IRS Back Taxes Help
You could find yourself in the position of owing back taxes to the Internal Revenue Service (IRS) for a variety of reasons. Some of the most common ones include:
- If you are self-employed, and you fail to make estimated quarterly income tax payments or pay too little
- Failing to file a tax return for any of the past several years
- Taking an exemption you were not entitled to have or making a mathematical error on your tax return, thereby lessening the amount your actually owed or increasing your refund
- If you are a small business owner, miscalculating your payroll tax deposits or failing to make timely payments
In many cases, the above situations happen due to honest mistakes or ignorance of the law rather than a deliberate attempt to avoid paying the IRS. However, the IRS does not consider these valid reasons to fall behind in payment. It will typically notify you within 60 days of the April 15 filing deadline via a CP Letter stating that you owe back taxes. Continue reading to learn how our prior experience as former IRS agents can help you.
How to Determine What You Owe to the IRS
Although the IRS will inform you that you have a delinquent tax obligation, it will not necessarily tell you how much you owe. It is up to you to contact the IRS to request a Record of Account. You can get this form from a local IRS office or by contacting its toll-free telephone number and making a request.
If you choose the latter option, keep in mind that it will take approximately two weeks for you to receive the documents by mail. Before you call or visit a local branch office, you need to complete Form 4506-T, Request for Transcript of Tax Return. This is different from Form 4506, which requests a copy of entire tax returns from previous years.
How to Approach Settling Your Back Taxes
The most important thing you can do if you owe back taxes to the IRS is to be proactive. Although your first inclination may be to ignore the problem and hope that it will go away, we can assure you that this will only make things worse. Securing the services of an Enrolled Agent at Yarborough Professional IRS Debt Solutions demonstrates to the IRS that you have taken the initiative to resolve the problem before it has to resort to aggressive collection efforts. And even if they have begun aggressive collection efforts, it shows you are serious about resolving the issue. We can help you avoid further IRS issues by negotiating with the IRS to reach a settlement and then paying the debt in your name, and we have the most success because many of our agents are former federal agents with insider knowledge of the IRS.
Why Working with an Enrolled Agent to Settle Your Tax Debt is a Smart Move
Getting an unexpected letter from the IRS is unpleasant, causing most people to panic as a result. This can lead them to make decisions that are not in their own best interest, such as ignoring the notification letter or trying to handle the situation on their own. The reality is that the IRS does not particularly care how the situation happened or that you may not have the funds available to pay the debt. It wants to recover what you owe as quickly as possible and may require you to make payments that are more than you can realistically afford.
Many of the Enrolled Agents at Yarborough gained firsthand experience working for the IRS before they decided to switch gears and represent the taxpayer. This unique firsthand experience is not something you will likely find when working with a Certified Public Accountant (CPA) or tax attorney. As a former revenue officer, we are well-positioned to represent you to the IRS and negotiate the best possible settlement or repayment plan for your unique circumstances. We encourage you to contact our office to request a review of your back taxes. We offer free consultations, so connect with us today.