Tackling Back Taxes in the US, Solutions and Resources You Must Use

Are you facing back tax issues? These are difficult problems that you can’t solve until you have professional help. In this blog, we will talk about how to deal with back taxes and alleviate some of the stress and pain you are feeling inside.

It is better to get an expert like a tax lawyer in Los Angeles who can get you solutions and resources. You must learn how to use them and tackle difficult tax issues. Try to follow the steps we will give you here and get favorable results.

What Are Back Taxes?

Back taxes are taxes that you haven’t paid over the years. IRS has full authority to impose penalties on you and even put interest on your unpaid amount. When you are not settling all these, the total accumulation of money you owe to the federal agency is called back taxes. If you are currently suffering from back taxes, you must address the issue as soon as possible and try to handle things systematically.

Solutions That Are Best Suited for Dealing with Back Taxes

We already know the basics; the time has come to learn about some of the solutions you can have to deal with back taxes.

1.      Try to File Your Return on Time

If you have pending taxes, you must settle them as soon as possible. You don’t want more debt, right? Even if you can’t pay the full amount, pay some of the portions of the debt so that the federal agency has some faith in you. 

2.      Ideal Payment Plans

We need to find the right payment plans for settling our debt with the IRS. You have two major payment plans that you must consider. One is the installment option. Here, you will get some time to repay your debts in installments. If you are happy to pay monthly, this is the ideal solution for you.

Those who are not comfortable with monthly payments will have another option of settling their debt in 120 days. You can choose your favorable option at your convenience.

3.      Are You Familiar with The Offer in Compromise

Offer in compromise is a popular tax-settling option that you may choose. In this method, the taxpayer will not pay the full amount but a major portion of the debt. But not everyone can have this facility.

You can apply for it; the federal agents will check whether you have valid reasons or not. After complete checking, the IRS will decide. Get an expert who can help you with sales tax audit penalties.

4.      Learn about Currently Not Collectible Status

People who are dealing with financial hardship can apply for CNC status. Once you get this status, the IRS can’t force you to pay money. You can have a temporary relief but eventually, you need to find some other options.

5.      What about Penalty Abatement?

When you are not settling your debt, the IRS will eventually impose a penalty on you. If you can show reasonable cause, they will be forced to abate your penalty.

There are many more options you will have. Learn about them in detail, choose the correct way fast, and settle your pending debts with the IRS.