How Do You Handle Owing Uncle Sam Back Taxes?
Taxes are complex, with ever-changing rules. It’s easy, particularly for those who file manually, to make a deduction or report income incorrectly. Unfortunately, whether or not underreporting income was intentional, not paying or underpaying income taxes will result in action from the IRS. If this happens to you, what are the steps you should take to resolve the situation? The first, most important thing you can do: determine why you’ve received this notice. Are you being back taxed because you failed to file a 1040 the previous year? If that’s the case, take immediate steps to file as soon as possible. After you’ve filed, then contact the IRS immediately to negotiate a possible solution for your delinquency fees. What if you owe due to human error on your tax return? Review your archived tax returns and determine if the amount of back tax owed is accurate. You should be able to receive more information about your case by contacting the IRS directly, although they will not be able to
