File Your Back Tax Returns

Unpaid taxes can become problematic. The IRS warns taxpayers to pay their unfiled taxes this tax season: "Taxpayers who continue to not file a required return and fail to respond to IRS requests for a return may be considered for a variety of enforcement actions. Continued non-compliance by flagrant or repeat nonfilers could result in additional penalties and/or criminal prosecution." If you have been notified of taxes owed and you do not pay, the IRS may act aggressively.

Resolving Tax Debt is Easy if Paying is Not
The IRS is understaffed and uses its limited resources to focus on tax returns during the tax season. However, after the tax filing season is over, they will review cases of non-payment. Therefore, resolving all past taxes needs to be a priority during the tax filing season. If you are unable to pay your back taxes in full, the IRS has various programs to assist in resolving tax debts.

Fight the IRS
The IRS will try to recover the full tax debt amount with interest if you do not negotiate an arrangement. You can submit an application for a reduction in penalties, or extension of time to pay the tax debt if you qualify. To do this, you will need knowledge of tax laws, IRS rules, and experience in negotiating with the IRS.

IRS' Plans are Flexible
The IRS will not tell you the specifications of its debt payment plans. For example, the time period in between payments under an Installment Agreement can be increased or decreased depending on the amount of the tax debt and the financial ability of the taxpayer. The amount to be paid in monthly installments can also be negotiated. Exploring all the options available and choosing the ones that are most beneficial for taxpayers is the job of a tax professional. Getting the IRS to agree to those terms is a battle that is won through expertise and experience.

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