I Can't Pay My Back Taxes: 3 Steps To Resolve Tax Debt For Good
Taxes are an inevitable expense that take up a significant portion of everyone’s paycheck. However, it’s possible to get behind on paying taxes and back taxes start accumulating. If you can’t pay your back taxes, don’t worry!
In America, the IRS Fresh Start program was started to help those stuck in this vicious cycle.
What Are Back Taxes?
Simply put, back taxes are unpaid taxes owed to the government. Like all debt, it accumulates interest and penalties.
Since back taxes are often in the thousands, the interest compounds rapidly. This is why many Americans get stuck in a pattern of debt.
Why Do Some Americans Owe Back Taxes?
There are many reasons why Americans could owe back taxes. Family emergencies and natural disasters are just a few instances on the list where taxpayers can fall behind on their taxes.
If you’re curious about this topic, here’s a comprehensive article on why so many Americans are in debt to the IRS.
Though a scary situation to be in, the process to resolve back taxes is relatively straightforward.
3 Steps To Resolve Your Back Taxes
1. Understand Your Options
The Fresh Start program offers 3 main programs: offer in compromise (OIC), currently non-collectible (CNC), and installment agreement (IA).
The most desirable program in the OIC, which is when the tax debt is settled for less than the taxpayer owed.
2. Pick The Best Option For Your Situation
It goes without saying that each IRS program suits different needs. For instance, if you owe back taxes but can reasonably repay them, then you’ll most likely qualify for an installment agreement. On the other hand, if you calculate that there’s no possible way you could be reasonably able to pay back taxes, you may qualify for an OIC.
Each program has its own qualifications. For more information about the Fresh Start program, check out this article.
If you’re unsure which program best suits your needs, then check out our free tax consultation. Our team will take a look at your finances and recommend the best Fresh Start program that suits your needs.
3. Follow Through With The Plan
If you’re eliminating back taxes on your own, it’s vital to keep all of your documents in order and ensure you meet all qualifications before you apply for a program. Additionally, tax laws are constantly changing, so make sure to dedicate a lot of time to research.
When working with a tax relief company, we do the heavy lifting for you. We negotiate with the IRS for the best possible resolution. We understand that you’re busy and don’t have the time to sift through complex tax codes.
The Takeaway
Check out TaxRise’s free tax consultation to find out where you stand financially. From this quick call, you’ll be able to determine if you qualify for our services and which tax relief program will work best for your unique situation.
TaxRise has helped thousands of taxpayers just like you resolve their tax issues and erase their tax liability. Now it’s your turn.
