Ways To Handle A Huge IRS Back Tax Bill
- June 6, 2019
- Posted by: asal
- Category: Tax Relief
Get Rid Of Huge Tax Debt , We all know that the IRS is one of the most frightening creditors out there. As a government agency, the IRS has the power to get their money out of taxpayers by any means necessary. The IRS can employ a variety of tactics to collect back taxes you owe. This government agency can garnish your paycheck, seize your property, and mess up your credit. If you owe more money on your federal taxes than you can afford, you need a tax resolution option. Some ways exist to reduce your tax bill. Consulting a tax resolution firm can help you decide which tax relief option is best for you. Below are some ways to reduce your tax bill to a manageable amount. Alternatively, at least here are some ways to get you more time to pay your back taxes.
Proactively Lower Your Back Tax Bill
If your tax bill is from a tax return you’re currently filing; you have options to reduce the bill. However, it may need some last-minute tax planning on your part. Therefore, before attempting to reduce a tax bill, consult a tax relief specialist. Many obscure deductions and credits within the tax code could save you money. Who knows the tax code better than anyone? Tax attorneys. Your best bet in this situation is to hire a tax relief professional. A CPA, enrolled agent, or tax attorney can be helpful in a case where tax code could benefit you. The odds are good that a tax resolution professional can get you extra tax breaks on your tax return. Plus, if you still owe more than you can pay, the tax relief expert can represent you before the IRS. A tax relief expert can also help you negotiate a deal with the IRS.
Lower Back Taxes With The IRA Contribution Deduction
One deduction you can attempt to claim to lower your bill is the IRA Contribution Deduction. Some tax breaks are limited to the tax year in question, but not this one. You can take the deduction for IRA contributions you made right up to the filing date in the following year. If you’re preparing your 2017 taxes, you can make IRA deductions up until the filing date of the current year. However, there are limits to this deduction. You can’t exceed the annual contribution limit for IRAs. Also, if you have access to a 401K or other retirement account, you might not be able to deduct IRA contributions. Consult a tax expert before you decide to claim this deduction.
Request an Offer in Compromise
The IRS offers the Offer in Compromise program for taxpayers who can’t afford to pay their taxes. If you are thinking of applying for an Offer in Compromise, consult a tax relief specialist. In some cases, you can reduce your bill to a much lesser amount. Platinum Tax Defenders got their client’s back tax bill reduced from over $140,000 to $100 through an OIC deal. You may qualify for an OIC if you prove you don’t have the financial means to pay back taxes. Taxpayers may request an OIC on new tax debt or back tax debt. If you decide to pursue an Offer in Compromise, consult a tax relief expert. There is much paperwork you must fill out when applying for an Offer in Compromise. Not everyone gets approved for an OIC. Working with a tax relief expert will help you reach the best outcome.
Set Up An Installment Agreement
Another way to pay back a considerable tax bill is by negotiating an Installment Agreement. When you negotiate an Installment Agreement, you tell the IRS how much you think you can pay. Then, based on your financial situation, they determine if they will approve that monthly payment or not. When attempting to negotiate an Installment Agreement, consult a tax relief professional. A tax attorney can work with you to make sure the monthly payment you agree to is one you can afford. The IRS will charge interest as you pay off your back taxes. Also, you may receive penalty charges on your back tax bill as well. For that reason, paying off as much as you can upfront will make your overall tax bill less costly. If you can pay off your taxes within 120 days, the IRS won’t charge you fees. Longer-term payments cost a variable set-up fee.
Don’t Panic Over A High Back Tax Bill
A large back tax bill isn’t good news for any taxpayer. However, there’s also no reason to panic over a huge tax bill because there are options. When you owe back taxes, you don’t want to ignore the bill. If you ignore notices from the IRS, they will ultimately be at your door asking for your money. When you don’t pay back taxes, the IRS can confiscate cash or property. Once you explore your options with a tax relief professional, you’ll find you don’t owe as much as you thought.
Get Rid Of Large Back Tax Bills By Calling Platinum Tax Defenders Today!
Hiring a tax relief specialist can get you a better deal when attempting to pay off back taxes. A tax relief specialist can also save you a lot of hassle and consequences when you owe back taxes. A tax attorney can help you determine which repayment method is right for you. The tax resolution specialist can also negotiate with the IRS on your behalf and submit the necessary paperwork. Owing back tax debt can leave you in bad financial shape. The IRS only wants to get what money you owe them in back taxes. Often, they are willing to help you settle back taxes, but you have to know how to try. That’s where a tax relief services company can come in handy. When you hire a tax resolution professional, there are other methods you can use to avoid expensive back tax debt. Call Platinum Tax Defenders for a free consultation today.