negotiations. If you do not file your return, this will only add on to your tax debt with penalties. A penalty of 5% is charged on late payments per month, owed up to a maximum of 25% of your total balance.

Be Realistic About Your Tax Situation

Several forms like Form 656 present you with an opportunity to offer in compromise, with easy settlement options for less than what you owe. All you need to do is to prove your financial hardship, and you can easily get qualified for consideration. High preference is given to health issues, catastrophic expenses in the health sector, and/or the low prospect of income in the future due to any recurring problem. Such matters with no alternative can help you get extra help. Just be accurate in your paperwork.

Owe Less than 10,000? Handle it Yourself

Consider the amount before you start asking for help. If the tax amount is lower than $10,000, you can probably handle it on your own, rather than paying for applications and forms. You can opt for the installment agreement, provided under Form 9465 to ensure that you get extra time and slabs to pay your tax in. The plan generally gets you about 36 months to pay off the tax and certain added interest and penalties.

Owe More than 10,000? Hire a Lawyer

If your tax debt has exceeded $10,000, you should immediately hire an attorney to negotiate with the IRS officials. This is to ensure that you get better terms and consideration, instead of falling for expensive promises. However, you should also be careful of whom you’re hiring as your lawyer. Consider licensed online agencies with good user testimonials and compare their fees with that of other agencies to get the best support.

Arrange a Streamlined Installment Agreement

A program was started in 2011 by the IRS to assist in payment of high tax amounts as a streamlined installment agreement. Taxpayers with up to $100,000 debt can opt for this agreement. You should not have entered into an installment agreement in the past five years to avail of this scheme. It is highly beneficial and gives you 84 months to pay off the entire amount. Also, the term should not exceed ten years of assessment, which is the collection statute expiration date.