Paying Back Taxes and Filing Back Taxes - IRS Help

If you cannot afford to pay, and therefore did not file back taxes, you have a few options. You may be eligible for an Offer in Compromise, an Installment Agreement, which is basically a back taxes payment plan or a Status 53 to deal with owed back taxes. Owed tax debts are also something that is not without option if you are unable to pay back state taxes.

An Offer in Compromise is an agreement between you and the IRS towards paying back taxes owed to settle your tax debt for a smaller amount than your overall owed back taxes. IRS Installment Agreements are essentially a monthly back taxes payment plan spread out over five years or less to get you started in paying back taxes owed and cleaned up over time. Another potential strategy behind filing back taxes is having your tax account status declared “Currently Not Collectible” – or Status 53. This is an option if you have no disposable monthly income or non-essential assets for the IRS to seize for the purpose of paying back taxes. IRS collection efforts will stop temporarily, and when you are able to pay, you can begin to pay off what is owed. Back taxes will not go away, but you do have some time, if you are eligible, to get back on your feet. At that point, you may be able to put together an Installment Agreement to set up a back taxes payment plan.

Not being able to pay your taxes is a serious issue. The IRS has no way of knowing your situation unless it is communicated to them, and the best way to start is by filing back taxes with the proper forms. We can help you file back taxes, and can also answer questions if you are unable to pay back state taxes. If no resolution is sought, the IRS has no other option but to initiate collection activities on your account. This means that they may place a lien on your home, garnish your wages or seize your bank account and other property, so you would be wise to file back taxes with the proper paperwork and assistance.

Time is an important factor. The longer you wait, the more penalties and interest the IRS may add to your tax account. The same hold true if you are unable to pay back state taxes. Complete the form on this page and a tax professional from FSI Tax™ will contact you to discuss your options. Contact FSI Tax™ and let our tax professionals assess your situation, explain your options and answer your questions.