IRS Back Taxes: Successful Filing Strategies

Posted on 30. Jun, 2012 by in Back Taxes, Filing back tax returns

As far as the IRS is concerned, those who owe back taxes have broken the law.  It is illegal to not pay taxes on time.  However, they realize that situations arise, and that those that may have purposely broken the law can have a legitimate desire to do better.  While they have the right to exercise legal implications against offenders, they realize that if they want their money they must be somewhat flexible.  Therefore, if you are one that owes IRS back taxes, jail is not the only option.

Start by filing any back tax returns to determine the amount of IRS back taxes owed.  Next, if you cannot pay the amount in full, consider the other options.  Those who have suffered severe hardships that have prevented them from filing and paying their taxes could be eligible for abatement or an Offer in Compromise.   Though it is very difficult to have either of these options approved, it is worth contacting a professional and having them look into it if there has been extreme hardship.

If the qualifications for abatement or an Offer in Compromise are not met, then the entire amount is going to have to be paid.  There are manageable options for paying IRS back taxes, and finding one that fits your needs is not as hard as it may seem.  First, if there is any way to sacrifice and simply pay it, that is best.  This reduces interest and fines and therefore the total amount that must be paid in the long run.  If there is anything that can be sold, or if there is potential for additional income in the short term that can contribute, ask for an extension and get to work.

If this is simply not an option, there are two payment plans that are available for IRS back taxes.  Equal monthly installments are available for most anyone, and they usually last from 3 to 5 years.   For those who may not be able to handle the payment right way, a step-up payment plan is available in which the monthly payment increases over time.  Do not delay.  Find the solution that works for you and put it in motion today.

Do you need to file a 2008 tax return?  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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