If you owe back taxes, it can feel like a black cloud over your head and leave you feeling anxious about what the Internal Revenue Service could do. You likely know that the interest is accumulating at a fast rate, and that can make paying your back taxes even more difficult. You are not alone in this situation, as roughly 20% of Americans struggle to pay their taxes, with many having tax burdens in the thousands of dollars. Here is what you should do if you owe back taxes so you can get back on track.
First, start by consulting with a tax accountant. They can go over your tax return if you have already filed or help you get your return filed if you haven’t while making sure you take every possible deduction and tax credit that you are eligible for. You may owe less in back taxes than you think, and that can be remedied with an amended tax return if you have already filed. If you haven’t filed, they will help you do so right away so that the failure to file penalty can cease accumulating.
Depending on the time of year, an extension can be filed to give you more time to file the return. Keep in mind that this is not an extension on paying your taxes, only on filing. As for paying your back taxes, a tax accountant can also help you with setting up an installment plan or seeking penalty interest relief. The important thing is to get started with paying in your back taxes as soon as possible, while doing your best to stay current with new tax year filing and tax payments, as well.
If you need help dealing with back taxes, give us a call at Proctor & Assocs. We can assist you with a tax resolution, amended tax return, late tax filing, and other services that will help you put your back taxes behind you. In addition, we can get you on a plan that will help you keep up with your taxes going forward so you never have the weight of back taxes on your back again.