Each year, millions of Americans owe taxes to the Internal Revenue Service (IRS). This can occur for a variety of reasons. For many, the amount is more than they can pay by the tax deadline. When failing to pay the IRS, the money you owe will be turned over to collections. When this happens, for some, it can be overwhelming. Even when you owe money to the IRS, help is available. Learn more about the reasons why you owe on your taxes, tips for working with the IRS and options to pay back taxes from your Denver accountant.
Reasons You Owe on Your Taxes
During tax season, you may have owed money on your taxes and were not able to pay the amount by the tax deadline. This could have occurred for a variety of reasons. For started, working as a freelance or self-contractor, you are responsible for taking out your own taxes as the employer will not. For others, when they sell a home at a higher price than it was purchased for, there is a chance you will need to pay more in taxes on that sale. Certain individuals also receive a large lump sum of money, whether it be through a gift, gambling winnings or inheritance, you will owe taxes on those dollars.
Tips for Working with the IRS
If taxes owed to the government are not paid on the annual deadline, those who have not paid will receive a bill from the IRS. In addition, you will also receive the taxpayer bill of rights. Know what your rights are by reading the IRS’ Taxpayer Bill of Rights
. During this process, you can work with a local accountant to help you learn your rights and create a plan to pay back the funds. It is important to know the IRS’ word is the be-all, end-all. There are times where mistakes are made or you can work with them to pay back a lower amount. To help you pay, they can do things such as liquidating assets.
Options to Pay Back Debts
There are options to help you pay back your taxes to the IRS. First, you could use their time extension. This gives you an additional 120 days. You can also take advantage of an installment agreement to help you pay in smaller chunks in return of the funds being pulled straight from your bank account. There are options to make exchanges too, which is something you can discuss with your accountant. When paying back the IRS, you can pay through a credit card, bank transfer or check. This can be done in-person, online or over the phone.
Are you wondering what to do for your situation involving IRS collection information
? Bloch, Rothman and Associates can help. We know all of the ins and outs to paying back taxes. By working with us, you will know and understand your rights, too. To get started, Contact Bloch, Rothman and Associates
today to get started on your case and help you easily manage working with the IRS.