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