7 Signs You Need Help Dealing With Your Back Taxes

In the past year, millions of Americans haven't filed or paid their taxes on time. While some have simply forgotten the deadline, others are struggling to pay due to a lack of funds or a bad business year. Fortunately, there are specialists who can provide tax help to anyone who is facing an IRS audit, is at risk of a lien, believes their taxes are unfair, or who doesn't have the money to pay their back taxes.

When you get in touch with a tax resolution specialist, they will evaluate your situation and let you know what the best option is. In many cases, you can take advantage of the IRS forgiveness program, which allows you to defer your payments or even reduce the total amount. Today, we'll have a closer look at when you need help with your taxes and what some of the possible solutions are.

7 Signs You Need Help Dealing With Your Back Taxes

1. You Haven't Filed Yet and Need Tax Help

If you don't file your tax return on time, the IRS will begin to charge you extra. The "failure to file" penalty accrues at the rate of 5% of your outstanding amount a month, so you will quickly owe a lot more money to the IRS. While the penalty is capped at 25% of your tax bill, there is also an interest charge, which keeps accumulating on a daily basis.


As you can see, the fees for "failure to file" are very high, and you should avoid them at all costs. Because the "failure to pay" penalty accumulates much slower, it's best to file your return now, even if you don't know how you will pay your tax bill. A tax resolution specialist can help you double-check the forms and make sure you've filled out all the information correctly, then file the paperwork for you.


2. You're Worried About How to Pay

Business has been extremely challenging in the past two years, and many people have fallen behind on their bills and payments. If you don't know how you'll come up with the money for your taxes, you're not alone, and there are people out there who can help you. As mentioned, there is a "failure to pay" fine, which accumulates at the rate of 0.5% of your total bill per month, so it's best to address the issue as soon as possible.


When figuring out how you will pay the outstanding amount, your tax professional will take into account your current income and expenses. They might make use of the IRS forgiveness program, which allows you to create a payment plan, stop paying taxes until your situation improves, or reduce the total amount so that it becomes more manageable.


3. You Are Facing an IRS Audit

Every year, around 0.6% of the population gets audited, which means that the IRS examines their tax return to make sure they are paying the correct amount. If you've received a notice that it's your turn, there's no need to panic. Sometimes, the government selects people randomly, so an IRS audit doesn't necessarily mean that you've made a mistake.

Despite this, the process can be tricky, and you'll need to provide a lot of information. It's almost always best to get tax help when you're being audited since a resolution specialist can double-check your information and make sure you're not at risk of additional fines.

4. There Is a Tax Lien on Your Property

People who have unpaid back taxes are putting themselves and their property at risk because the IRS might place a tax lien on their assets. A lien is the government's legal claim to a taxpayer's property, including their primary residence, any additional real estate they have, their car and other valuables, their savings account, and even their income. Unless you act quickly, you might lose some or all of the above-mentioned assets.


Together with your tax resolution specialist, you can analyze your situation and calculate the value of your property to see how much the government might claim. Then, your tax professional can get in touch with the IRS and negotiate an agreement that prevents the seizure of property. For instance, you might receive more time to pay, or your penalties and fees could be eliminated.


5. Your Wages Are Being Garnished

A particularly frightening way for creditors to access the funds they're owed is wage garnishment, which involves taking away a part of your income to pay your debt. The IRS has the legal right to garnish your wages if you're not able to settle your tax debt, and they might choose this option over taking possession of your car or home.


Generally, around 15% of your income can be taken away by the government each month. However, the exact amount depends on your income, expenses, and the number of dependents you have. Your tax professional can help you figure out how to pay off your taxes or reduce your tax burden, so your income isn't seized.

6. You Want to Compromise with the IRS

Almost always, the best way to get rid of your tax debt is to negotiate with the IRS and find an appropriate solution. There are various options out there, but not all of them will be suitable for you. Your tax resolution specialist will take you through the possibilities and discuss which one you could benefit from the most. If you have a good income and you've simply fallen behind, an installment agreement, which spreads out your payments, could be appropriate.


However, if you have little to no disposable income, the IRS might allow you to pay less than the original amount. You will have to make an offer in compromise, which can either be accepted or declined by the IRS. Because less than half of these offers are successful, it's best that you consult with an expert before beginning the negotiation process. They can let you know whether the government is likely to accept your terms or not.

7. You Believe Your Taxes Are Unfair

While they try to work as accurately as possible, the IRS does make mistakes on occasion. If you believe that your taxes are too high or that your penalties are inaccurate, you can appeal. Because you have to justify your claims, the entire process can take more than half a year and is fairly complicated. You shouldn't attempt to do it on your own. A specialist can discuss your strategies with you and present your case in the best light possible.

If you haven't paid your back taxes or filed your return or if you're facing an IRS audit, you shouldn't hesitate to contact a specialist, who can help you analyze your financial situation and find a way forward. The longer you delay getting the tax help you need, the more interest and fees accumulate. This can make paying off your debt even more challenging.


In addition to helping you sort out your situation and finding an appropriate solution, your tax resolution specialist will speak to you about the cause of your problem. That way, you can prevent the same issue from happening again in the future. Get in touch with us now at Tax Alliance in Santa Ana, CA to book your initial consultation with our tax professionals. They will be happy to meet with you and help you figure out a way forward.

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Because of advancements in our technology, we are able to communicate with the IRS electronically, its as if we are in the same office! Faster service and more cost effective!

Our Money Back Guarantee!

If you are not happy with our tax services within the initial 21 days, we will give you a 100% refund of services rendered, no questions asked!

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