Whether we like it or not, taxes are a major part of our lives, and you can expect to pay them regularly. Unfortunately, you might have made a mistake when filing your taxes, and now you owe the IRS backtaxes, despite your best efforts to pay them all.
It’s a tough situation to be in, and not paying could leave you in dire straits. But, what can you do when you’ve gotten behind on your backtaxes? It’s frustrating, but there are people and programs that can help with backtaxes.
If you’re struggling to pay off your debts, reach out for help paying off these debts. Since they can haunt your future if you don’t take action, be sure to check your backtaxes and act now.
Act to Avoid Penalties
First, though, what’s so important about paying off your backtaxes? Everyone owes for their taxes, and many of them owe far more than you do. So, what does it hurt to owe a little bit in backtaxes?
Unfortunately, letting your backtaxes build up can do a lot of damage. Your penalties and fines for not paying your backtaxes can add up. If you don’t pay on time, you might owe around a half of a percent of the costs of your taxes. While this may not seem like much, this builds up, and it can become up to 25 percent of your taxes.
As such, it’s best to avoid these penalties where possible, even if you’ve already missed the deadline. You may need to discuss your payment options and make sure that you’re keeping the amount you owe to a minimum. If you leave it alone to build up, it can negatively affect your future.
Paying Back Your Taxes
When you owe backtaxes, the best way to pay them off is to do it as soon as possible and to make the largest payments you can afford. You want to minimize the possibility of dealing with fines and trouble with the IRS, and paying off your backtaxes is the best way to do this.
Fortunately, the IRS does provide several ways for you to pay what you owe. If you’re not sure how much you owe or where you can pay, look at their website. They have tools for you to pay via credit or debit card, or you may want to pay in cash and go to one of the locations available to help you get your payment to the IRS.
What if I Can’t Pay Now?
Not everyone has the funds to pay of their backtaxes right now, and you might need help getting yours handled. Fortunately, there are ways to defer or reduce the taxes you owe when you’re struggling to keep up with your expenses.
For example, you might seek out an offer in compromise. This is offered to those who either can’t pay or would suffer financial hardship if they did pay in full. As such, if you’re eligible, you could settle your debts and pay less than the full amount.
Otherwise, you might just be in a tough spot and need a little more time before you’re able to pay. In these cases, you may be able to defer payments until you’re able to pay.
Get a Lawyer’s Help
Dealing with taxes can be confusing already, and when you’re struggling with backtaxes, it can feel like you’ll never get out of debt with the IRS. Luckily, you have a chance to clear that debt and pay the backtaxes you owe.
If you’re struggling with backtaxes, reach out to a tax attorney or the IRS’s website to clear your backtaxes. Taxes may be a normal part of life, but they don’t have to put you in debt.