Back Taxes
Back Taxes
Back taxes are basically the taxes you owe to the IRS that were partially or wholly unpaid the year they were due. In general, if you owe taxes, the IRS will send you a notice mentioning the amount you owe, the due date, and what consequences you will face for not paying. Apart from that, this type of tax debt regularly accrues fines and penalties, and in some serious instances, you might even face some serious legal consequences when you owe back tax. So, if you are in trouble or wish to have someone to help you file your tax forms, our tax professionals at Capital Tax Relief can help you make the right choice and help you get deductions from the IRS.
What to do when you owe back taxes to the IRS?
If you owe back tax to the IRS, it is suggested that you must pay off your taxes completely as soon as possible to prevent interest rates and penalties. However, if you are not in the state to completely repay your taxes, then you can choose back tax relief options. Under this initiative, you get a number of options to repay their taxes. However, you are required to prove your financial hardship because, depending on that, you can qualify for the relief program and temporarily halt penalties and settle your tax debt. Some main programs covered under IRS help back taxes include Offer In Compromise (OIC), Installment Agreement, Currently Non-Collectible, and Penalty Abatement.
FAQ
Looking for some quick answers regarding Back Taxes? Go through some of our FAQs.
How do you end up owing back taxes to the IRS?
One of the main reasons taxpayers owe back taxes to the IRS is that they paid fewer taxes during the year than they owed for their income. Also, if there is a recent change in taxpayers’ situation, like the beginning of a new job, divorce, marriage, and more, that can affect the filing status, which deduction to report, and what forms to sign and complete. If you seek professional assistance in this situation and need help navigating through this problem, then you can contact Capital Tax Relief tax professionals and get the help you need.
What are the consequences of the back taxes?
If you fail to address and resolve the back tax issue, it could have various consequences that will impact your financial well-being and legal standing. Some potential consequences of back taxes include penalties, seizure of assets, tax liens, and legal action. However, if you work with a Capital Tax Relief tax professional, you can easily navigate through this tough situation and get the required back taxes to help pay off your taxes and get back on track with your tax payments.
Can back taxes be reduced?
Yes, back taxes can be reduced under the back tax relief initiative only if one qualifies to prove their financial hardship to the IRS. If one qualifies, the following options are available to the taxpayer, Installment Agreements, Offer In Compromise (OIC), Penalty Abatement, and more. Further, to ensure that one is choosing the right relief option as per their situation, it is recommended that one must consult the tax professional at Capital Tax Relief. Experienced professionals offer the right guidance to pick the most suitable relief option.
How Capital Tax Relief can help you with back taxes?
If you owe back taxes to the IRS and need assistance with the relief options, then consider contacting the tax professional at Capital Tax Relief. The tax professionals can guide you through the complete process and help you head towards financial stability. For additional tax relief options and information, you can always browse through the site and blog section.
