Finding the Best Method to Resolve Back Taxes

Finding the appropriate method or the best tax expert is essential when it comes to resolving tax debt. Tax Debts should be settled as as soon as possible to avoid future collection actions, including additional penalties and interest.  The sooner you handle your tax problem the better since additional interest is accrued with each passing day on back taxes.  Luckily, today there are many methods out there to resolve your tax debts, even for people with no money at all. Listed below are three steps recommended when you late taxes.

1. Check the tax return that you filed and make sure you did not make any mistakes and miss any deductions.  If you concluded there was a large deduction missed, you can submit an amended return and then receive the new tax amount owed. If you find you do not have any missed deductions or you did have missed deductions and you still can’t pay the back tax move on to the next item.
2. Determine if you can resolve the tax debts, tax liability on your own. If less than $10K is owed in back taxes, it is normally fairly easy to setup some form of monthly payment plan with the IRS or state. The payment plan the IRS will want you to set up is an installment agreement. An installment agreement will allow you pay the back taxes back in smaller incremental amounts over a specified amount of time. An installment agreement is the easiest form of settlement to attain but there are other ways to settle, it would be wise to hire a tax professional prior to doing any other method.
3. If you owe over $10K, it is imperative that you work with a tax professional. There are three types of tax professionals, CPA, Tax Attorney, and an enrolled agent. All of these tax experts do similar work, but some may be better for different types of situations. When hiring a tax professional you should always consult with more than one. The majority of tax relief companies will offer a free, no obligation consultation. You will receive your options, likely outcome and and estimated price for the service.
   

When it comes to dealing with IRS back taxes, you will want to resolve them as quickly as possible. The IRS has the harshest collection methods for any collection agency in the US and they can easily ruin anyone’s financial situation. The good news is that they will give you lots of notice and opportunities to settle and they are willing to work with you. Ignoring the IRS can be a very bad mistake, so resolve back taxes as soon as you can.