Jackson Hewitt Tax Service® Survey: Taxpayers Concerned they Won't Be Able to Pay Back Taxes

42% of respondents said they can only pay up to $500 before dipping into savings, credit, or other payment options

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Jul 31, 2019, 09:00 ET

JERSEY CITY, N.J., July 31, 2019 /PRNewswire/ -- A recent Jackson Hewitt Tax Service® survey, conducted by Dynata, shows the biggest fear for those with tax debt is the inability to pay, with 42% of respondents reporting that they fear they won't be able to pay all their past due taxes right away. An additional 29% of respondents stated their biggest fear is that the government would garnish wages or put a lien on their home for having past due taxes.

"With the IRS enforcement budget increasing, there will likely be more focus on audits and collections," said Mark Steber, Chief Tax Officer at Jackson Hewitt. "Owing money to the IRS can be very stressful to taxpayers and we want to help relieve some of those worries with our Tax Debt Resolution service."

Jackson Hewitt's Tax Debt Resolution service is available year-round to clients in select states who have received a notice from the IRS, or a state tax office, stating that they owe money. Jackson Hewitt can assist clients who are affected by wage garnishment, tax liens and levies, or have not filed tax returns. In as little as one business day, Jackson Hewitt can help clients get relief from IRS notices and letters, suspend collection activities, and request a hold on wage garnishments, including tax liens and levies.

"Taxpayers who were surprised by a federal tax bill last year after sweeping tax reform, and weren't able to pay, may be eligible to set up a payment plan before the balance due is recognized as tax debt by the IRS," added Steber. "To avoid these unwelcomed surprises when filing your tax return next year, all taxpayers should work with a Tax Pro to adjust their W-4s to manage their tax burden and set refund expectations."

Other key findings from the survey include:
-     Among the taxpayers who owed the IRS, most paid by using their savings (26%), followed by using their credit card (14%), borrowing money (4%), entered an IRS Installment Agreement (4%), or selling their personal belongings (2%).
-     42% of respondents could only pay up to $500 if they owed the IRS, before requiring assistance of a credit card, borrowing money, setting up an IRS installment agreement, or missing the payment deadline altogether.
-     21% of 18- to 24-year-olds owed taxes for the first time this year, and 27% of that same group paid their taxes using a credit card.

For more information about Tax Debt Resolution, visit jacksonhewitt.com/tax-debt-resolution-services or visit jacksonhewitt.com/officelocator to find the nearest Jackson Hewitt office.

About Jackson Hewitt Tax Service Inc.
Jackson Hewitt Tax Service Inc. is an innovator in the tax industry, with a mission to provide its hard-working clients access to simple, low-cost solutions to manage their taxes and tax refunds. Jackson Hewitt is devoted to helping clients get ahead with Maximum Refund and 100% Accuracy Guarantees. With close to 6,000 franchised and company-owned locations, including 3,000 in Walmart stores, and online and mobile tax solutions, Jackson Hewitt makes it convenient for clients to file their taxes. For more information about products, services, and offers, or to locate a Jackson Hewitt office, visit www.jacksonhewitt.com or call 1 (800) 234-1040.

About Tax Debt Relief
The tax debt resolution services are subject to IRS and state agency taxpayer eligibility requirements, and based on your specific facts, circumstances and unique situation. Based on your case facts, you may not qualify for all of the services that we offer for tax debt resolution, which are based on IRS and/or state agency taxpayer rules. We do not guarantee any particular result with the IRS or any state agency, nor do we guarantee obtaining any result within any particular period of time. The timing and availability of the tax debt resolution services are subject to you promptly providing us, the IRS, and/or any state agency with all of the information, documentation, and any other materials necessary to perform the services, which must be true, correct, and complete. TDR Service not available in: Florida, Georgia, Idaho, Illinois, Maine, Minnesota, Missouri, Montana, New Hampshire, New Jersey, North Carolina, North Dakota, Ohio, Tennessee, Washington, Wyoming. Money-back guarantee is a limited time offer and applies only to Discovery phase fee. Additional fees apply after Discovery phase.

Methodology:
The Jackson Hewitt survey was conducted online by Dynata from April 15-19, 2019, among 1,200 American adults aged 18 and older. Respondents to the survey were selected from those who volunteered to participate in online surveys. One thousand two hundred thirty-three complete surveys were collected using the sample framework based on U.S. Census data for age, ethnicity, gender, region, and income.

SOURCE Jackson Hewitt Tax Service Inc.