Are your back taxes piling up and making you sick? Have you tried to reduce them? Your answer must be “yes” however, the ways you employed were they legal? If you are not sure, IRS’ system will raise a red flag and you might receive a notice for audit. If you don’t want to face such issues but still want to reduce the amount of your back taxes, read on…
There are several ways you can minimize your back taxes. IRS has provided several tax reliefprograms that would help you in reducing back taxes that too without coming under the spotlight of IRS’ systems. One of the most common ways to reduce back taxes is Offer in Compromise (OIC). This would help you in a situation where you owe to IRS more than you can actually afford to pay. If the results of your negotiations with the IRS go in your favor, you can get of the back taxes by paying lump sum amount as full and final payment. In case, you are lucky enough to get qualified for Offer in Compromise, you would be saving thousand of dollars that might be paying in taxes, interest and penalties.
If you owe money to IRS, they will intimate you by sending correspondences. You should not ignore them. Don’t run from IRS if you were late in filing taxes. Delinquent tax returns cannot be settled until to file them legally. Therefore, you should not ignore correspondences from theirs it might lead to worst consequences such as wage garnishments, levy and seizure of property and other valuable assets. In case, you get trapped in the situation of wage garnishment, and want paycheck of full amount you can bargain for the release of levy. This is the time when you should hire an experienced and qualified tax attorney. He/she will negotiate with the IRS and before that prepare your case to represent in front of the tax authority.
IRS has also introduced several payment plans to minimize the back taxes. These payment plants are quite similar to as that of credit card settlements. You can pay off all of your back taxes in installments instead of paying them in one go. Again, if you have skills to negotiate with the IRS attorney you can handle this case all by yourself else look out for CPA or tax attorney. You can also use Collection Appeals to file petition against IRS levy, seizure, lien and denial of an installment agreement. With collection appeal, you get an opportunity to explain, how situation could be solved without IRS levy or seizure.