Back Taxes Help in Atlanta, GA
If you are like most taxpayers, you know how important it is to file accurate and timely tax returns, so you have never missed a filing deadline. However, many taxpayers find themselves in the undesirable position of finding out they are not only not getting a tax refund, they actually owe more taxes to the IRS or state. Unfortunately, these taxpayers often do not have funds readily available to pay those taxes when due. Left unpaid, the original amount owed can quickly snowball and become a much larger figure, as interest and penalties are applied.
Why you might owe back taxes
There are many reasons you may owe back taxes; maybe you are a business owner who did not pay enough throughout the year in estimated taxes or payroll taxes. It's also possible that changed family circumstances or financial decisions you made throughout the year meant that the tax withholding on your paycheck was no longer sufficient, or maybe you had unexpected income that kicked you into a higher tax bracket. People who take taxable distributions from retirement accounts without having enough withheld for taxes can also find themselves facing a tax bill in April.
Whatever the reason, the reality is that you owe back taxes and, if they are not paid in a timely manner, the amount owed will only continue to grow as interest and penalties are applied.
Don't ignore back taxes!
If you have been notified that you owe taxes (plus penalties and interest) to the IRS or a state taxing authority, don't ignore it! First of all, until the debt is paid in full, it will continue to accrue interest and penalties so the longer you wait, the more you will pay.
The IRS or state may also aggressively try to get what they are owed. In some cases, they may put a lien on your property, seize assets or garnish your wages.
What options are available for back taxes?
The options available to you will depend on how much money you owe, which taxing authorities you owe, and on your current financial situation.
Some taxpayers may be eligible for payment plan arrangements (installment agreements). With an installment agreement, you pay what you owe over a period of time - up to 72 months! And, in some situations, taxpayers who have liens against their property may be able to have those liens removed once they are in an installment agreement.
Another option for some taxpayers is an Offer in Compromise, which is an agreement where the IRS agrees to accept less than the full amount you owe as satisfaction of your debt.
There may be other possible solutions to consider; a tax specialist can help evaluate your situation and recommend ways to help you address your back taxes.
Flick Financial can help!
If you owe back taxes to the IRS or to one or more state or local taxing authorities, contact Flick Financial, LLC today for a free consultation with our tax specialist. We will work with you and the taxing authorities to determine what options might be available and make sense based on your current situation.