One of the toughest situations that you will have to face in your life is when you know that you have made a mistake on your tax forms. And we are not talking about a simple mistake, but a very real one. And we use the word mistake, but there are cases where people have done this on purpose. What we are talking about is not paying the amount of tax that you owe. Either paying less or not paying anything at all. These are the types of issues that are more common than you would imagine in the United States.
If you can relate to what we just spoke about, then you may want to read more about what you could do in your situation. And before you do read more, we want to tell you a little bit about how you can rectify the issue that you have created. And we want to stress that you can work out a solution whether you did this by accident or on purpose. It does not truly matter whether you reneged on tax payments accidentally or you did not have an intention of paying the full amount. What matters is how you react.
Whether it is a business or a personal account, you are not going to find yourself in a situation where you are completely in trouble. The reality is that you can get out of this mess, provided that you take swift action. What you are going to want to do is book an appointment with a professional who can help you through this problem. While a tax accountant can give you some help, what you are going to need is a seasoned pro who has helped others with back tax situations. And we can explain why you need their help.
What happens now is that you are going to admit to the IRS that you messed up. You are going to freely admit that you were the person who did not pay their taxes in full, or at all. And you are going to negotiate. There are a few options that you will have. You can either say that you are going to pay the full amount that you owe, and the IRS will decide whether they want to add a fee to this amount. And then you are going to have to decide if you can manage that.
If you can manage it, then you are in good stead. Make the payment, and you will be squared away with the IRS till your next tax bill rolls around. But if you cannot make the full payment, do not despair. There are two more options. You can either negotiate so that you pay the full amount and any added fees using installments each month, or you can have the full amount reduced so that you can make one reduced payment right now. Depending on your specific case and the IRS decision, you will have to hope that one of these options works for you.