Issue of back taxes can occur in anyone’s life. Most recently, the recession has made large number of taxpayers defaulters as they were not able to pay taxes in time. Hence, there are thousands of taxpayers who owe money to the IRS and they are looking for alternatives that could allow them to get some IRS debt relief. However, there are few things that go in favor of taxpayers however, only few people know about them and most of these people belong to IRS. So, read on to know about these secrets.
First thing that you should know in order to reduce your penalties and back taxes is the information of your rights as a taxpayer. While an audit, if you don’t know about taxpayer’s right, you’d not be able to challenge the decisions made by the IRS agents. You can get in touch with experienced and qualified tax attorney to get information on taxpayer’s rights. In case you’ve filed your tax returns from last seven years, you can start paying now. It allows you reduce your back taxes. It’s obvious that you’d not become “Tax Free” in one day, but you can surely improve your penalty and back taxes situation. If you can pay the return of several years in one go, you can nail down a better deal. You should hire a certified tax professional so you get the best deal by reducing both penalties and back taxes.
Back taxes can lead to audits which is one of the scariest things that can ever happen. If you should pay all your taxes in time so that the situation of audit can never happen. However, if you cannot pay in full, pay whatever you can so that non payment penalties can be avoided. Audits can happen for months. Once audit reach in its 28th month, IRS agent will approach you to file form 872. This form allows IRS to continue with the audit. However, according to the experts and tax attorneys, you should not file the form before finalizing back taxes and penalties deal. Negotiating for a deal is essential because one your audit reach in its 37th month, means after three years, IRS penalties cannot be removed.
You can reduce IRS penalties and back to zero as well. Yes, it is possible! If you think your genuine reason for not paying taxes would work, you might find yourself in mess as IRS agents know how to deal with these reasons. Therefore, you should hire a qualified and experienced tax professional who can deal with IRS. Tax professional will have through knowledge of how IRS works hence; he/she will be able to challenge the decisions made by IRS and you’d get waiver of penalties and back taxes accordingly.
IRS would finalize a deal with you, if you have genuine reason for not paying taxes, complete documents etc. IRS will also consider the delinquency i.e., for how many years you’ve not filed your return. If IRS finds no flaws in your documents or reason, deal will be done.