Help to Resolve Tax Issues With Back Taxes
- 1). Hire a certified public accountant or professional tax preparer to review your tax return that resulted in the back taxes only if the back taxes date back less than three years. The tax preparer may find other deductions and credits you may have missed. She can file an amended tax return, which may reduce the amount of back taxes you owe and allow you to pay the debt.
- 2). Hire a tax attorney who specializes in working with the IRS to find ways to either have the back taxes you owe reduced, eliminated or to set up extensions to pay down the debt. If you owe a considerable amount in back taxes that you cannot afford to pay in full, hiring a tax attorney is beneficial.
- 3). Call the IRS at 800-829-1040 to attempt to have the late fees abated, if you have a reasonable cause for not paying your taxes on time. Your reason must indicate that you did not purposely neglect to pay the taxes. Any interest rates accrued from the back taxes cannot be abated.
- 4). Attempt to set up an "offer in compromise," payment plan, or "uncollectible status" with the IRS, based on your financial situation. An offer-incompromise is a settlement, usually lower than the amount you actually owe the IRS. If accepted, the IRS will require you to place a percentage down to lock in the agreement. A payment plan allows you to make small monthly payments based on your budget until the debt is paid in full. You may be required to send the IRS your financial statements and other billing information to verify what monthly amount is reasonable. An uncollectible status is a request to not pay the debt. This requires financial statements and expenses, which shows that you are in a situation where you cannot repay the debt.
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