Back Taxes Owed
Back Taxes Owed? – There Are Options
You have filed your returns but didn’t have the money to pay what was owed. You may think, “Oh well—I will catch up next year.” Before you know it you find yourself several years in arrears and suddenly there is a notice from the IRS, stating that you owe three or four times the original amount. IRS tax debt is certainly stressful and it’s truly amazing how fast tax penalties and interest add up.
Now you have a choice, you can write a big fat check and pay the full amount, including interest and penalties. Or you can just keep ignoring them while the penalties and interest keep piling up.
At Tax Samaritan, We Rescue Troubled Taxpayers
Luckily, we offer several options if you have back taxes owed. To start with, we recommend a complete review of your returns to make sure that your returns were filed accurately and completely. It is very common to find errors and omissions during a return review that can help you ensure that you pay the lowest tax liability legally possible. It is very easy to miss out on a deduction or credit simply because you or your previous preparer didn’t ask the proper questions or were unfamiliar with areas of the tax code that may be applicable to your situation.
If you have received an IRS notice that there are back taxes owed, it is important to not automatically assume that the information is correct. The information on the notice is limited to only information reported to the IRS (such as wages from your W-2) and will not include information not reported to the IRS (such as qualification for dependent exemptions, credits, deductions, etc.).
Even if your tax liability is 100% correct, there are many options available to get caught up with your tax debt and we may even be able to assist in reducing your penalties on any valid tax liability. We don’t feel it is fair or truthful to give you the impression that your tax debt can be settled for pennies on the dollar, as the reality is that that happens in very limited situations.