Back Tax
What is Back Tax?
Taxes that were not paid in the year that they were due. Taxpayers can have unpaid back tax at the federal, state and/or local levels. Back taxes accumulate interest and penalties on a regular basis.
Unpaid back taxes can be a serious issue for many taxpayers who don’t have the means to pay them. Taxpayers who lack the means to repay taxes may often negotiate a lesser settlement via an offer in compromise with the IRS either directly or with the help from a CPA.
How Can I Get Rid Of Back Tax?
If the IRS has discovered that you owe back taxes, you will hear from them. Getting notices and certified letters demanding money that you can’t pay is horrifying. Ignoring the problem will only make things worse. Our tax experts can help relieve the stress. We will talk to the IRS for you, and we will work out a plan that works best for you and the IRS.
How Can You Help With Back Tax?
Unpaid back taxes can have serious consequences. It is important to hire a professional whose job it is to deal with those consequences. We are a fully licensed CPA firm. We have over 30 years experience and an A+ BBB rating. We have unique solutions to IRS problems. We are trained in negotiation and experienced in tax debt settlement. We have seen and worked thousands of tax cases. We have developed an internal system that will assure that you do not miss any IRS deadlines to pay your back tax.
What Is An IRS Installment Agreement?
A monthly payment plan is generally the easiest way to set up an arrangement to pay off any taxes owed to the Internal Revenue Service. There’s four different types of installment agreements offered by the IRS. The important thing is knowing which installment agreement you qualify for, so that when you or your tax accountant talks to the IRS, you’ll be able to let the IRS know which type of installment agreement you intend to set up.
According to the IRS website you can make monthly payments through an installment agreement if you’re not financially able to pay your tax debt immediately. However, you will reduce or eliminate the amount of penalties and interest you pay and avoid the fee associated with setting up an installment agreement if you pay your tax bill in full. Before you apply:
- File all required tax returns;
- Consider other sources (loan or credit card) to pay your tax debt in full to save money;
- Determine the largest monthly payment you can make ($25 minimum); and
- Know that your future refunds will be applied to your tax debt until it is paid in full.
To keep your account in good standing:
- Pay at least your minimum monthly payment when it’s due (direct debit or payroll deductions make this easy);
- Include your name, address, SSN, daytime phone number, tax year and return type on your payment;
- File all required tax returns on time;
- Pay all taxes you owe in full and on time (contact us to change your existing agreement if you cannot);
- Continue to make all scheduled payments even if we apply your refund to your account balance; and
- Ensure your statement is sent to the correct address.
What Is An Offer In Compromise?
The IRS website states an offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship. We consider your unique set of facts and circumstances:
- Ability to pay;
- Income;
- Expenses; and
- Asset equity.
We generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time. Explore all other payment options before submitting an offer in compromise. The Offer in Compromise program is not for everyone.
Back Tax
Here are some tips for dealing with back tax.
Don’t just file them, you may be contacted by the collection division.
You should pull your R&A going back at least 7 years first.
Consider where you are at with the collection division of the IRS
Often who you speak to at the IRS will only give your point of the story. You can have the whole story for free if you download our information. Please click the link below for help with back tax.