5 Tips For People Who Owe Money To The IRS
Owing the IRS back taxes can make you feel like you don’t have any options. But you do have your rights as a taxpayer, there is a law adopted by the IRS called the "Taxpayer Bill of Rights." Everyone has options, especially if you act quickly. Below are some tips for people who owe back taxes to the IRS.
1. Pay in Full if Possible
If you are able to do so at all, it is always in your best interest to pay the whole amount you owe in full. This is best because it will save you from having to pay hefty penalties and interest. After penalties and interest accrues, it can be even more difficult to convince the IRS to work with you.
2. Request Penalty Relief
As a taxpayer, you have the right to give the IRS more information to help back up your claim that you owe less in taxes than they are requesting. Also, you may offer information to suggest that you should be considered for penalty relief from paying the full amount due. Some reasons people qualify for this type of relief may be due to illnesses or military service.
When the IRS prepares a tax return for you, they will use your standard deductions, no credits, no dependency exemptions and "married filing separate" for married taxpayers. This will usually result in a more higher tax liability than it should be.
This forces non-filers to want to refile a corrected return in order to get themselves back in compliance with the IRS.
3. Set Up a Payment Schedule
You have the right to work with the IRS to set up a payment schedule. However, all penalties and interest that has accumulated will need to be paid as well as any that accrues while you are making payments. The IRS does not tolerate late payments very well once you have agreed to repayment terms with them. It is essential to make your payments on time or you might have to begin the process of negotiating all over again.
4. Innocent Spouse Relief
If you happen to owe the IRS taxes because of noncompliance of your spouse, you might be able to become eligible for "Innocent Spouse Relief." There are certain rules and requirements to be eligible. The ability to become eligible for this rule could be because of joint liability from some unreported income that your spouse failed to mention to you.
5. Hire a Tax Lawyer
This tip might be useful for those that owe huge sums to the IRS. As a taxpayer, you have a legal right to be represented by a competent legal professional. This means that for some the best option is to hire a qualified professional to help with your case. There are many professionals you can hire that have experience working with IRS issues. Mary King is one of those professionals. Use the form at the bottom of the page to sign up for a free meeting with Mary to find out what is the correct course of action for your situation.
Lastly, no strategy that you choose to use for working out a deal with the IRS for back taxes will help you if you owe any state taxes. State and federal tax laws are not the same and they each follow a different set of requirements and rules. Your state taxes will have to be addressed separately.
Need help solving your issue with back taxes? Attorney Mary King can help. She works directly with the IRS to find solutions to her clients’ tax problems. Use the below form to sign up for a free consultation and find out how Mary can help you!