If you have a substantial amount of back taxes, the idea of paying all of your taxes off can feel overwhelming. You might also be subjected to an audit and the IRS will scrutinize all of the sums on your taxes. It might be necessary to work closely with IRS tax resolution services that will not only help you with your audit but may also be able to help you reduce your tax debt.
Gathering Information
When you are being contacted by the IRS for back taxes, one of the first things you will need to do is to find out exactly how much you owe. There might be missing tax returns that you have not filed or you may need to obtain W-2s and other tax documents.
Coming Up with a Payment Plan
When you owe taxes but are not able to pay immediately, it makes sense to enter into an installment agreement. You will be paying your taxes in monthly installments so you can eventually pay off your debts and move on with your life.
It's important to make sure to set up a payment plan that makes sense based on what you are able to pay. You might be able to receive assistance if you are suffering from hardship. You might also be able to settle some of your tax debts. However, to be able to do this, you will want to address your tax debt as soon as possible.
Avoiding Penalties
The IRS will do everything they can to make sure that you pay the debt that you're owed. This includes fining you for unpaid tax debts, garnishing wages, seizing property, and levying your bank account. You might receive letters on a regular basis from the IRS. Fortunately, with the help of an IRS tax resolution service, you might be able to prevent many of these penalties.
Putting Your Tax Debts Behind You
You will want to make sure that you are removed from any active accounts so that you are not still subjected to collective actions. Even if you have paid off a debt, there are some circumstances where debt collectors might continue to attempt to collect a debt that no longer exists. You will also need to make sure that any liens on the property have been removed. Then, your life will be able to return to normal after you have paid off all your taxes.
For more information on tax resolution, contact a professional near you.
