• March 23, 2020
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Whenever you don’t pay your taxes, back taxes accumulate. Essentially back taxes are any previous taxes that haven’t been paid in time. As time passes, penalties and interest also pile on, making the overall debt grow significantly. Thankfully, those struggling with growing back tax debts have many ways to regain control over the situation. Alternatives such as the IRS Offer in Compromise, installment agreements, and penalty abatement can be great solutions depending on the specifics of your case. In today’s post, we explore each back tax resolution option to help you select the best one.

Solutions for Back Taxes

No matter how serious your back taxes problem is, getting acquainted with possible solutions is the first step to take. By learning more about your alternatives such as going for an IRS offer in compromise or installment agreement, you can better decide on the best course of action.

IRS Offer In Compromise (OIC)

If paying off your entire back tax debt is impossible at the moment, you could find relief by making an Offer In Compromise to the IRS. Through this method, you offer to pay a portion of your back taxes. In exchange, the IRS might dismiss the rest of the debt.

Related Post: Owe the IRS? Here are 5 Things You Must Remember

To get your Offer In Compromise accepted by the IRS, you need to prove that paying off the full balance of your debt would be impossible or would put you under extreme hardship. In evaluating your situation, the IRS will take a close look at your financial information. Your Offer In Compromise will be considered taking such data into account. Once your Offer In Compromise is accepted, you’ll have 2 years to pay off the agreed balance.

If you are dealing with back taxes, making an offer in compromise might be a good alternative, depending on your situation. A tax law attorney can help you determine whether this is the best option for you.

Installment Agreement Or Payment Plan

The best alternative to get rid of back taxes is speedy full payment. However, when this is not a choice, setting up a debt payment plan with the IRS is another great alternative.

To set up an installment agreement with the IRS, you’ll need to fill out Forms 9465. Depending on the amount you owe, you might need to also supply financial statements. The time span and amount of each payment will depend on your specific situation. By keeping up with your scheduled payments, you manage your debt well and reduce any penalties and interest.

Related Post: Tax Relief Options for Couples on Joint Returns

Pay Off All Your Back Taxes

If your current finances allow you to liquidate your back taxes, penalties, and interest, you should do so as soon as possible. Full and quick payment is always the best way to deal with back taxes. You need to get all your tax documents and forms ready. Afterward, complete your returns and submit the forms. A tax attorney can help you work through the entire process to prevent any unfortunate mistakes.

Last Words

If you have fallen behind on your tax payments and are dealing with back taxes, please act quickly. A tax attorney is your best ally during such a process. If you think one of these solutions could work for you, it is advisable to consult a seasoned tax lawyer for more information and the necessary help. That is when you can count on The Law Offices of Nick Nemeth and our team of seasoned IRS tax lawyers. For a free, no-obligation consultation, simply call (972) 426-2553 or fill out our contact form and we’ll take it from there.

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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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