There is nothing quite as stressful as owing the IRS money that you don’t have. It seems like the IRS is this big scary agency that has the ability to ruin your life. They do have power to get the money they are owed, whether you want them to or not. They have the power to garnish your wages, take property and even revoke your passport. However, if you owe them money and don’t know how you’re going to pay them, you have options. Mark Dicus & Company is here to talk about your options moving forward when you owe back taxes to the IRS.
What Information Should I Gather for Taxes?
Hopefully, you are one of those people that have all of your tax documents filed together in a folder or cabinet somewhere in your house. If this is you, gathering the needed tax information should be a cinch. If you are missing some documents, you will need to spend some time gathering them. You can usually have access to many documents like W-2 forms and mortgage information online.
File Tax Returns as Early as Possible
For many people that owe back taxes, it can be so stressful that they put off filing the current year or avoid filing all together. This should be avoided and isn’t going to help your situation. Since your situation may be a complex one, it may be wise to avoid filing them on your own and look to professional help in the matter. However you want to file, it should be done on time to avoid digging yourself a deeper hole.
Can I Get the IRS to Waive Penalties & Interest?
Most people are aware that there are penalties when you don’t pay the taxes that you owe, but many people don’t realize that you can ask to have the IRS to waive them. If you fall under these two circumstances, you could have these fees waived.
– First-Time Penalty Abatement: If you are usually good at paying your taxes on time and haven’t been a repeat offender, the IRS may decide they will waive your fees this one time.
– Reasonable Cause: There are certain extenuating circumstances that the IRS will see fit to waive fees for. These may include illness, natural disasters, immediate family member’s death and so on.
How Do I Set up a Payment Plan with the IRS?
After you have filed your taxes and know exactly what you owe, it is time to dig into the back taxes that you owe. You should pay what you can and then set up a payment plan with the IRS for the rest. You can choose either a short term payment plan or a long term payment plan. Your specific tax situation will determine which payment options are available to you.
Tax Preparation, Filing, Resolution & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
If you have questions about your taxes and any back taxes that you owe, the experts at Mark Dicus & Company can help you get it all sorted out. We specialize in tax preparation and are happy to help you. Call us today!