When it comes to paying your taxes, there are a lot of options that you can choose from. Most taxpayers choose to set up a payment plan or pay off the whole of their taxes before the tax season ends in April. But there are times when you are not able to pay these taxes and they become overdo. Just like with other bills and debts that you may incur over the years, these can start to incur fees and interest, but now they are backed by the government so the penalties can include wage garnishment, withholding future tax refunds, and even levies against some of your personal property.
If you are dealing with back taxes that you just are not able to pay back at this time, it is best to come up with some kind of agreement to pay them off without getting penalized more than before. The professionals at Tax Problem Resolutions can help you come up with an offer in compromise so you can get that tax bill lowered and pay off your taxes on time.
What are Back Taxes?
An offer of compromise is an option that you can use if you are behind on your taxes. These back taxes could be causing a lot of issues with your financial life. You will not be able to get a tax refund until they are paid off, you may have liens and levies placed on your home, and wage garnishment is possible. This can make life difficult so it is important to pay off the back taxes as soon as possible.
There are times when you are not able to pay off the back taxes. You may have lost your job since the tax return season, become disabled, or had another life situation that has made it difficult to come up with the money that is needed to pay these back taxes. Regardless of the reason, these taxes need to be paid off or the consequences are going to haunt you for a long time to come. An offer of compromise is going to be able to help you out with getting the bill more manageable.
What is an Offer in Compromise?
An offer of compromise is a great way for you to get your back taxes paid off if you are not able to make the full payments or your life situation has changed. While not everyone is going to be able to get this kind of offer, those who have had significant changes in their life situation, such as unemployment in a down economy or a disability that makes it hard for them to make the money to pay this back, could get this offer.
If you want to work on an offer of compromise, the professionals at Tax Problem Resolutions will sit down with you and take a look at your tax bill, your income, and other important aspects of your financial life. This will help out with writing up the offer and can be used as evidence to determine how much the offer in compromise is going to be worth.
We will then help to submit this to the IRS. If they approve the offer of compromise, you will find that your tax bill is reduced. You will not have to come up with as much money and will be responsible for the new tax amount. You can then pay it all off at once to avoid future penalties and interest (if you are able to make this lump sum amount), or you can make a payment plan to get this lower amount taken care of. Either way, even after the offer of compromise is taken care of, it is still your responsibility to pay all those taxes off like agreed.
Other Options Available
In some cases, your offer of compromise may be rejected by the IRS. This means that your tax bill is going to still be the same as before. This does not mean you are out of options when it comes to paying them off. If there is any way that you can get the money and pay it all off, this is the best option for you to choose. This will reduce some of the penalties and fees that you are going to get if you prolong the tax payment.
Of course, for those who are dealing with back taxes, this is not always a viable option. If you are not able to pay this off in one big payment, it is best for you to set up a payment plan. This is going to still incur fees and interest penalties, but it is better than not paying the bill at all. The professionals at Tax Problem Resolutions will work with you to come up with the best payment plan possible to get those back taxes taken care of without causing any more problems than you are already dealing with.
Dealing with the IRS is no easy matter. You need to make sure you get the right professionals on your side right from the beginning. Linda Biller from Tax Problem Resolutions, Inc. in Longwood, FL is here to help with all your back taxes and tax litigation needs. Whether you need help with creating an offer in compromise or you have other tax issues, big or small, make sure to contact our professionals today.
