What to do if you're behind on taxes

I just wanted to post a few thoughts today about taxes. Modern media has really demonized the IRS, and it's really unfair and counterproductive, because now when people get behind, they are more inclined to run and hide. The fact is that's the worst thing you can do. The best course of action is to be proactive and contact them first. Have you ever called the IRS? They're really very nice. Much nicer, to be honest, than any collection agency. There's even a new link up on the IRS website about what your payment options are if you can't pay your balance in full by the due date.

And if you're a small business and you have to choose between which taxes to pay and which to allow to be late, always pay your "trust fund" taxes first. These are taxes that you collect from others and hold in trust until the due date, like sales tax you collect from customers, or taxes that you withhold from your employees' paychecks. The money was never yours to begin with, so if you spend it, then don't file and pay on time, the IRS and your state will get really upset with you. That said, if you still can't make the payment on time, be preemptive if you can and contact them first, and they will work with you.