Tax Preparation Help to Avoid Back Taxes

Posted on February 21, 2022

Tax Preparation Help to Avoid Back Taxes

It is not always intentional misrepresentation tax figures that results in an IRS penalty or tax debt. Many times, taxpayers, especially those who prepare their taxes themselves, or using software, are made aware of the inaccuracies in their tax return by the IRS. In either case, the result is a tax debt

Free Tax Help for Tax Preparation

To avoid making mistakes, taxpayers may seek help from the VITA (Volunteer Income Tax Assistance) or the TCE (Tax Counseling for the Elderly). VITA generally offers tax preparation help to those with an annual income of $51,000 or less. TCE offers free tax help for taxpayers who are 60 years of age or older.

Taxpayers can check for VITA and TCE sites in their local newspaper. Both tax assistance centers have IRS-certified tax professionals to assist taxpayers in preparing and filing their tax returns.

Help for Back Tax Relief  

Whether or not mistakes on tax returns are intentional, the IRS charges interest and penalties on any taxes owed. It is only in cases of Innocent Spouse, where a married couple file jointly but one spouse intentionally underestimated the tax liability, that the IRS relieves a person of a back tax liability.

As soon as taxpayers know they owe the IRS, they must act to pay back the debt because postponement only leads to interest and penalties being charged, resulting in a larger tax debt. Therefore, tax relief should be the first priority to a taxpayer in tax debt, and the sooner that relief is achieved the better.

Tax debt relief can be achieved by tax attorneys and enrolled agents. The tax professionals have the legal right to represent any taxpayer before the IRS to help achieve a favorable resolution of a tax debt.

Tax Debt Help from Tax Attorneys

In cases of tax debt, tax attorneys help taxpayers in achieving:

  • Affordable resolution of tax debt
  • Reduction/forgiveness of tax debt
  • Reduction of IRS penalties
  • Removal of a tax lien or a tax levy

Help from tax attorneys is important for any tax debt resolution that requires negotiations with the IRS. If the tax debt amount can be paid in full with a single payment, then it is strongly suggested that taxpayers pay their tax debt before any penalties are added.