How to get rid of back taxes
  • November 11, 2022
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Back taxes can be the stuff of nightmares as they can trigger severe tax collection processes, including liens, wage garnishments, and levies. While the IRS recommends clearing back taxes at the earliest, you may also opt for provisions that are available under the Fresh Start Initiative (FSI). One of the provisions is the IRS offer in compromise (OIC), which is a monetary concession that allows the IRS and taxpayers to settle unpaid dues for less than what is owed. Requesting for an OIC requires taxpayers to comply with intricate eligibility criteria, which is why it is advisable to consult a Dallas-based tax attorney. That said, continue reading as we discuss a concise guide to paying back taxes.

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Steps to follow if you owe back taxes

Back taxes are unpaid (partially or fully) taxes from previous financial years. After receiving a notice from the IRS about such taxes, you need to follow these steps:

  • Check for any discrepancies or errors in returns: Generally, tax returns are a reflection of your financial status, meaning if your earnings are almost the same from the last year, ideally there shouldn’t be any changes in the tax return. It is also advisable to check for any deductions and credits that you might be eligible for and then respond accordingly.
  • Reduce your penalties: Requesting provisions that help reduce additional penalties is one of the vital steps when dealing with back taxes. This can be achieved by requesting a first-time waiver, filing an extension, Currently non-collectible status, or seeking IRS penalty abatement.
  • Formulate a payment plan: As stated earlier, based on the eligibility criteria, taxpayers can choose the right payment plan from the IRS Installment Agreement and the IRS Offer in Compromise.

Determining eligibility for the provisions under the FSI comes with several legal complexities, which is why it is advisable to consult a debt attorney to help you chart the best possible way.

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Mistakes to avoid if you owe back taxes

When it comes to back taxes, even a slight mistake (intentional or unintentional) can trigger serious tax collection procedures. Common mistakes to avoid include:

  • Not paying taxes: As a taxpayer, it goes without saying that not paying taxes will only land you in serious trouble. This includes ‘failure to file’ & ‘failure to pay’.
  • Not knowing your options: The IRS provides several tax help options such as the IRS offer in compromise, penalty abatement, and payment agreement to help taxpayers conveniently. The only way you can find a resolution to your IRS problem is first knowing your options.

Need help? Consult an IRS tax attorney

When it comes to dealing with back taxes, it is always advisable to act sooner rather than later. From interpreting the notice correctly to responding with the right documents and requesting a payment plan, it is advisable to hire a tax attorney that can help you navigate the legalities. When looking to consult a Dallas tax attorney, look no further than the Law Offices of Nick Nemeth. We are a leading name when it comes to providing comprehensive tax solutions for all types of IRS tax problems. To discuss your requirements, call (972) 426-2553. Alternatively, you can fill out our contact form.

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What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
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