If you’ve recently come to the realization that you owe back taxes to the IRS, our Sacramento team can help you to explore your options and to reach a resolution no matter where you live. We can help you examine the different routes that are available and pursue whichever makes the most sense for you. With help from our experts, we’re confident that you can get back into good standing with the IRS.
So what are your options if you have back taxes that you need to pay off?
Pay Your Back Taxes
This may seem obvious, but paying your back taxes off right away is the best option–if you can afford it. If you can, you’re able to use the IRS Direct Pay system to pay online from your bank account with no charge to you. Of course, paying back taxes outright simply isn’t realistic for many taxpayers. In this case, our experts can help you to negotiate an alternative strategy.
File for an Extension
If you’re expecting an increase in your cash flow in the next few months, the Paramount Tax Relief team can help you file for a 120-day extension to pay back your taxes. This is a good route for taxpayers who are anticipating an increase in revenue, expecting a windfall, or just need time to organize their funds. If you’re expecting a raise, bonus, or inheritance, for instance, we can likely help you get an extension.
Set Up a Payment Plan
Depending on how much you owe, your income, and other factors, you may be able to apply for a monthly payment plan. The Paramount Tax Relief team can work with the IRS to help find a monthly payment plan for you. As long as you meet your monthly payments and pay on time, you will remain in good standing with the IRS while eliminating your debt over time.
Propose an Offer in Compromise
An offer in compromise, or OIC, allows some taxpayers to settle their back taxes for less than they owe. Our Sacramento area team can help you to form an OIC with terms that are both plausible for you to meet but also likely to be approved by the IRS. This balance can be tricky, but our experts are here to help you.
When faced with back taxes, the most important thing is to get the help you need and to form a plan; ignoring tax debt can lead to bank levies, wage garnishments, and other penalties. To speak with our expert team and start forming a plan to resolve your tax issues, be sure to contact us by calling (916) 533-9940 today!