Do Your Owe Back Taxes and Can’t Pay

Owe back taxes to irs

Do you owe back taxes to irs and don’t know what to do about it? Perhaps you can’t pay what you owe IRS so you are trying to ignore your tax problem. That may work in the short run, in the long run though, your tax problem will grow beyond belief. There are all kinds of penalties and interest that gets added on to back taxes that people owe the IRS. If you are thinking “what if i cant pay my taxes on time”, now is a good time to go see a enrolled tax agent or a CPA. They can help you settle current tax problems when you owe IRS money. on this year’s tax return.

Owing back taxes is another thing though. You may wait so long that you end up owing IRS back taxes to the tune of $10,000 or more. It is a good thing that tax settlement companies exist today to help people who owe back taxes. When you owe a huge amount of back taxes a tax resolution firm can submit an Offer in Compromise (OIC) for you. This is an offer to settle your tax debt for less than what you owe. If you truly can’t pay your tax debt in full the IRS is usually willing to negotiate and come to an agreement to settle for less.

When you owe back taxes a tax settlement company may also bet you a Penalty Abatement (PA). This is where the penalties may be rescinded if you can show a reasonable cause for falling behind and owing back taxes. If you are in a tough financial situation, a tax resolution company can ask for Currently non Collectible (CNC) status. This is a temporary resolution plan to keep the IRS from enforcing collections on a tax payer. Certain rules and guidelines apply for a CNC. Find out more by searching for help for people who owe back taxes online and by going to tax resolution websites today.

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