Tax season causes many people a lot of stress and anxiety. Some people worry about finding all the necessary paperwork and receipts,while others worry about owing money they are unable to pay back. While most people receive a refund at tax time,some end up owing. Regardless of the reason,dealing with the IRS when you owe back taxes is not something anyone wants to face. According to https://www.dilawctory.com/the-w-tax-group-18952.html,when you owe back taxes,there are a number of ways to pay them back.
Tax Repayment Tips
The IRS,of course,wants their money,so they do make it relatively easy to pay them back with a number of options.
If you do have an outstanding bill with the IRS,pay it back; the sooner you pay it off,the less it ends up costing in terms of penalties,interest,and late payment charges. You can also use IRS Direct Pay and make your payment straight from your savings or checking account online.
If you are able to pay your taxes in a 120-day period,you can apply for a short-term payment extension. You can apply to the IRS online or by phone.
If your back taxes are less than $50,000,you can also apply for an online payment agreement like a monthly payment plan.
If you can prove that making a full payment on your back taxes will cause a financial hardship,you might be eligible for an “Offer in Compromise,” meaning you can pay your tax amount in less than full.
To avoid owing back taxes,be proactive and change your withholding,meaning you fill out a form requesting your employer to take off more tax,and this will give you some coverage to avoid owing in the future. When it comes to dealing with the IRS when you owe back taxes,it’s not as bad as you think. There are a number of repayment options designed to make it as easy as possible. For more info:Michigan