If you do not know how to file back taxes, you might be on a slippery slope. Back taxes occur when:
- You did not pay your tax in full
- You did not report all of your income
- You never filed a tax return
Irrespective of your circumstances, once you fall into the trap of back taxes, you may see yourself get the short end of the stick. Once you try to examine the aftereffects of your actions, you can be in for a rude awakening. So, when do you need help filing back taxes? Here are a few scenarios that necessitate the need to file back taxes.
1. You’ve Received a Notice from the IRS
If you have a massive pile of IRS notices for back taxes owed, it is better to act soon or you will have to pay a heavy price later. Rather than adding your new CP14 notice to the notice stack, look for a tax preparation company for filing back taxes.
2. Debt Collectors Are After You
After some time, IRS does not only stick with forwarding notices to your mail. For the next phase, they are going to use the services of a private debt collection agency for your case, but you will be duly informed about this situation.
Unlike the previous case, this time you are in for a surprise. Debt collectors relentlessly pursue you with messages and calls, reminding you of how much back taxes you owe to the IRS.
3. You’re Dealing with IRS-Imposed Penalties
When you do not pay back taxes, the IRS will consider imposing penalties on you. Tax levies allow the government to recover your tax liability by taking control of your property. Moreover, the government may deem it necessary to stop your tax refunds or levy your wages in order to recover their dues. Although an IRS notice precedes such levies, the prospect is still haunting enough to put you in a fix. Therefore, if you don’t want to risk losing your property, wages, or refund, a reliable tax preparation company is all you need to file back taxes.
4. You’ve Been Banned from Traveling
Many people are unaware about this aspect, but your struggle with back taxes can make the IRS limit, deny, or in the worst-possible scenario, revoke your passport. Therefore, if you plan to have a personal or business trip, you can forget about it until you sort out your back taxes.
5. You Owe More Than Your Ability to Pay
If you fear that your entire bank balance will be used up in filing back taxes, just take the bitter pill and proceed with the payment of your dues. In some cases, the IRS ensures that the overall balance is greater than the one that is stored in your back account. Perhaps, the best option for you at the moment is to get some help from a reliable tax preparation company. These companies have experienced and well-informed professionals who can instantly come up with an alternate solution such as a payment or debt forgiveness plan.
In case you are inconvenienced by any of the above-mentioned signs, get help filing back taxes and hire a tax preparation company. Call us today so that our tax professionals can look into your case.