Taxes are something everyone in Georgia and the U.S has to deal with at one point in his or her life. Although many individuals won’t have an issue paying their taxes, other people may not have such a positive outcome. Plenty of reasons exist as to why someone could become indebted to the IRS. His or her account may have provided bad service, or a person simply neglected to pay his or her taxes. Fortunately, there are ways to pay back what you owe.
Don’t make the situation worse
One of the most frequent mistakes people make is not continuing to file their taxes. They may avoid filing because they don’t have the funds to pay for what they owe, let alone what the IRS requires from them for the past year. According to tax law, the IRS will levy a 5% monthly penalty on the owed taxes, making your situation a lot worse. Thus, it is important to continue filing even if it means asking for an extension.
Work with the IRS
It may seem like a daunting task, but working with the IRS is one of the most effective ways to pay back what you owe. The IRS offers various payment plans that can drastically reduce what you pay per month. However, you should be aware that these payment plans do come with additional fees.
Seek a CPA’s services
As stated above, the process of paying your owed taxes is an intimidating task for just about anyone. That is why you should seek the services of a CPA. A CPA, or certified public assistant, may be able to help you get your affairs in order and even help you craft a budget.
Although paying back taxes isn’t something that you can get out of, it is important to have legal representation throughout the process. A good attorney may provide you with the legal knowledge to keep you on the right track and protect you from pushy IRS agents.