| If you owe the IRS back taxes you are not in so much | | | | this is affordable to you. This depends on how much |
| trouble that the law is going to come calling in the near | | | | you owe in back taxes, and how much money you |
| future. After all, there are a lot of Americans who owe | | | | have in your possession. If you do not owe a lot you |
| back taxes. Does this mean you should strive to | | | | can pay all at once as a way of avoiding interest and |
| become one of them? Of course not. You never | | | | further penalties. |
| want to owe back taxes, but if you do you can dig | | | | I don’t have enough money to pay a lump sum! |
| your way out of this situation and onto better things if | | | | This situation calls for an installment agreement. This |
| you know what steps are most important. | | | | agreement allows you to pay the IRS back taxes in |
| When you owe the IRS back taxes you need to have | | | | monthly payments instead of a lump sum. The |
| an idea of the total amount. Remember to add up your | | | | downside of paying a little bit each month is that the |
| total from every year. Many people find themselves | | | | IRS will charge you interest. But if this is the only way |
| owing back taxes from several years because they | | | | for you to pay your back taxes it is something you |
| did not file annually, as they were supposed to. It is | | | | have to deal with for the present time. |
| important to know the total liability that you are facing | | | | If you owe the IRS back taxes you need to pay them |
| as opposed to only one years worth of problems. | | | | or setup an installment agreement without further |
| Now that you know your total liability you can decide | | | | delay. They will get their money soon enough, and you |
| how you are going to pay the IRS. Most tax | | | | want to cooperate along the way to ensure that your |
| professionals will suggest that you pay a lump sum if | | | | situation does not spiral out of control. |