1-800-548-4639Wondering if you owe back taxes and have a standing debt to the IRS? You’re certainly not alone. Nearly a quarter of Americans owed back taxes to the IRS in 2023. Figuring out whether you owe back taxes and identifying the best next steps can be challenging, but BC Tax is here to support you every step of the way.
How to Find Out if You Owe Back Taxes
How do you know if you have tax debt? Most people realize they owe back taxes when they receive an IRS notice in the mail. If you have any concerns that you might have missed a notice and still potentially owe back taxes, there are several steps you can take to check. The easiest ways to find out if you owe back taxes include:
- Reach out to BC Tax: We have the tools and expertise to find out exactly what you owe.
- Check your online tax account: Log in to IRS.gov to view your tax records and see if you have any outstanding debt.
- Review tax returns: Filing or amending your past year’s tax return can help you determine any tax debt you owe.
- Contact the IRS directly: Have questions about whether you owe back taxes? You can call the IRS at 800-829-1040.
How to Calculate Back Taxes
To calculate back taxes, visit the IRS website. Log in by providing personal details, like your last year’s filing status and Social Security number, and then view what you owe. IRS.gov also offers convenient digital tools to help you explore payment options, manage installment plans and learn more about balances and debts.
If you’d rather speak to someone directly to help calculate your back taxes, call us anytime during business hours at 720-390-4617.
What to Do Next if You Have Tax Debt
Do you owe back taxes? Once you’ve identified any debt, it’s important to act quickly. Tax debt accumulates interest, which can quickly snowball if not addressed. It’s not always easy to know whether an IRS installment plan or personal debt is the better option. In some cases, the interest rates on personal loans or credit cards may be more favorable than what the IRS charges. We can help you evaluate your options and make the best decision for your situation.
Common methods of dealing with tax debt include:
- Paying off the debt: If you have the means to pay off back taxes outright, this is the easiest and most cost-effective way to avoid accruing interest.
- Filing taxes and paying what you can: Even if you can’t pay the full amount, it’s important to file your taxes and pay whatever is feasible. You can then determine a payment plan to resolve the remaining debt.
- Requesting an installment plan: Payment plans are typically flexible and can be built around your budget and needs. With a payment plan, you can budget for monthly installments, but keep in mind that interest will continue accruing in the meantime.
How BC Tax Can Help You Navigate Tax Debt
If you’ve realized you owe back taxes, it can be daunting to know where to start. There’s not always a straightforward roadmap to clearing up this debt, and communication with the IRS can be inconsistent and slow. BC Tax specializes in financial consulting to help you navigate the complexities of tax repayment and relief and choose the best path forward. With more than 20 years of experience, we’ve built a trusted reputation for helping clients successfully resolve their tax debt.
We start with a free consultation to understand your unique situation. We then tailor our approach to your needs, which might include:
- Applying for a short-term or long-term payment plan to repay your debt in manageable installments.
- Filing an Offer in Compromise to request tax relief and resolve your debt.
- Applying for non-collectible tax status to clear your debt.
No matter how much you owe, our team is here to help you alleviate the burden of tax debt.
Contact BC Tax Today for a Free Financial Consultation
With BC Tax’s support, you can resolve your back taxes and step forward with confidence and financial freedom. Our experienced team is committed to providing a transparent, smooth and supportive experience. To get started, reach out to BC Tax today for a free financial consultation.
Authored by the BC Tax Insights Team, this article reflects the collective expertise and experience of our seasoned tax professionals. The Insights Team at BC Tax comprises specialists with a deep understanding of various tax scenarios and solutions. With a focus on providing informative, accurate, and practical insights, our goal is to guide readers through the complexities of taxation and financial planning. Every piece is crafted with the intent to help individuals and businesses navigate the ever-evolving world of taxes, ensuring clarity and confidence in decision-making.
