5 Common But Serious Back Tax Mistakes

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Back taxes are not something one should take lightly. If you owe any past due taxes, you should make every effort to pay them back, in full, if possible. If you have any problems with paying the IRS at any time, you should seek advice from a licensed tax relief professional to see what options are available to you to help you avoid common mistakes.

Many taxpayers think they can pay the IRS back at their own leisure. Others simply ignore the problem and hope it will go away. Neither of these solutions are a good idea. When it comes to the Internal Revenue Service it is imperative that you do things on the “up and up.” Failing to make a payment on time can result in serious implications such as fines, interest, and penalties. The last thing any of us wants is an IRS agent knocking on our front door or showing up at our place of business.

The following article will highlight some of the most common mistakes that taxpayers make regarding back taxes and how to avoid them. As always, you should consult a licensed tax relief professional before making any major decisions in reference to past-due taxes.


Mistake One: Delaying to Act

A lot of taxpayers think that if they simply ignore that letter from the IRS or refuse to return any phone calls, that the IRS will simply forget about them and move on. This is not the case and ignoring the situation will not make it go away. In fact, the longer you delay, the more serious your situation will become and the more fines and penalties you will incur. The IRS has the power to issue bank levies and garnish your wages if you do not make an attempt to resolve the situation. You should consult a tax relief specialist immediately to see what course of action you should take.

Mistake Two: Not Knowing Your Rights as a Taxpayer

The IRS can, in fact, be extremely intimidating, as that is their job. However, you need to remember that you have rights as a taxpayer, including the right to be treated with professionalism and courtesy, the right to privacy, and the right to pay only the amount that you actually owe. You also have the right to seek professional representation, such as help from an Enrolled Agent. If you disagree with the outcome of your case, you can ask for an appeal. Make sure that you are aware of all of your rights as a taxpayer. You can find these rights on our website here.

Mistake Three: Paying off Your Tax Bill on A High-Interest Credit Card

You may be worried that you will be faced with additional penalties and fees if you do not pay the IRS back in full. Yes, it is true that they do charge penalties and fines, however, it may be less than the high-interest rates of most credit cards. If you can reach a favorable payment agreement with the IRS, you may be much better off in the long run paying the IRS, instead of a high-interest credit card.

Mistake Four: Failing to Document Everything

It is imperative that you keep copies of any and all correspondence and documentation to and from the IRS. Make sure to make notes of all interactions, including telephone conversations. Always ask for the full name of the person with whom you were speaking, as well as their direct phone number and ID number. Keep a record of your files, as you never know when you will need it. And, always make sure to get any agreement with the IRS in writing.

Mistake Five: Failing to Seek Assistance from a Professional

Sure, you may think you can handle the IRS on your own, but it is always a good idea to get professional help from a qualified tax relief specialist. The laws are constantly changing, so what may have worked the last time you dealt with the IRS might no longer be applicable. Also, what worked for your co-worker or friend may not apply to your case. It is important that you are up to date on the rules and regulations set forth by the IRS. A simple error on your behalf could result in additional fines and penalties. You want to ensure that your rights as a taxpayer are protected, and the best way to do so is to enlist the help of a licensed tax relief professional to avoid any common mistakes.

Not only are we licensed Tax Relief Specialists, we are also former Senior IRS Agents that now serve the best interests of taxpayers like you – all we do is handle IRS Tax Relief matters, all day every day.

  Learn how we can help with your tax matter. Visit our Help Menu today for immediate assistance from our Licensed Enrolled Agents and former IRS Collectors. We look forward to serving you!

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