Pay Back Taxes

Do You Owe the IRS Unpaid Back Taxes?

The IRS is a huge government collection agency with one main purpose—to collect and make you pay back taxes you owe. Unfortunately when unpaid back taxes begin to pile up many taxpayers despair and give up. Some even stop filing tax returns all together. Don’t do that.

The IRS wants to collect the full amount of back taxes owed, BUT they also recognize that some debts are simply uncollectable and they are therefore frequently willing to will work out tax penalty abatements, IRS installment agreements and offer in compromise tax settlements.

Obviously the earlier you file to pay back taxes better. Many taxpayers who owe delinquent back taxes unwittingly make the problem worse by ignoring it and pretending it does not exist. It is far better to file tax returns to pay back taxes even if you cannot actually pay the IRS right now. The IRS, as a general matter of policy, will not criminally prosecute you so long as you do file your tax returns. And, while it may be true that some non filers who have not filed to pay back taxes for many years have not yet been prosecuted, their day of reckoning is coming.

Long-term and continued failure to file, can trigger criminal prosecution—resulting in imprisonment and additional fines and penalties. And, another risk of not filing to pay back taxes is that the IRS may actually file for you. This is known as a substitute return. If this happens do you think the IRS will apply your eligible tax deductions and exemptions? Think again; they won’t. And your penalties and interest will accrue based on the IRS’s assessment of what they say you owe.

Once the IRS files a substitute tax return on your behalf, they may unleash a host of collection methods available to them such as:

·         Phone Calls

·         Collection Letters

·         Tax Audits

·         Tax Levys

·         Tax Liens

·         Wage Garnishments

·         …and more

Much of these aggressive IRS collection methods can be avoided by seeking professional help from an IRS tax attorney or other competent tax practitioner. For example, even though you may owe substantial unpaid back taxes, we may be able to work out an IRS payment plan, offer in compromise or other form of tax relief to pay back taxes in a way that may reduce or eliminate your delinquent back tax altogether.

Speaking with a tax professionals will give you the opportunity to assess the problem and file to pay back taxes to avoid substitute returns and perhaps criminal prosecution. It is not uncommon for non filers to later find out that the IRS actually owes them a refund. But one thing is for certain, the IRS is not going to go away. Eventually they will catch up you so it is foolish to pretend the problem doesn’t exist.

The longer you put off dealing with delinquent taxes the worse the problem will be.

Want to work out a way to pay back taxes? – Get professional help today.