Four Ways of Resolving Unpaid Taxes
If you have unpaid taxes owed to the IRS you should be looking for a resolution to this problem
. The longer you wait to resolve the problem the worse things are going to get. Although the IRS often times works very slowly, you can be sure of one thing: they are going to realize soon enough that you have unpaid taxes. At that point they will get in touch with you to start the collection process.
The first thing you must do in resolving unpaid taxes is to find out how much you owe. This will in turn give you an idea of how much of the total debt you can afford to pay. If you have enough money to pay the entire bill, you should do so as soon as possible. This will resolve your unpaid taxes and put the issue behind you.
There are several other things you can do to resolve unpaid taxes:
1. Hire a tax professional. Why take on this problem alone? If you hire a professional you do not have to worry about making any mistakes. One who is experienced and knowledgeable of the tax code can help you resolve your unpaid taxes in a short period of time. The reason why there are so many tax professionals is because it is a fact that taxes are complex and people do need professionals to help. A tax professional can most likely analyze your financial and tax situation fairly quickly and find you the best possible method to pay back your taxes or settle your taxes while keeping your financial well being in mind.
2. Just pay. As noted above, if you have the money you can pay your unpaid taxes to solve the problem. Even if you can't pay in full maybe you can come up with the money quickly to pay off your taxes. Some possible options to come up with extra cash to pay for your taxes could be sell some of your unwanted jewelery/gold, sell old items that may have some value on ebay, sell that extra car of yours that you haven't used in years, have a tag sale or possibly borrow from family and friends.
3. Pay your taxes back through an IRS payment plan. There are several payment plans available depending upon your financial situation. The most common form of payment plan is an installment agreement. With an installment agreement you will be allowed to pay back the taxes you owe in monthly increments. One thing to remember is that you will still be charged interest on the outstanding balance so the sooner you pay off the entire amount, the less in interest you will be paying. An installment agreement is a great alternative to putting on a credit card as the interest with an installment agreement is typically less than most credit cards. If you cannot afford the minimum payments required with an installment agreement it is a possibility that you may qualify for a partial payment installment agreement. With a partial payment installment agreement the monthly payments will be lower but you will need to provide detailed proof of your financial statements to the IRS in order for them to consider you for this.
4. If you feel you will not be able to pay off your taxes through any type of payment plan or if doing so would cause severe financial hardship then an offer in compromise can be an option for you. With an offer in compromise you can settle your taxes for less than the total amount. In order to do so you will be required to complete a very detailed and complicated tax filing that will detail out your current financial standing, future financial standing and the amount you are willing to offer the IRS to be considered back into good standing with them. It is a good idea to hire a tax professional when filing for an offer in compromise. Most offers are rejected because they are not properly completed or the amount offered is too little.
When it comes to resolving unpaid taxes one thing is for sure: there is more than one way of doing this. Consider all options and then decide which one is best.
Four Ways of Resolving Unpaid Taxes
By: Matt Robinson
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