IRS and State back taxes can cause significant financial strain so if you are considering finding a way to pay them you are making a wise decision because each day that goes by will lead to more penalties and interest. In order to pay back taxes, you must first file tax returns from previous years, or the IRS will submit a "substitute return" for you which will is not good because it includes no deductions. It is best to work with a tax firm that can file your back taxes and represent you or negotiate on your behalf because the IRS and State tax codes are not simple.
Here are 5 Steps to follow in order to pay back taxes:
1) Collect all relevant documentation such as any deductions you want to claim, and you will need a W4 and/or 1099 as well as other tax documentation to file back taxes.
2) Call a back taxes help firm who can help you File these return(s) AND represent you or help you in negotiation and resolution process.
3) Work through a method to reduce them
a) Apply for Penalty Abatement (If you can prove why you did not file or pay - death in family, serious financial strain, sickness, financial strain) to get your penalties eliminated but their must be reasonable cause.
b) You could also apply for an Offer in Compromise, but the IRS will only accept the reduced settlement amount you propose if they feel they cannot collect the full amount of back taxes
4) Next your tax professional will help you find a method to pay them (IRS has to approve too)
a) If you can pay a lump sum whether you eliminated penalties or not,
b) Then you can apply for an installment agreement (60 days normally)
c) Or a partial payment installment agreement which allows you to pay in smaller increments.
5) Keep records and documents form your outcome!
If any delay is caused in the payment then the IRS may be forced to take other steps like taking your home, property and car. Remember, first you need to file, then you can apply for reductions, and then you must come to an agreement in your payment method. It is more complex then what is here, and that is why it is important to work with a Tax resolution firm that can File and Negotiate on your behalf.
If you are in search of a trusted firm that can help you pay back taxes make sure they can file back taxes and negotiate on your behalf
Article Source: http://EzineArticles.com/?expert=Manuel_Davis_Jr.
Here are 5 Steps to follow in order to pay back taxes:
1) Collect all relevant documentation such as any deductions you want to claim, and you will need a W4 and/or 1099 as well as other tax documentation to file back taxes.
2) Call a back taxes help firm who can help you File these return(s) AND represent you or help you in negotiation and resolution process.
3) Work through a method to reduce them
a) Apply for Penalty Abatement (If you can prove why you did not file or pay - death in family, serious financial strain, sickness, financial strain) to get your penalties eliminated but their must be reasonable cause.
b) You could also apply for an Offer in Compromise, but the IRS will only accept the reduced settlement amount you propose if they feel they cannot collect the full amount of back taxes
4) Next your tax professional will help you find a method to pay them (IRS has to approve too)
a) If you can pay a lump sum whether you eliminated penalties or not,
b) Then you can apply for an installment agreement (60 days normally)
c) Or a partial payment installment agreement which allows you to pay in smaller increments.
5) Keep records and documents form your outcome!
If any delay is caused in the payment then the IRS may be forced to take other steps like taking your home, property and car. Remember, first you need to file, then you can apply for reductions, and then you must come to an agreement in your payment method. It is more complex then what is here, and that is why it is important to work with a Tax resolution firm that can File and Negotiate on your behalf.
If you are in search of a trusted firm that can help you pay back taxes make sure they can file back taxes and negotiate on your behalf
Article Source: http://EzineArticles.com/?expert=Manuel_Davis_Jr.
