How to Handle Owing Uncle Sam Back Taxes

Taxes are complex, with ever-changing rules. It's easy,will not be able to provide copies of specific
particularly for those who file manually, to make adocuments. If you choose to hire a tax professional or
deduction or report income incorrectly. Unfortunately,certified public accountant (CPA), they will be able to
whether or not underreporting income was intentional,retrieve information from the IRS on your behalf.
not paying or underpaying income taxes will result inOnce the correct amount of debt is determined,
action from the IRS. If this happens to you, what arenegotiate a plan for repayment. However, keep in mind
the steps you should take to resolve the situation?that before the IRS will negotiate, your must file and
The first, most important thing you can do: determinepay your taxes for the most current tax year, as well
why you've received this notice. Are you being backas any other necessary payments. After you've made
taxed because you failed to file a 1040 the previousan arrangement with the IRS, it's very important to
year? If that's the case, take immediate steps to file asyou're your payments in full and on time.
soon as possible. After you've filed, then contact theSolutions for back tax repayment vary between
IRS immediately to negotiate a possible solution forindividual circumstances and situations. It's between you
your delinquency fees.and your tax professional to determine what is right
What if you owe due to human error on your taxfor you. The key factor for successfully dealing with
return? Review your archived tax returns andthis situation is to address it as soon as possible. The
determine if the amount of back tax owed is accurate.faster you respond, and the more honestly you have
You should be able to receive more information aboutpresented yourself to the IRS, the more likely they are
your case by contacting the IRS directly, although theyto work with you towards the best solution.