If you owe back tax, use this simple guide to file fast
Is a recession the best time to file back taxes? Many tax experts claim that it is! Right now, people who owe back tax also owe other creditors, and knowing which ones to pay first is hard. The good news? The IRS is one of the more generous lenders out there, if you get in touch with them and make your case.
It’s surprising, but true! Taxpayers who owe the IRS significant amounts can see their tax bill reduced once they start filing back taxes. The secret? The IRS knows that some taxpayers are hard to track down, and that if someone hasn’t paid taxes in a few years, they’re much less likely to do it at all. So the IRS waits for lucky breaks — a new job requiring an extensive credit check, a lucky bit of new information, or even a tip on someone who owes money and could file back taxes but hasn’t.
When you go to them, they’re happy to settle for less than the original amount owed, if you can demonstrate financial hardship. Even if you can’t, people filing back taxes can get extended payment terms from the IRS. Rather than owing one lump sum, they’ll owe smaller payments over a period that can be up to several years.
With economic uncertainty still plaguing the average taxpayer, having a creditor who is willing to negotiate can do a lot. Now is a great time to file back taxes online, and with PriorTax.com, getting started couldn’t be easier.
