Resolution of back taxes can become complex and time consuming if the correct steps aren’t taken from the start. Many times, a small mistake such as choosing the wrong payment plan prevents a taxpayer from receiving maximum benefits. When seeking relief from back taxes through a payment plan, it’s important to choose one appropriate to your situation that you meet the qualifications for.

Back Taxes Relief: Postponing Resolution

Penalties and Interest: Waiting for the IRS to discover that you owe taxes might sound attractive, but in reality it is quite the opposite. Once the IRS detects the liability, you’ll be charged penalties and interest on the unpaid taxes. The longer you wait to resolve the debt, the more you will need to pay. It’s important to remember that the IRS created this system to encourage taxpayers to resolve their back taxes as early as possible.

Collection Actions: Postponing your resolution has another disadvantage: IRS collection actions. If your back taxes remain unresolved even after you’ve been sent multiple notices, you may be faced with a tax lien or even a levy. It’s never pleasant to have your bank account or your wages garnished and resolving your debt early on can prevent just this type of action.

Back Taxes Relief: Hiring Incompetent or Fraudulent Tax Help

Another common mistake that can complicate a tax case is to get an incompetent tax service to represent you. Before hiring a tax debt resolution service, research their history, the kind of tax cases they have resolved, and the number of consumer complaints against them. You should also expect a free consultation with any tax service you choose.

When seeking relief from back taxes, study your case, the tax rules that apply to your situation and the IRS payment plans that offer resolution. If you have a complicated tax case or you owe a large amount in back taxes, it’s advisable to seek help from a hired service.