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Back Taxes Owed

Top NYC CPA Firm · Best Rated Accountants in New York City

Back Taxes Owed

Owing taxes from years past can feel like a threatening dark cloud at the horizon. No matter which way you turn, it’s always there. Maybe your tax troubles started innocently enough — you just didn’t have the money to pay your taxes one year. Or maybe it came all of a sudden when you finally completed one or more non-filed tax returns.

Not paying the back taxes you owe can have dire consequences; don’t wait until you have all the money to pay them, Take action today! Miller & Company LLP, NY Certified Public Accountants, a best rated CPA New York firm.

Like those non-filed tax returns, owing back taxes is a problem you cannot ignore. Not filing your federal tax returns is a crime; not paying the taxes you owe from previous years can mean penalties and fines that can triple the original amount you owe. The longer you let it slide, the more money you’ll potentially have to pay.

Don’t Wait

Even the most successful entrepreneurs, the best paid executives and the most prosperous individuals can have problems with back taxes owed. Tax penalties and interest add up fast. Find a licensed tax accountant in NYC and the New York City metropolitan area who can help you contact the IRS to:

  • Stop the penalty clock
  • Decide how to minimize the penalties and fines you may have to pay
  • Argue your case for leniency

The New York CPAs at Miller & Company with offices in NYC and Queens have experience helping successful people and businesses get out from under the weight of the back taxes they owe. Tax resolution services can definitely help. Don’t get the wrong idea — you’ll likely have to pay the taxes you owe. With the help of a skilled tax accountant, though, you won’t have to come up with all the money right away or even all at once.

Consequences of Unpaid Back Taxes

You’re not the first businessperson to defer tax payments without informing the government. If you let it go too long, you risk:

  • Being discovered and prosecuted by the IRS
  • Increasing your debt to the government
  • Losing your good credit rating

If you try to handle back taxes by yourself, you may end up writing one big check to cover the taxes you owe, the fees and penalties you accrued and the interest that built up over time. Or perhaps you’ll just continue to ignore the problem, letting the amount you owe keep stacking up. Both actions aren’t the best way to resolve your back taxes. The smartest tactic is to hire the best rated NYC accountant, Miller & Company tax accountants to go to bat for you.

Get the Help You Need

Miller & Company offers this advice of things not to do when you find yourself in trouble due to back taxes:

  • Don’t panic
  • Don’t let your back taxes slide any more than they already have
  • Don’t take money out of your retirement account to pay off your taxes
  • Don’t pay back taxes with a high interest credit card, as even the IRS offers interest rates that are more reasonable

When you hire a Manhattan tax accountant with an impeccable reputation, you’ll have to be prepared to open your books and your trust. The experienced NYC CPA at Miller & Company steadfastly remain on your side. They’ll give you honest answers and advice for best getting out of your tax predicament.

After you contact Miller & Company, you have options that your personal tax accountant can share with you. Together, you’ll come up with a plan to minimize your penalties and get the best deal possible. The accountant will then contact the IRS to put your plan into action.

You Have Options

Your tax CPA in NYC acts as your representative to the IRS. That means you won’t be involved in the process directly, except to sign paperwork and necessary forms. Paying your back taxes follows a procedure that — depending on your situation — may follow steps like these:

  1. Make sure you really owe money to the IRS
  2. Determine the amount you owe
  3. Minimize your penalties and interest as much as possible
  4. Avoid a tax lien
  5. Formalize a plan to pay what you owe:
    1. If the amount is manageable, pay it off in one lump sum
    2. Ask for an installment plan, if allowable
    3. Make an Offer in Compromise, if necessary

Whichever plan your tax accountant and you decide to pursue, you’ll feel a sense of relief. Keep in mind it’s not over until you make that last payment to the IRS. In the meantime, make sure you follow up and make your payments on time.

The IRS Payment Plan Option

The IRS is required to allow you to make payments to settle your debt to the government if you owe back taxes. To qualify for an IRS payment plan, also known as the IRS Fresh Start program, you must meet certain requirements:

  • You owe $25,000 or less — although the Direct Debt Installment Agreement lets you pay off amounts up to $50,000
  • You can prove that you cannot pay the amount you owe now
  • You can pay off the taxes you owe within three years

You file IRS Form 9465, which is an official installment agreement request to the agency. Your tax accountant can do this for you — assuming you qualify and you both decide that the payment plan is the best way to go for you. A CPA acting as your tax representative sets up installment payments with the IRS.

The Offer in Compromise Option

The IRS offers another option if you know you’re going to have trouble paying off your back taxes — especially if you accrued many fines, penalties and interest. It’s called an Offer in Compromise or OIC, and this alternative lets you pay a portion of the money you owe, while wiping the debt off your record. Obviously, it comes with catches.

If you and your tax accountant from Miller & Company decide on pursuing an OIC, you have to put together your case. The IRS considers Offers in Compromise one at a time, so your tax representative puts together your “case” to present to the IRS. You have to ask the IRS to verify that you indeed owe as much as they claim. Then you have to prove that you don’t have the resources to pay the entire amount. It’s a complicated process for which you need competent tax accountants from Miller & Company.

Do you have questions about services we offer including Back Taxes Owed in NYC and Long Island? Would you like to receive a personal Back Taxes Owed consultation customized to your specific needs? To schedule an appointment with a nationally recognized, best rated NYC accountant, Paul Miller of Miller & Company LLP firm, please contact our Long Island or NYC tax accountants for a FREE CPA consultation.

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The information on this site is to be used for informational purposes only and is not intended or implied to be a substitute for professional CPA or accountant advice. It is important to visit a highly specialized CPA firm in New York with top rated, best in class NYC accountants regarding creative ideas customized to your specific needs. Visit a leading Accounting firm in NYC and Queens, NY Miller & Company LLP. We are taking an exceptional individual care of each client.