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Obtain copies and relevant documentation in
preparation to complete tax returns. If you don’t complete a tax return
the IRS will complete a “Substitute Return” which is one tax return for
you for all the years you did not pay. If the IRS has already done this
then you need supporting documentation to amend their return and you
need to let any professional you work with know that the IRS has filed
a substitute return already. Their Substitute Return tax return is not
recommended because they will have no deductions or credits which will
result in you owing more taxes. If you cannot find relevant
documentation, it is best to contact the IRS to get all of the
information you need to file. When you file you need tax documents such
as a W2, 1099 as well as other documents supporting any deductions you
claim.

2) Contact the right Back Taxes Assistance Firm

After
you have all of your relevant documents, contact a tax professional.
When selecting a tax professional it is best to work with a firm that
can file tax returns for you AND negotiate. Otherwise, the process
becomes delayed and you will usually not get the greatest possible
reduction outcome because the services are being broken out between two
firms.

3) Work with Firm To File Tax Returns

You only have
to file tax returns for the last seven years. Your tax professional
will contact the IRS to let them know you will be filing a delinquent
tax returns. Filing normal tax returns for each year will get you into
“compliance” with the IRS. There will be minor fees associated with
using a tax firm but in the grand scheme of things these fees are minor
for what you will totally save usually. After you file your tax returns
you will know how much you owe the IRS.

4) Understand Options To Reducing and Paying your Debt

Next
if you cannot pay the amount you owe, then you can work with your tax
negotiation firm to come up with the best way for you to reduce and pay
off your taxes. In many cases, you can submit an Offer In Compromise
(OIC), however, this option is only available if the IRS is unsure your
liabilities are correct, or they don’t think you can pay–it is rare to
get an Offer in Compromise approved usually though. If your tax
professional feels there is no way to reduce your tax debt, and you
cannot pay the total sum immediately, then you can request a PPIA
(Partial Payment Installment Agreement). PPIAs come usually in a 60
month payoff term. If you owe more than 25K, your tax professional will
submit form 433F (Collection Information Statement), and Form 9465
(Installment Agreement Request) on your behalf.