Cannot Pay Back Taxes
Can’t Pay Your Back Taxes In Minneapolis, MN?
Having unpaid taxes and having taxes you can’t pay are a rather common occurrence with the IRS. In the last year alone over 19% of people living the USA had unpaid or back taxes, so you don’t need to worry (at least not much) as there are multiple solutions that fit the needs of each individual to enable them to pay their taxes.
You should keep in mind that the IRS will try its best to take the maximum amount owed with the least effort. This should be a constant reminder for you to take action faster regarding your unpaid taxes, and settle your taxes for less than the actual price owed.
Taking action first makes it a lot easier to pay off your taxes and resolve your issues with the IRS. The IRS follows an automated process that finds people and makes them pay. So in short where-ever you are, the IRS will eventually find you and make you pay more than the original amount. Read on to learn what can happen if you take too long to decide on what to do.
When You Can’t Pay Your Owed Taxes
Even if you can’t afford to pay your taxes, you still have to pay the IRS somehow. Obviously since you can’t pay the full amount owed, you can opt for many other methods pre-established by the IRS. These methods range from monthly payments to paying a fraction of the original to settles the whole tax. The IRS will always work with you to find the best way to get the taxes.
Paying Back Due Taxes
There are more than a few ways for you to pay your due taxes or back taxes. There aren’t just ways to help you pay your taxes, but there are also methods that’ll help you reduce your taxes. Here are some steps you can take to pay your back or due taxes.
Automated Collection Process and CP Letters
Once the IRS decides you owe them back taxes, they will start sending you computer generated and automated notices reminding to you to pay taxes. The first letter you’ll receive is an assessment letter which will say that you have not paid taxes for a stated period. The next one you’ll receive will be bundled together with penalties and interest. Following the first letter that contains the minimal penalty, it goes up to 75% of what you originally owed. After receiving the first letter, you should still have plenty of time to pay taxes. Just keep in mind the longer you wait the harder it will get.
What Happens If You Can’t Pay Your State Taxes?
Similar to the IRS, states also take the same actions against taxpayers and provide similar methods to gain a solution. Each state has their own rules and resolution methods to various tax problems. Refer to your state tax relief guides to resolve issues with your state taxes. This can be found on your states tax affiliated website. Contact us now for a free quote!