Tax Problems: How Should I Deal With Owed Back Taxes?
I did not have any taxes withheld from my 2007 and 2008 paychecks. I owe about 2K from 2007 and 3K from 2008 just for Federal. I live paycheck to paycheck.
What legal route should I take to setup some kind of payment method with IRS for Illinois and Federal?
Also I checked and I did set my W-2 dependents up properly with my employer and they have that on record. Is there any action I can take with regards to that matter as well?
I know I should have checked my statements and now am going to pay the price for not doing so. I get direct deposit and never bother to check online to verify my withholdings.
What should I do?
What are the required and recommended steps?
I asked this question to a friend with some legal knowledge and they told me that I should not contact the IRS directly because I will get burnt and that I should seek legal help.
Help!!
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It is best that you seek out a qualified tax attorney who deals with the IRS and this situation on a regular basis. You should be able to set up some sort of payment plan to pay what you owe in back taxes. There will be penalties tacked on top of what you owe of course, but a good tax attorney may be able to negotiate a lower payment for you. The IRS just wants their money. Avoiding them is the last thing you want to do however. Good luck!