Back Returns? Don’t Put Off Entering Into A Back Tax Settlement

Posted on 20. Aug, 2011 by in Back Tax Returns, Back Taxes, Filing Back Taxes, Help Filing Back Taxes

If you owe unsatisfied taxes, the problem will stick to you like glue and there may be no alternative for you except a back tax settlement.

This sounds pretty harsh and can be a bitter pill to swallow.

However, as the Internal Revenue Service says, “The worst thing you can do is nothing at all.”

So, what can you do?

As always, make sure you have all the facts and documents you need. You may have to decide whether you want to handle the situation on your own or with professional assistance in gaining a back tax settlement.

Just remember, every day you put off securing a back tax settlement is costing you money. This is because there is more to pay IRS than just the back tax. There is also the matter of penalties and interest.

For example, there are penalties related to a failure-to-file and a failure-to-pay.

If you file a return more than 60 days after the due date, the minimum penalty is the smaller of $135 or 100% of the unpaid tax.

If you fail to pay your taxes by the due date, there is generally a failure-to-pay penalty of ½ of 1% of the unpaid taxes for each month or part of a month after the due date that the taxes are not paid. This penalty can reach 25% of the unpaid taxes.

What back tax settlement options are both available and realistic?

First, you should take a careful look at your current financial situation and also project out over the next two or three years. Determine how much money you can initially pay and what you can afford to pay on a regular monthly basis without fail.

It is probably worthwhile to research the possibility of securing a so-called tax debt loan. The problem here is that the lending institution invariably is looking for collateral in the form of home ownership. For various reasons, this may make such a loan unrealistic.

In any case, you should always turn to IRS and learn what options they can give you for a back tax settlement.

These IRS solutions can take the form of an Installment Agreement or an Offer in Compromise. You should learn the details and establish exactly what is available in your circumstances.

You may want to consult a tax profession, whether it is a certified public accountant (CPA) or a tax attorney.

In a nutshell, agreeing to a back tax settlement may, at first, jangle your nerves but it is likely that your sleepless nights will become a thing of the past.

Filing back tax returns is what we do.  Our experienced team of CPAs and tax professionals know how to deal with IRS tax issues.  We will work on your behalf to settle your tax problem in your favor.

Your tax problem will certainly not go away on it’s own.  Call us now at 1-888-570-1033 for a FREE consultation.

Tags: , ,

Comments are closed.