What Should You Do If the IRS Says You Owe Taxes?
If you always submit your tax returns on time and pay the balances you owe, you probably think you will never have a problem with the IRS. Some people never experience problems with the IRS if they do these things, but others do. If the IRS believes that you calculated your tax returns inaccurately, they may send you a letter that states that you owe back taxes. If you received a letter about this, here are several things you should know.
How You Owe Taxes If You Paid Them
When you complete your tax returns and pay the amount that you owe, you assume you paid the right amount. The IRS audits tax returns, though, and they often find mistakes. If you inadvertently forget to include a 1099 on your form, the IRS will catch it. They will adjust your return to include the extra income you failed to add, and they will send you a letter that you owe more money. This example is one of many ways you might owe the IRS money, even if you do not think you do.
What You Should Do
When you receive the letter from the IRS, you should double-check your tax returns to see if this is correct. If you are not sure if it is accurate, meet with a tax attorney. A tax attorney can review your forms and documents to determine if you owe the money. If you do not owe the money, the attorney can contact the IRS and fix the problem. If you do owe the money, you should pay it if you can.
What You Should Do if You Cannot Pay the Money
If you find out that you owe a lot of money to the IRS that you cannot pay right now, talk to your tax lawyer to find out your options. You will need to do something about this problem, as it will not go away without action, so you must find out your options. One option is to set up a repayment plan with the IRS. If you do this, you can make payments until the debt is paid in full. The IRS allows payment plans like this if they meet their guidelines. Your lawyer will know how to create a plan that the IRS will accept.
If you have questions about a tax debt you owe, talk to a tax attorney today. The problem will never disappear, and the IRS can use many methods to collect the money you owe.