How to Pay Back Taxes
Do you owe back taxes? If so, you definitely need to know how to pay the IRS. Remember, they are not going to forget about you. If you owe money they will get it from you one way or the next.
You’ve prepared your income tax return and you discover that you owe more than you can afford to pay right now. Send in your tax return with a contract to pay in monthly installments.
Are you current with your tax filing? If you’re not, that’s the first step to paying your back taxes. You cannot qualify for many tax programs that will save you money if you are not current. Additionally, failing to file your taxes is a criminal offense. The IRS can take you to court and if you are found guilty you could face 3 years of jail time. Not to mention the huge bill for the court costs. So get caught up!
An installment agreement allows taxpayers to repay their debt in monthly installments. IRS and the taxpayers must negotiate the minimum monthly payments. The trick is to find the middle ground between IRS’ desire to be repaid as soon as possible and the taxpayer’s desire to pay as little as possible. The taxpayers will continue to pay interest, which will still accumulate.
Let the Professionals Show You How to Pay Back Taxes
Tax professionals such as Tax Tiger can advise you on how to pay your back taxes to avoid or stop IRS collection. If you simply cannot afford to pay your back taxes all at once, an installment payment plan can be negotiated with the IRS. If you could never afford to pay your tax debt, you may be able to settle your back taxes for a lower amount.
Offer of Compromise
Offer of Compromise is an agreement between IRS and a taxpayer – if IRS lowers the debt, the taxpayer promises to repay it in full. IRS determines how much debt it is willing to forgive by evaluating the taxpayer’s Reasonable Earning Potential – their ability to repay the debut under their current financial circumstances. Taxpayers will have to repay them debts either partially or in full.