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4/24/2017

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Paying Back Taxes

Regardless to how much you owe, back taxes can be a heavy burden to bare. But it's a burden that isn't going away until you, the delinquent taxpayer, puts forth the effort to pay them off. You are responsible for paying your taxes, and regardless to excuse you have for not paying them, you are expected to comply with government mandated tax codes.

There are ways to keep the Internal Revenue Service (IRS) at bay. First and foremost, you should contact the IRS before they come after you. It's easier to work with the IRS if you set up a payment plan. A payment plan with the IRS can be set up to reflect your current income. You will be required to give your financial statements along with current expenses.

Once you set a payment plan with, you have to comply with the agreement. If you don't meet your planned obligations, the IRS can forfeit the plan entirely and put a levy against your home or other property you own, put a lien against your automobiles, take a percentage of your wages, and put a levy against any credit cards you may have.

Another way to pay back taxes is to set up an Offer In Compromise. By making this type of arrangement with the IRS, you make an offer to pay back taxes for pennies on the dollar. An Offer In Compromise may negatively affect your credit rating and will remain on your credit report for up to ten years.

When you voluntarily set up a payment five year payment plan to pay off your back taxes, it will help protect your property and may keep your credit rating in good standing. This does not apply in the case of an Offer In Compromise. You should also remember that interest and penalties will continue to be added on to the balance until the total amount is paid off.

Under the Statute of Limitations, the Internal Revenue Service has ten years to collect on back taxes. The willful neglect to pay your income taxes may be viewed as a criminal offense and is punishable by large fines and/or imprisonment.

 

 

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