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Back Taxes

Many taxpayers find themselves in the position of owing back taxes to the Internal Revenue Service (IRS) for several reasons. Some of the most common reasons include:

  • A taxpayer that is self-employed and fails to make estimated quarterly income tax payments or does not pay enough
  • Failing to file a tax return in the past
  • If the taxpayer is a small business owner, miscalculating payroll tax deposits of failing to make timely payments

The common reasons for owing back taxes happen due to honest mistakes or ignorance of the law in a many situation rather than a deliberate attempt to avoid paying the IRS. The IRS does not consider these valid reasons to fall behind in payment. LifeCycle Tax and Wealth Management can help YOU find the best way to handle your back taxes issue.

The Internal Revenue Service will inform taxpayers that they have a delinquent tax issue but will not always tell the taxpayer the back taxes owed. It is up to the taxpayer to contact the IRS to request a Record of Account. The taxpayer can get this form from a local IRS office or by contacting its toll-free telephone number and making a request. Prior to calling or visiting a local branch office, the taxpayer needs to complete Form 4506-T, Request for Transcript of Tax Return.

The most important thing the taxpayer can do if back taxes are owed to the IRS is to be proactive. The services of an Enrolled Agent at Lifecycle Tax and Wealth Management demonstrates to the IRS that the taxpayer has taken the initiative to resolve the back taxes issue. Our Enrolled Agents at LifeCycle can help the taxpayer avoid further IRS issues by negotiating with the IRS to reach a settlement.