No one wants to be indebted to the IRS. However, sometimes, it is unavoidable. When you owe taxes that you haven’t been able to pay back, it can be a stressful situation. The first thing that you need to remember when you owe back taxes to the IRS is that you shouldn’t panic. There are options that can help you get out of debt. Mark Dicus & Company is here to talk about what you need to do to get caught back up.
Gather Your Tax Documents
For some people, they have their tax documents all filed away nicely. If that’s the case, then gathering your documents should be easy. However, it isn’t uncommon for people to lose their 1099s and other important documents. To gather them, usually all you have to do is look online. Most of these documents can be found there in the digital world that we currently live in. If you can’t find them there, you can always set up an account with the IRS and request a Tax Account Transcript that will give you the info that you need.
File Your Tax Returns ASAP
If you owe taxes and don’t feel like you can pay them, it may be tempting to skip filing all together. This a horrible idea. You want to get your taxes filed as soon as possible to avoid other fees and penalities. If you haven’t filed for years, you can ask the IRS to prepare a Substitute for Return (SFR). The IRS has all the information that they need about your forms so that they know all the income that you have had on record. Keep in mind that you will almost always owe more with an SFR than you would if you just filed them on your own.
Ask for Penalty Waiver if You Owe Back Taxes
In case you didn’t know this, the IRS can and sometimes will waive any penalties that you have accrued. The key to getting these penalties waived is that you have to ask them to do it. They will usually waive your penalties when you have one of two things, a reasonable cause for not paying your taxes or this is your first penalty with them.
Pay What You Can & Set Up a Payment Plan with the IRS
Once you have filed your most recent tax return and know what money you owe the IRS, it’s time to pay what you can. Any remaining balance can be set up on a payment plan. You can choose a short-term payment plan or a long-term payment plan to get your balance taken care of.
Tax Preparation, Filing, Planning & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
If you need help figuring out your taxes and what you owe the IRS, you can turn to the professionals at Mark Dicus & Company to help you sort it all out. We can help you prepare your taxes and get on the right track with your taxes. Call us today!