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 you 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. 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.

Common Ways To Resolve 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 how 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, also called an IRS Installment Agreement, 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.


Unpaid Taxes Help & Relevant Articles

What to Do and Expect With Unpaid Back Taxes
Describes actions the IRS will take for Unpaid Back Taxes.

Failure to Pay Tax Penalty
The penalty for not paying taxes or underpaying taxes ranges from 1/4% to 1% . Understand what rate you will be charged and if you can remove the penalties.

IRS Underpayment Penalty and Interest Rates
Understand what IRS interest rates are for failing to pay or pay in full and what you can do to lessen penalties.

Delaying IRS Collections
If you need more time to pay back taxes, consider delaying the IRS. Some information the IRS would never tell you, but a very easy method to use to gain a few months of time to pay.

Unfiled Tax Returns

Not filing a tax return is far worst than filing a tax return and not paying. It is best to file before the IRS contacts you.

Protecting your Assets for Seizure

How to protect your assets from the IRS if you know they are planning on imposing a levy on your assets

IRS Payment Plans

Describes various payment plans available to pay back taxes if you cannot pay in full. However, you need to file your back taxes first before looking at any payment plan.