| Finding the appropriate method or professional help is | | | | settlements available from the IRS, but they are much |
| important when it comes to resolving back taxes. | | | | more difficult to obtain and it is highly suggested that |
| Back taxes should be resolved as quickly as possible | | | | you use a tax professional when trying to do those |
| to prevent any future penalties, interest, tax liens and | | | | kinds of filings. If you owe more than $10,000 or you still |
| tax levies. As more time goes on, IRS actions become | | | | cannot afford to make the payments with an |
| harsher with each passing week. Luckily, today there | | | | installment agreement then move on to number 3. |
| are many options out there to resolve your tax debts, | | | | 3. When you over $10,000 in tax debt, it is highly |
| even for those who have no means of paying at all. | | | | advisable that you hire a tax professional to help with |
| Depending on your unique financial situation and tax | | | | your tax problem. There are three types of tax |
| problem will determine what method is best for you. | | | | professionals, CPA, Tax Attorney, and an enrolled |
| Below are three steps you should take when you | | | | agent. All of these professionals do similar work, but |
| owe back taxes. | | | | some may be better for different types of situations. |
| 1. Check your return that you filed and make sure you | | | | When hiring a tax professional you should always talk |
| didn't make any mistakes and miss any deductions. If | | | | to more than one. The majority of companies will offer |
| you did make a mistake and missed a large deduction | | | | a free consultation. They will give you your likely |
| you can submit an amended tax return and then | | | | outcome and a price estimate for their work. |
| receive your new tax amount owed. If you don't have | | | | When it comes to dealing with IRS back taxes, you will |
| any missed deductions or you did have missed | | | | want to resolve them as quickly as possible. Everyone |
| deductions and you still cannot pay the taxes owed | | | | has heard the horror stories of people losing homes, |
| move on to number two. | | | | losing assets, getting wages garnished etc. The IRS |
| 2. See if you can settle the tax debt on your own. | | | | has more powerful collection mechanisms than any |
| Typically it is fairly easy to setup an arrangement with | | | | other collection agency in the United States. The good |
| the IRS if you owe less than $10,000. The agreement | | | | news is that they do give you fair notice and they are |
| the IRS will want you to set up is an installment | | | | willing to work with you. Ignoring the IRS can be a very |
| agreement. With this type of agreement you pay back | | | | bad mistake, so resolve back taxes as soon as you |
| the taxes owed over a specified period in the form of | | | | can. |
| monthly payments. There are other forms of | | | | |