How To File Back Taxes – Your Options
This article reviews the many ways a taxpayer who owes or who sees they will owe taxes can pay them. There are many different options to pay back taxes including payment plans, the Offer In Compromise (OIC) program, or just how to request an extension.
Tax debt is an ever-growing problem in the United States. It is foolish not to take action when it comes to paying taxes. Failure to explore options leads to the problem becoming increasingly worse. For example, you could be levied and that means your bank account, wages, or personal property can be seized or partially seized. Even if you think you can not afford to pay the IRS, if you work with a professional who can review alternatives for repayment, you will get to the bottom of your tax debt and get it resolved. Here are some alternatives to paying back taxes :
Make A Payment In Full – This is not the easiest thing to do but here are some ways it can be accomplished:
Home equity loans help by shifting your back taxes into your mortgage payment with a lower monthly percentage.
Borrowing money from friends and family. Obviously, do so with the assumed intention of paying them back.
Sell old valuables on Internet sites, such as Ebay. Many people will buy your merchandise if it is in good condition.
Pay using a credit card. Although this may help you initially, do not carry this balance for too long. This balance also accrues interest. Credit card interest is also higher than interest you would accrue on an IRS payment plan.
IRS Payment Plan :
In less than 3 years, with monthly payments, you can pay back taxes. This option requires discipline but monthly payments will get you into compliance with IRS. With this option, you can contact the IRS directory or its easier for a small fee to work with a tax consultant who will represent you.
Offer In Compromise (OIC):
Give evidence or proof that you have no available means of repayment. This will help to show the IRS that you have exhausted other alternatives and can help to reduce your existing debt. An Offer In Compromise is rarely excepted by the IRS. If you are going to pursue this option, then it is best to work with a tax settlement firm because otherwise your OIC will be most likely rejected.
File For A Tax Extension:
Filing a request for an extension can give you time to make the necessary income to pay back State or IRS taxes. You can easily do this for a small fee (around $60) by filing an extension online. Many websites offer this service. It will usually give you 45 days before interest starts accruing so this option is only good if you feel in the next 45 days you will get the money to pay.
If there is a will, there is a way. Talk with an experience IRS professional to explore other means of repaying tax debt. Not filing is worst than admitting to the IRS that you can not afford to pay your taxes. A tax professional will be willing to work with you. They want to save you money, time, and headache. They will work with you diligently in order to do so.
Paying Back Taxes
If you need help paying back taxes visit our site (link) above or call 1-800-717-2797 for a free consultation with no hidden fees or obligation.
| By Manuel Davis Jr Published: 1/17/2009 |
As April 15th draws nearer, no doubt taxes are on your mind. You may be wondering whether the recently passed American Recovery and Reinvestment Act (aka the "Recovery Act") will affect your taxes for 2008.
Va. tax collections remain weak through February
Personal income taxes, which account for about two-thirds of all general tax collections, were flat – a 1 percent increase over February 2008 – compared to January’s 16-point dive that rattled lawmakers and the Kaine administration.
Lil Kim Owes Nearly $1 Million In Back Taxes
The tax debt was racked up from IRS liens and non-payment over the years, dating back from February 2004 all the way up to April of 2008. The paper published these records of what’s owed: – The state of New York filed a $12599 tax [...]
IRS seeks $227 million in back taxes from Stanford
The US Internal Revenue Service has asked a judge to let it to continue to seek unpaid back taxes from Allen Stanford, the billionaire Texan accused of an $8 billion fraud…
Like this post? Subscribe to my RSS feed and get loads more!
No comments yet