What If My Tax Preparer Makes A Mistake?
- July 11, 2019
- Posted by: asal
- Category: Tax Resolution
Filing your taxes isn’t always as easy as it sounds. Tax season can leave you with the obligation to pay back taxes to the IRS that you can’t afford. What do you do if you can’t afford to pay back taxes? Don’t ignore what you owe, and don’t deplete your bank account, either. It’s possible to settle your back taxes with the IRS through other means. Read on for options that allow you to file your taxes even if you can’t afford the balance due. If you owe more than $10,000 in back taxes, it’s a good idea to consult a tax relief professional. The IRS understands that, in today’s economy, many taxpayers are struggling to pay back taxes. For that reason, the IRS offers tax relief options for U.S. taxpayers.
File Your Taxes, Even If You Can’t Pay The Full Balance
One of the best things you can do when you owe back taxes is to pay what you can. Providing the IRS with an upfront payment on your tax bill shows them you intend to settle back taxes. Even if you can’t pay in full on tax day, the IRS knows you are trying. Paying what you’re able to also allows you to avoid a penalty for filing your taxes after the deadline. Additionally, paying even a little toward your total will enable you to avoid a late payment penalty. Paying a small amount of back taxes can reduce your interest charges on what you owe the IRS.
Pay Toward Back Taxes With A Credit Card Or Loan
If you don’t have the cash to pay back taxes, you can use a credit card. It’s possible that the interest rate charged by your credit card would be lower than the IRS’ charges. Additionally, you may want to consider taking out a loan to pay back taxes. Taxpayers have taken out personal, equity, or family loans in the past to pay the IRS in full.
Apply for An Installment Agreement
If you cannot afford to pay back taxes, the IRS may consider an Installment Agreement. An Installment Agreement is a plan you make with the IRS to pay your back taxes in affordable monthly amounts. The IRS bases what you will owe them each month on how much money you make. When attempting to negotiate an Installment Agreement, it’s beneficial to work with a tax resolution professional. A tax resolution expert understands how Installment Agreements work better than anyone. If you work with a tax resolution expert, you will likely get a much better result. Once you receive approval for your Installment Agreement, you make monthly payments until the debt is gone. It’s important to note that the IRS will still charge interest when you’re paying back via an Installment Agreement. Additionally, you will have to pay a user fee for an Installment Agreement. However, while you’re paying back taxes, the IRS cannot take out any collection activities on your account.
Request an Extension to Pay Back Taxes
The IRS may grant you an extension to pay back taxes. However, the IRS’ decision to give you an extension will depend on your circumstances. Many of the extensions the IRS offers are under the Fresh Start Initiative program. If you qualify for the Fresh Start program, you could get up to 120 additional days to pay back taxes. When considering applying for the Fresh Start initiative, consult a tax relief professional. The tax resolution experts at Platinum Tax Defenders will know how to use the Fresh Start program. Working with a tax relief specialist will guarantee you the best possible outcome for settling back taxes.
Claim Financial Hardship To Pay Back Taxes
The IRS often wants to work to help taxpayers having financial troubles. If you are experiencing financial hardships, ask the IRS to delay back tax payments. The following are circumstances which the IRS may consider:
– Inability to pay everyday expenses due to lack of money
– Recently terminated from your job, or you’re unemployed
– A sickness that makes you unable to work
– Prolonged disability
If the IRs grants you an extension due to financial hardship, you may still incur penalties and interest. Additionally, you could incur a tax levy against any assets you have if you fail to pay back taxes. Working with a tax relief professional will help you effectively ask for an extension to pay back taxes.
Negotiate with the IRS
Additionally, depending on your circumstances, the IRS may be willing to negotiate your tax bill. However, it’s never a smart move to negotiate with the IRS on your own. Working with a tax resolution professional is the best way to negotiate with the IRS. At Platinum Tax Defenders, we negotiate with the IRS, so you don’t have to. The IRS rather receive some form of payment than none at all. It’s possible to negotiate with the IRS to pay a lump sum on a lower amount. Your tax resolution professional can negotiate an Offer in Compromise on your behalf. The OIC program helps taxpayers who have limited financial means yet can pay a reasonable amount to settle back taxes.
Get Help From A Tax Relief Professional
Hiring a tax relief specialist can get you a better deal when attempting to pay off 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.