If you owe back taxes to the IRS, you may feel as though you are trapped in an endless cycle of debt, particularly when the next tax deadline arrives, and you still haven't resolved your previous debt. If you owe the IRS and you don't file your taxes, your tax return is automatically considered delinquent, regardless of f the extenuating circumstances that caused the delinquency. Fortunately, it is never too late to take the necessary steps to get rid of back taxes and get your finances back on track.
For every year that your tax return is considered delinquent by the IRS, you can incur a fine of $10,000 as well as possible jail time. If these penalties sound harsh and scary remember, taking action, even if you can't pay your tax debt, is the best thing to do. Contact the IRS yourself or, if you are inexperienced when it comes to tax laws and your rights as a tax payer, hire a tax professional to represent you and speak to the IRS on your behalf.
If you owe a large amount of money and cannot pay any of it, you may be able to qualify for current non-collectible status, which exempts you from paying your tax debt for a specified period of time. If criminal charges are pending against you and you can submit your tax returns to the IRS before the formal filing of said criminal charges, you may qualify for tax amnesty. The tax professional that you hire will be able to explain your options to you, and help you find the one that is best for your situation.
No one ever wants or means to become a delinquent tax payer. Sometimes life circumstances such as job loss, divorce, or serious illness make it difficult or impossible for people to file their taxes on time and pay them when they are due. Don't assume that the problem will go away on its own. The IRS will begin to contact you as soon as your tax return is found to be delinquent, so your best strategy is to have plan of action in place, whether that means working out a payment plan or settlement with the IRS directly, having your tax professional speak to the IRS, or repaying your debt in full.
The best back tax help strategy is to be proactive and upfront when dealing with the IRS. Acknowledge that you owe a debt, and indicate your willingness to pay it off in full, even if you are unable to do so immediately. Back taxes can seem overwhelming, but the longer you wait, the more your debt will grow.
Article Source: http://EzineArticles.com/2914850
For every year that your tax return is considered delinquent by the IRS, you can incur a fine of $10,000 as well as possible jail time. If these penalties sound harsh and scary remember, taking action, even if you can't pay your tax debt, is the best thing to do. Contact the IRS yourself or, if you are inexperienced when it comes to tax laws and your rights as a tax payer, hire a tax professional to represent you and speak to the IRS on your behalf.
If you owe a large amount of money and cannot pay any of it, you may be able to qualify for current non-collectible status, which exempts you from paying your tax debt for a specified period of time. If criminal charges are pending against you and you can submit your tax returns to the IRS before the formal filing of said criminal charges, you may qualify for tax amnesty. The tax professional that you hire will be able to explain your options to you, and help you find the one that is best for your situation.
No one ever wants or means to become a delinquent tax payer. Sometimes life circumstances such as job loss, divorce, or serious illness make it difficult or impossible for people to file their taxes on time and pay them when they are due. Don't assume that the problem will go away on its own. The IRS will begin to contact you as soon as your tax return is found to be delinquent, so your best strategy is to have plan of action in place, whether that means working out a payment plan or settlement with the IRS directly, having your tax professional speak to the IRS, or repaying your debt in full.
The best back tax help strategy is to be proactive and upfront when dealing with the IRS. Acknowledge that you owe a debt, and indicate your willingness to pay it off in full, even if you are unable to do so immediately. Back taxes can seem overwhelming, but the longer you wait, the more your debt will grow.
Article Source: http://EzineArticles.com/2914850
