Monday, August 10, 2015

Settling Back Taxes

It is no news to anyone that the government is very particular about taxes. Getting in trouble with the government, specifically the Internal Revenue Service (IRS), due to taxes, is a huge concern because of its ramifications to a person’s life. One way you can have problems with the IRS is back taxes.

Taxes that haven’t been paid in the year they were due are called back taxes, which may be at the local, state, or federal level. If you have back taxes, you’d want to resolve it immediately as they regularly accrue interests and penalties. If you fail to settle the back taxes, you may face severe consequences, such as property seizure or even jail time.

With the rate at which back tax interests and penalties accumulate, you may end up owing a really large amount that you have no means of paying. However, that doesn’t mean the end of the line for you. You can settle your back taxes in many ways other than a single payment of the whole sum that you owe.

One example is the Offer in Compromise, which is an arrangement that allows you to pay less than the full amount owed in order to settle the tax debt. If you opt to pay under Offer in Compromise or any other settlement options, it’s advisable to get a tax attorney to represent you.

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