What if I lose my job?  Is my unemployment check taxable? Can I afford to take money out of my retirement account? These are just a few of the “What If” questions people are dealing with these days.

The IRS recognizes that many people are going through difficult times financially.  Often, there is a tax impact to events such as job loss, debt forgiveness or dipping into a retirement account.  If your income has decreased, you may even be eligible for certain tax credits, such as the Earned Income Tax Credit, which can mean money in your pocket.

Most importantly, if you believe you may have trouble paying your tax bill, contact the IRS immediately. There are steps the IRS can take to help. To avoid additional penalties, you should always file your tax return on time even if you are unable pay your tax bill.

Here are some “What if” questions that are answered on the official IRS Web site.  Simply go to www.irs.gov and type the keywords “What If” in the “Search” box at the top of the page.

Job Related

• What if I lose my job?
• What if my income declines?
• What if I withdraw money from my IRA?
• What if my 401(k) drops in value

Debt Related

• What if I lose my home through foreclosure?
• What if I sell my home for a loss?
• What if my debt is forgiven?

Tax Related

• What if I can’t pay my taxes?
• What if I can’t pay my installment agreement?
• What if I can’t resolve my tax problem with the IRS?
• What if I need legal representation to help with my tax problem but can’t afford it?

We have numerous experts who do nothing everyday except work with people with tax issues and advocate on their behalf to get them out of trouble. We’re good at it. But we can’t perform miracles. Although the results we have brought about make some people think we do. However, when the taxpayer expects a miracle we remind them that the reality is that some debts just have to be dealt with.

In addressing tax problems, the best solution is always prevention. But sometimes there is trouble, and we let you know what can be done and what you can expect from JK Harris.

Above all, let’s share ideas and solutions. You may wish to comment on this blog and the topics presented. But first read the guidelines. We’ll be reviewing comments to make sure they are appropriate and of interest to the blog viewers who come to this for ideas, suggestions and help.

John Harris
www.jkharris.com