If you owe back taxes, you more than likely know it. When you don’t pay the taxes you owe or underpay, you know that you’re going to owe the IRS. When these back taxes continue to grow because of interest and penalties, the problem only intensifies. However, it is important to keep your head up. What you may not understand is that the money you owe to the IRS may be negotiable. You should certainly not try and ignore the problem, because this problem will get worse, not go away. Mark Dicus & Company is here to talk about back taxes and what you can do if you owe them.
Don’t Fail to File Taxes
The first thing we would like to talk about is filing your taxes. When you know that you owe taxes you can’t pay back, it may be tempting to not file. This is the worst thing you could do. You need to file your taxes and then figure out how you can move forward with payment. They won’t come for the money right away. They will first send out a couple letters asking you to please pay what you owe. After that, they will start to get a little more impatient. The worst thing would be to ignore the fact that you owe taxes and fail to file.
Communicate with the IRS
You shouldn’t sit back and wait for the IRS to come after you for your money. The best thing to do is to contact them and talk about what your options are at that point. They are going to want to know what your finances look like. You will need to fill out some forms that document where your money is going. They aren’t going to simply accept that you can’t pay them back without seeing it written out on paper. Your financial condition is going to have a direct impact on any negotiations with the IRS.
Set Up a Payment Plan for Back Taxes
The IRS is good to let you pay them back in payments. There are several different payment plan options that they will go over with you to help you get paid back. There are both short-term and long-term payment plans that you can choose from. If you can prove to the IRS that you simply cannot pay back that money, you may be able to submit and offer in compromise. This means that you will not pay the full amount back. Keep in mind that this rarely works. Less than half of the submissions get accepted.
Tax Preparation, Filing, Planning & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
If you have questions about money that you owe the IRS, you can turn to Mark Dicus & Company to help you find the answers that you need. We have extensive experience in tax preparation and will be able to answer any and all questions that you might have. It is our goal to help you feel good about your taxes. Call us today!