If you are like most Americans who are having trouble keeping up with finances these days, then you may have found yourself a year or two behind on your taxes. Maybe you even skipped filing for a few years, which is not at all unlikely. However, if you find that you have back taxes that have been unpaid, then you have a pretty big problem on your hands that you will need to deal with immediately.
Do You Have to Pay Back Taxes?
Unlike unpaid credit cards or a student loan that is not being paid, when it comes to back taxes, the IRS has a little more power to collect. This means that they can put a lien on your home, lock up your bank account, or really do a lot to make your life a living hell. So, although you don’t always have to pay the entire amount that is due (that can be negotiable), you do have to address the problem.
Where Can You Get Help With Back Taxes?
If you have found yourself being contacted by the IRS on a regular basis, or you know that they will be on your back soon, then now is the time to start looking for help. Finding a tax settlement firm that can negotiate on your behalf is actually quite easy and the amount of money they charge will be minimal compared to what they can save you in the long run. Especially if you are dealing with a large amount of back taxes that are owed, getting help with back taxes is always a good idea.
Do You Have to Pay?
In reality, you will eventually pay at least part of what you owe to the IRS, no matter how sad your story is. By working with a good tax settlement company, you may end up paying only a small fraction of your actual bill.
When a client is the subject of IRS or State collection activity due to an outstanding tax debt, our first step is to stop the collection process. This is true whether it is a wage garnishment, a tax lien, a tax levy or other enforcement effort. The next step of our resolution process is to determine where the outstanding tax debt originated. Outstanding IRS or State tax debts are very often based on incorrectly filed or unfiled tax returns. Filing of all delinquent returns or amending incorrectly filed returns is often the fastest and easiest way to settle a tax debt or substantially reduce the amount of the obligation. We only begin to look at a client’s ability to qualify for one of the various tax settlement options after we verify that the amount of the tax debt is correct. By looking at available settlement options including Installment Agreements, Offers in Compromise and Penalty Abatement we are able to settle most of our cases for an amount significantly less than the originally reported tax debt.