Finance

Tips for Getting Out of the IRS Delinquents List

It is no secret that most people are not fond of preparing their taxes every year. The consequences for not filing taxes should, however, be a more inspiring aspect that makes them file their Riverside taxes early enough. If they do not, they are in danger of exposing themselves to the consequences of having back taxes. When you don’t pay taxes in the year that you owe them, they become back taxes, and you enter the Internal Revenue Service’s (IRS) list of delinquents. Having a plan and working with a tax professional can help you get out of that list so you can start returning your tax filings inexpensively and in good time. Here are some tips to help you move from delinquency to a responsible taxpayer.

Get Assistance from Professionals

Working with an expert in tax matters can help you quickly resolve any tax problems you might have. This representation is a legal right, and it is best not to handle tax issues on your own. Get in touch with the IRS and ask them to stop collection correspondences while you secure tax representation. It helps to understand your legal rights and the options available to you. You might feel intimidated by the pressure from IRS agents, but you need to handle the matter with calmness. You will get advice from a tax professional and determine the options that you have.

Get an Extension

It is possible to get an extension from the IRS up to six months allowing you to make late returns. Even if you are unable to make payments, you should file your Riverside taxes anyway. Late tax returns attract ‘failure to pay’ penalties every month. If you couldn’t make it every day, the situation becomes worse. You should not allow the penalties to get out of hand.

Negotiate for an Installment Agreement

If the money owed is less than $50,000 in taxes, penalties, and interest, and you have filed all the necessary returns, the IRS will be willing to listen to you. They can agree to set up a monthly payment agreement, but you must apply online to determine if this option is available for you. You can also negotiate for the IRS to reduce your balance if you can provide evidence that you are unable to pay. Your return must have been filed for the IRS to consider your negotiated offer unless you have an extension.

The Importance of Communication

You need to ensure that you are communicating with the IRS and your correspondence is getting to them. Registered email or certified mail works better. You need to keep the records of the communication between you and the IRS so that if need be, you have proof that you have been communicating with them. You should also ensure that you do not miss your yearly tax deadline again or you might get into deeper trouble. Learn your lessons and never repeat the mistakes again. Tax is very important, especially when you want to apply for student financial aid, personal or business loans or even a mortgage. When you get into trouble with the IRS through an audit or delinquency, you should not despair because you have options.

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