Unpaid Taxes - Resolving your Taxes Owed

Unpaid_Taxes_ResolutionIf you have unpaid taxes owed to the IRS, you can be sure that the IRS will eventually find out about it and will begin sending you notices and taking collection actions if nothing is done on your part. The IRS can sometimes be a slow working machine and may take several months or years to follow up with individuals about unpaid taxes. With the improvements of the IRS computers and records systems, it has become a very rare occurrence where someone's unpaid tax slips through the cracks. Even if an individual has unfiled returns, the IRS will find out about it by using their computerized matching system to match employer filing records with individual tax filings.

How to Resolve Unpaid Taxes

First thing you must do is find out how much you owe and how much you can afford to pay. To find out how much you owe, you can look at your last notice you received from the IRS and it will typically state the amount owed plus penalties and interest. If you have not received a notice and you did file your tax return and haven't paid, you can call the IRS and find out how much you owe.The number you can call is (800) 829-1040. If you have not filed your returns you will have to file back taxes with the IRS and determine how much you owe from them plus additional late penalties and interest.

Once you determine how much you owe to the IRS you will then have to find out the best way to resolve your unpaid taxes with the IRS. Depending upon your financial situation and your ability to pay will determine your best method of settling your tax debts. Working with an expert is a good decision, one that can file and help resolve or settle your back taxes. Just keep in mind, the IRS deals with literally hundreds of thousands of cases of unpaid taxes every year and they try to ensure there are ways to ensure everyone can pay and they have created many settlement methods.

Below are some common ways to resolve your unpaid taxes:

  • Hire a Tax Professional
    A tax professional is trained and extremely knowledgeable in IRS tax code. Their job is to save you money and to help your financial situation. Even though they do cost money, individuals typically end up better off if they use a tax professional than try to handle the situation on their own.

  • Pay Back Taxes
    There are many methods of payment available from the IRS and many states. Your financial situation should determine which way you can pay the taxes back. Once you file your back taxes and gather all required documentation, you can determine if you can afford a payment plan or if you should consider some other form of tax settlement. Follow these steps to get your taxes paid off.

  • Settle Taxes Owed
    If you cannot pay taxes owed, you may be able to qualify for another type of settlement with the IRS. This is a list ways a taxpayer can settle with the IRS. The IRS has created a method for each and every person of every financial situation to settle their tax debts, even if it means the IRS deciding to let you not pay your taxes in hopes your financial situation will improve so you can pay your taxes before the IRS statute of limitations expires.

 

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