Back Tax Solutions: Tips For When You Get Behind

Posted on 21. Jun, 2012 by in Back Taxes, Help Filing Back Taxes

Everyone has to pay their taxes, but often things happen and people get behind.  The IRS knows this, and they also know that they will not be able to get money where there is none, at least not all at once.  If you owe back taxes and you see no way out, there are options.  You do not have to file bankruptcy or go to jail.  The IRS offers legitimate back tax solutions that can be very helpful, and they will work with you.  After all, they want their money as badly as you want out from under them.

The first option you have is to just pay it.  Of course, this is easier said than done, but if it is at all possible this is much easier than many of the other options.  First, consider if it is really impossible.  Is there anything of value you can sell, or is there a hobby that can be turned profitable, if only for a short time, in an effort to save up the amount owed?  If the possibility exists but the issue is time, file the proper forms to receive and extension and get to saving.  Extensions are not hard to get, and the time and stress saved in the long run is well worth the hard work.

If the debt it simply too great for this to be an option, there are other ways to settle.  The IRS offers two different types of installment plans.  One is a standard installment plan that consists of equal payments usually over 3 to 5 years.  For those budgets that are not able to handle the payment, there is also a step-up installment option that increases the payment over time, presumably as income increases.

Other options include an Offer in Compromise or abatement.  An Offer in Compromise is an option where the IRS accepts less than the full amount owed, and they have strict guidelines for qualification.  For those who meet the qualifications, the amount that is actually paid is cents on the dollar to what is owed.  In abatement, fees and interest are waived, but there are strict qualification standards for that option as well.

Do you need help filing back tax returns?  We are a licensed CPA firm and we can prepare tax returns in all 50 states.  Call us today at 1-888-570-1033.

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