3 Ways To Deal With Back Taxes

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Taxes are something which we all have to deal with. Be it about filing taxes or paying them, we have to make sure that we follow all the procedures in time. However, there are times when we are not able to comply with the timeline and end up facing Back taxes. Back taxes is the amount due when we are not able to pay our taxes on time. Although you can pay back overdue tax, you should be careful about a lot of things.

To help you deal with back tax, here is a list of some of the ways in which you can deal with back tax.

1. File your tax in time 

The first thing you should do is to avoid the accumulation of back taxes. This can be done in two ways. First is obviously to file and pay your taxes in time and the second is to file your taxes in time even if you have a shortage of money. This is because even if you have a shortage of money, you will be able to avoid the extra amount that is overdue when you fail to file your tax in time.

2. Request a payment plan 

The next thing can be done when you already have your Back taxes. In this situation, you can request the IRS for a payment plan in which you pay back your back taxes in installments over some time. However, this technique is only applicable when you can pay your back taxes in 120 more days and have an amount of less than $ 50,000 due which includes your penalties and interest.

3. Settle for less payment

One of the other things you can do is that you contact the IRS to seek lesser payment for the back taxes that are accumulated. You can enter into an OIC or an Offer in Compromise with the IRS. This means that the IRS will decide the amount which is lesser than your actual payable tax. You will be able to pay a lesser amount than required to the IRS.

If you wish to seek back tax forgiveness, you should seek the aid of professional tax attorneys. Browse through the web to know more.

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