It is not uncommon for Americans to struggle with back taxes. Millions of taxpayers owe money to the Internal Revenue Service each year. Back taxes can include everything from common filing mistakes that lead to miscalculations, or simply a small business owner paying back the difference in what was not covered in quarterly estimated payments.
You may owe money to the IRS but that does not have to be the case forever. Back tax help is available to any taxpayer that is not afraid to request assistance. Levy & Associates has more than six decades of experience in the industry. We offer a wide range of tax solutions that can finally get you out of the red.
Back taxes are the amount due to the Internal Revenue Service after you successfully calculate and file an annual income tax return. In other words, it is tax debt that you owe to the IRS and that you are financially responsible for paying back.
Back taxes are not any different from other forms of debt. Notwithstanding, the federal programs to get out of debt are far more accommodating and reasonable compared to a similar predicament with, say, a credit card company.
Consequently, back taxes are manageable if you have the right team on your side. There are many types of tax debt relief depending on the degree of your financial problems.
Furthermore, an IRS Installment Agreement allows taxpayers to pay back taxes in monthly premiums like other types of payment plans. The difference is federal government interest rates and penalties do not make it impossible to satisfy back taxes unlike other forms of debt with obnoxiously high-interest rates.
Back taxes are an unfortunate reality for many taxpayers that work non-traditional jobs where Social Security and Medicare are not automatically deducted from each paycheck. Thus, it is important not to panic even if the debt seems unbearable.
There are many ways to recover from back taxes with the most common being establishing a payment plan with the IRS. Any taxpayer that owes less than $10,000 automatically qualifies for an IRS Installment Agreement. Moreover, the Internal Revenue Service may work with individuals with $50,000 or more in back taxes with other solutions like proposing an Offer in Compromise.
It is recommended that you contact a tax professional to discuss your options. The larger the debt, the more you may need professional assistance to get back on the right path. Fortunately, the IRS is willing to work with taxpayers in most situations, so relief is available. Contact Levy & Associates to discuss your options.
The simplest way to discover if you owe money to the IRS is to file an annual income tax return. Even if you are concerned with how you will afford back taxes, avoiding filing a tax return is a costly mistake. Rather, it benefits you much more to file an annual return on time to avoid additional penalties.
Once you calculate your income tax, the return will walk you through whether you are getting a tax refund or owe money. Small business owners and freelance contractors generally count on paying back taxes since their wages are deducted differently than standard W2 earners.
Additionally, a tax professional can provide back tax filing help. There are several ways to approach this problem so never be afraid to ask for help. Levy & Associates has been serving clients and providing them with financial advice since the 1960s.
Sadly, many Americans neglect to file and pay back taxes now which becomes costly later in life. For example, Social Security is not available to people that haven’t filed taxes even if they have Social Security deducted from their earnings.
Of course, it is impossible for the federal government to reward Social Security when there is no record of payment throughout the years. Nonetheless, those that were only delinquent for a handful of years can recover and eventually earn Social Security with the right approach.
In general, the IRS is not going to award any Social Security until you file past due returns as well as pay back taxes. While you’ll likely be penalized in the short term, there are many financial relief programs that can forgive at least a portion of the debt.
Contact a skilled accountant or former IRS officer at Levy & Associates to get our expert opinion. It costs you nothing to meet with us as we go over your options. Call Levy & Associates at 800-TAX-LEVY.
Levy & Associates is available for free initial consultations. We’re happy to answer any questions you have about the audit process or address any concerns about your specific situation.
There’s never a good time to be audited, and the time-consuming process will take away from your business or family if you try to face it alone. Let us handle and coordinate communication, so you can return to your daily life.