Considerations with IRS Back Taxes

Manuel Davis Jr.
January 16, 2009 — 1,705 views  
Become a Bronze Member for monthly eNewsletter, articles, and white papers.

If you owe back taxes with the IRS it is very important to get them paid off. There are many ways you can pay IRS back taxes or you work with the IRS for a solution that works best for you. The IRS will get their money from you in one way or another.

If you owe IRS back taxes you don't want the IRS coming to you to get them. The first thing you need to do is contact them regarding what you owe. Tell them what you are planning on doing and work with them entirely. You do have many options and the IRS will work with you if they know you are willing to pay what you owe. Owing back taxes to the IRS is not a good thing. If you do not remain in touch with the IRS and try to evade the taxes, eventually they will catch up to you. They have the power to seize assets in your name and any possessions in your home worth the amount of money you owe. The last thing you want to happen is for the IRS to arrive at your front doorstep and begin hauling your furniture and other belongings away.

One option many people consider is hiring a tax professional. If you do not know what you owe because you never did file at all this may be the best option. It is very common for people who avoid filing their taxes to have no idea what they owe. The problem is that years of IRS back taxes gain interest and the numbers may be significantly higher at this point in time. You have to begin paying on these amounts quickly to minimize the total interest you will have to pay.

You can stop collection from IRS back taxes if you can prove a financial hardship. If you are financially in a position that you cannot pay your taxes then the IRS will work with you to temporarily stop any collection efforts against you. This will allow you to keep your car, home, and other belongings while you get back on your feet.

The IRS will work with people on their taxes. They will allow you to make a payment plan and pay off your debts in a manner that is affordable for you. If you owe a significant amount of money in IRS back taxes then they do understand most people cannot write a check for the total amount.

The IRS is also willing to compromise with people regarding their IRS back taxes also. It doesn't matter if you owe to the local state or to the federal government. The method is called an offer in compromise. You will need to be able to pay the amount compromised in full on the date of the deal. The IRS will be willing to take a settlement offer for what you owe. There are a set of qualifications you must meet before they will allow this to happen.

If you owe IRS back taxes you need to take the initiative to pay the amount owed. No matter what your circumstances are you need to call the IRS and tell them what you can do. Some of your options are to hire a professional, set up a payment plan, and prove your inability to pay, or even make a settlement offer.

About the Author

Manuel Davis Jr. is a CPA and Tax Resolution Expert for BackTaxesHelp.com. If you need Help with IRS Back Taxes we can help! Call us at 800-717-2797 or visit our site on more information on resolving tax problems.

Manuel Davis Jr.