IRS Help 101: Your Possible Back Tax Payment Options

If you owe the Internal Revenue Service (IRS) back taxes you'll be hearing from them in the near future.  The IRS claims that each year Americans who don't pay taxes end up generating about $290 billion in uncollected taxes, and those billions of dollars could be helping fund government programs that are in desperate need of money.  The government has been pursuing people who owe back taxes more aggressively; regardless of if they owe a single year of back taxes or decades of unpaid taxes. 

Don't panic if you owe back taxes.  The government may be going after people that owe the IRS money, but they also provide a variety of payment plans, programs, and solutions for citizens that owe the government tax money.  A tax resolution company would be able to help you find the most efficient and cost effective solution for paying your back taxes.  Listed below are a a few options that a tax resolution company may use.

Installment Agreement

Installment agreements are available to people who can't pay their tax debt in full at one time.  The program allows people who on an installment agreement to make monthly payments until their entire debt is paid back. One thing to note about these agreements is that it takes a long time to pay off debts due to added interest and penalties. These are very often long-term plans as well.

Offer in Compromise

An offer in compromise allows taxpayers to permanently settle their taxes for less than the amount that they owe If you submit in an offer in compromise to the IRS, then the IRS will have to look at several factors like your current level of income, your expenses, and your asset equity.

Advice For People Who Owe State Back Taxes

It's possible for citizens to owe back taxes to the IRS and taxes to their own state.  The process for state tax settlements is very similar to the process for federal tax settlements, but there are a few key differences that vary from state to state. A tax debt resolution company will have each individual’s state information.

*Not a solicitation for legal services*

IRS Problems and Ways to Deal with them

Taxes aren't a seasonal issue, people deal with tax problems throughout the year.  Right now there are thousands of people who are trying to figure out a way to deal with the consequences of filing their taxes late, filing them incorrectly, or refusing to file them all together.  There are a lot of questions going through their minds right now.  Where am I going to get the money from? Am I going to get audited?  Are they going to take my house?  Tax resolution companies and other tax specialists can help you with your tax problems, but people who find themselves in trouble with the IRS this year should do whatever they can to avoid being in the same trouble next year.  When the 2014 tax season rolls around, be sure that you do everything you can to avoid these IRS tax problems.

Back Taxes

One of the most common issues that may arise during tax season is how to deal with delinquent taxes. We all know that our taxes are supposed to be turned in no later than April 15^th of every year. However, for any number of reasons, this may not always happen. When a person does not file their taxes on time, it does not mean they are not still expected to pay them. If you need to take care of any delinquent tax debt it is best to file the return as soon as possible. In the event that you owe more than you can pay, here are a few options : the IRS can set you up with an installment agreement, in which you would pay off your tax bill in more manageable installments.  They may also consider an appropriate settlement or a currently not collectible status.

Audit

There is probably no scarier feeling during tax season then learning that the IRS is going to audit you. There are many reasons a person may be audited,  for instance, the amount you reported making in the previous calendar year.  If the numbers from your 1099 or W-2 do not match the numbers reported on your tax return, the government could potentially launch an audit to figure out what is going on.

Liens and Levies

An IRS tax lien is another rather uncomfortable situation that taxpayers hope to avoid. A lien could be placed on your home or other property until your taxes are paid up. The best way to avoid a tax lien is to simply file and pay your federal tax return on time. You may also see a reduction in your wages as the result of a wage levy placed against you until your tax bill is settled.

*Not a solicitation for legal services*