Unpaid Taxes – Resolving Your Taxes Owed
No one can run away from taxes they still owe to the IRS. You can guarantee that if you owe money to the IRS, they will eventually figure it out and begin their official notification process and taking various actions to collect money if you do not do anything. Though it may take the IRS a long time to find out an individual owes unpaid taxes, individuals need to realize with the improvements in IRS technology, no one will slip through the cracks and get away with not paying their taxes. Individuals will even be caught it they do not file their returns.
Resolving unpaid taxes
To resolve any unpaid taxes that you might owe, first contact the IRS. To learn the amount of money you owe in unpaid taxes, locate your last IRS notice as it will state the total amount owed as well as if any penalties and interest have been added to the total amount. If you did not receive a notice but filed a return and did not pay, you can contact the IRS directly at 1-800-829-1040. If, for some reason, you never did file returns, you are required to file back taxes. Contact the IRS to get a total amount owed which includes interest and penalties.
One it has been established how much you need to pay the IRS; you need to locate the best course of action to resolve this unpaid tax issue. Your capability to pay, coupled with your current financial situation, will determine what method is beneficial for you to settle any tax debts. It is beneficial to seek professional help from a tax expert. They will file any paperwork and assist in resolving or settling any back taxes owed. Because the IRS handles numerous cases every year of unpaid back taxes, they try to offer options and settlement methods for everyone to ensure they will be able to pay back taxes.
General ways to resolve unpaid taxes:
• Hire a tax professional – tax professionals are trained in IRS tax code. They are employed to assist you with your current financial situation and what avenue is best for repaying the IRS. Even though it can be costly to hire a professional, it is a lot more advantageous to hire a tax professional rather than try to deal with the IRS on your own.
• Pay back taxes – the IRS provides several methods individuals can utilize to pay back taxes. Look at your financial situation to see the best way for you to pay back. Once documentation has been received to fill back taxes, you can establish if you are able to go on an installment agreement, or if you need to look at other tax settlement options.
• Settle taxes owed – there are situations where individuals are unable to pay taxes. In these cases there are other forms of settlement that are utilized by the IRS. There is a list of options you have to work along with the IRS to settle the debt. The IRS understands there are different financial situations and have made different methods to correspond to many of these different situations. In some instances, the IRS will allow you to forgo paying taxes with the hope that your current financial situation will become more stable and you will be able to pay taxes prior to the expiration of the IRS statute of limitations.