Solve Your Back Tax Troubles

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If you earned money in the calendar year, you have to file an income tax return. If you had enough withholding, you may not need to pay the IRS anything. However, if you owe, you need to pay as soon as you possibly can. Stalling tactics and delay doesn't work with the IRS. The IRS is the most tireless collection agency in the world. If you owe them money, they aren't just going to go away.
If you really cannot pay your taxes, you might be qualified to get a tax discharge. This would mean that you receive complete forgiveness on the back taxes and own nothing at all. For this to take place, your back taxes should be three years overdue, at least. Next, you must be able to prove that your failure to pay involved no deception or fraud on your part and that you are not just simply attempting to avoid payment. You must be able to fully document that your financial troubles make it impossible to pay what you owe and that your past returns were in no way falsified.

If you owe the IRS tax money and cannot pay in one lump sum, you may want to seek to make an installment arrangement with the Internal Revenue Service. In order to qualify for a partial payment plan with the IRS you will need to be current with your most recent income tax filing and you must have submitted all previous years' income tax returns, as well.


An installment agreement can be reached under the terms of partial payment. That is to say, that if you owe the Internal Revenue Service back taxes and you come to an agreement to make a settlement payment, say fifty cents on the dollar, to satisfy the claim, you can make those payments on an installment plan even though the Internal Revenue Service will not collect your debt in full upon completion of payments. Once you have paid the agreed amount of settlement, the IRS will forgive the balance.

Before going into this type of arrangement, you need to know exactly how much money the Internal Revenue Service has determined you owe, including interest and penalties. If you are uncertain about the sum, the Internal Revenue Service will provide you with the breakdown and copies of your income tax filings.

You might want to engage the services of a tax resolution expert to help you in filing forms and applying for a tax resolution installment option. Together, you will need to arrive at a conclusion of how much you can afford to pay. In support of this conclusion, you will need to provide the Internal Revenue Service with three months documentation as to income versus expenses. You will then need to send the IRS a letter expressing your desire to resolve the matter via an installment arrangement.


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Occupation: Tax consultant
Chintamani Abhyankar, is a well known expert in the field of finance and taxation for last 25 years. He has written many books explaining inside secrets of the magic world of personal finance. His famous Tax eBook “Stop donating your money to IRS” which is now running in its second edition, provides intricate knowledge and valuable tips on personal finance and income tax.
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