Latest Facts and News
- The IRS processed over 168 million individual tax returns in 2023.
- The IRS has resumed full collection actions after COVID-related restrictions.
- Millions of IRS bills have recently been sent to those who owe back taxes.
Back taxes don’t just show up out of the blue. The IRS sends notices to let you know if something is wrong or if they are about to get into an IRS collection process. But it’s easy to miss these letters or not understand what they mean. Maybe you thought everything was fine with your taxes, or you accidentally left something out.
The problem is that unpaid taxes don’t stay small. Over time, they grow because of penalties and interest. If ignored for too long, the IRS can take action like garnishing your wages or putting a lien on your property. Many people only realize they owe back taxes after the situation worsens.
But you don’t have to let it get to that point. There are simple ways you can follow to get the answer to how to find out if you have back taxes. Knowing these methods, you can understand your tax situation and start fixing the problem.
This blog post will walk you through how to find out and what you can do next.
Also Read → How Long Does It Take to File Your Taxes?
Methods to Determine if You Owe Back Taxes
If you are here, that means you are not sure whether you have back taxes or not. Well, sometimes this is not an easy thing to get to the methods, but we can simplify that for you.
Here are the methods you can follow and know how to find out if you have back taxes and take action:
Check Your Mail
Anyone looking to find out if you have back taxes must check their mail as soon as possible.
The IRS will surely send you letters or notices if you owe taxes. Following that, these letters might explain the amount due or mention penalties. The best possible advice that should be taken here is to carefully read through any mail from the IRS, it’s very important and shouldn’t be ignored.
The IRS letter has complicated codes and you may get confused between them. in those situations, you can always ask for help to understand what it means and what steps to take next.
Review Your Tax Returns
Check your previous tax returns to see if the tax return review was properly reported. Sometimes, missing income or small mistakes can lead to unpaid taxes. If you didn’t file for a certain year, you may have an unpaid tax liability for that too.
If you can’t find a copy of your old returns, don’t stress. You can request them from the IRS or the accountant who helped prepare them. Hopkins CPA Firm can also help you go through your records and figure out if there’s anything that might be missing or incorrect.
This way you can figure out how to find out if you have back taxes in one way. Let’s see another way of determining with the help of an IRS tool.
Log Into the IRS Website
You can use the IRS website for tax debt verification to check what you owe.
So far, this is one of the best options that answers how to find out if you have back taxes.
This shows your IRS account balance, payment options, and past payments. If setting this up feels confusing, we can handle it for you and make the process simple.
To set it up, you need to create an account with the IRS. You can verify your identity by uploading your government ID and taking a selfie or through a quick video call. Once you log in, you can even make payments directly.
If you find this process confusing or don’t want to handle it yourself, we can do it for you; our experts at the Hopkins CPA firm are anywhere you might be located. Whether it’s setting up your account, verifying your identity, or checking your tax records, we’re here to help. Just book a consultation, and we’ll make sure everything is sorted for you.
Call the IRS
Contacting the IRS directly is not an easy thing but if you have no other option left, you can call them at 800-829-1040 and get the answer if you own it or not. While you call, make sure you have a few things in hand, like your social security number, past tax returns, and any letter that the IRS sent you earlier.
There are times when the IRS does not take the call and you are stuck with your question about how to find out if you have back taxes. Plus, many times you feel like you have less confidence to talk with an authorized person or it may feel time-consuming.
In any of these situations, let us step in. We can contact the IRS on your behalf and get all the details for you. This saves you time and makes the process less stressful.
Let a Tax Expert Handle It
If any of these methods feel confusing or you think that dealing with them on your own is not feasible, then the Hopkins CPA Firm is here to help.
- They will help you answer how to find out if you have back taxes.
- Whether you just need clarity or want us to deal with the IRS for you.
We’ve got your back. Schedule a consultation today, and we’ll take care of the rest so you can move forward stress-free.
Steps to Take After You Find Out You Owe Back Taxes
Once you have determined how to find out if you have back taxes, the next steps can be overwhelming, especially if you do not understand why the letter arrived. That’s where we come in.
Here’s how we help make the process simple for you:
Step 1: Gather Your Tax Records
We help you collect all the tax returns and records for the years you owe. If you’ve lost some documents, don’t worry—we’ll request copies from the IRS or help you retrieve tax transcripts to ensure nothing is missing.
Step 2: File Any Missing Tax Returns
If you have not filled out your taxes for some years, this is not something new. Many people in America are not doing it. And this is why we have been doing it for years for them, and so we can do it for you too. We will prepare the return using the form that fits your situation. Not just this, we will also make sure that any kind of mistake is fully avoided to not face any further delays.
Step 3: Calculate Penalties and Interest
We calculate how much you owe, including penalties and interest, so there are no surprises. If you qualify for penalty relief, we’ll work on getting those reduced or removed to lower your total debt.
Step 4: Help You Pay Your Back Taxes
Whether you can pay the amount in full or need a payment plan, we’ll guide you through your options and even negotiate with the IRS on your behalf. Our goal is to make sure your debt is manageable and resolved as quickly as possible.
Let’s Close With a Clear Focus!
Knowing Your Back Taxes Means You Can Fix Them →
Now that we have figured out how to find out if you have back taxes and after exploring the ways, you are sure that you owe back taxes; don’t hold on there. It’s important to also think about how this fits into your overall financial situation. Take a closer look at your budget and spending habits to see if you can manage future tax payments while you are still in the middle of figuring out your current debt.
If paying what you owe feels impossible, don’t worry. There are so many possible ways to make it easier. Try adjusting your monthly expenses or selling things you no longer need; this can help you free up cash And saying that does not mean that you have plenty of cash in hand at the moment but you will gradually collect some if you practice this for a long period of time.
And if that still feels too much to be done at once on your own, you don’t even have to. At Hopkins CPA Firm, we can help you understand your options and work on a plan that fits your situation. Whether it’s creating a strategy to pay off your debt faster or finding long-term solutions for financial stability, we’re here to guide you.
Reach out to us, and let’s start making things easier for you, be it how to find out if you have back taxes or even resolve your other tax-related issues.
FAQ's
How far back can the IRS collect back taxes?
The IRS has 10 years to collect what you owe, but at times these actions can extend this time. Keeping that in mind, if you’re unsure about your situation, we can check it for you at any time you need us and we will also help you take the right steps based on your situation.
What happens if I ignore IRS notices about back taxes?
Ignoring notices is not a small mistake; it can turn into bigger problems you are not at all ready for. Penalties or even liens. If you’ve received a letter that says you owe the IRS a big amount and don’t know what to do or how to find out if you have back taxes, we can handle it for you and work hard to resolve the issue with the IRS.
Can I negotiate my back taxes with the IRS?
Yes, you can definitely have a lot of options. Once you know how to find out if you have back taxes, you can explore options like payment plans or settlements to reduce what you owe.
If you’d like to have a helping hand in exploring these options, we can guide you and handle the process on your behalf.
How does owing back taxes affect my credit score?
Well, back tax does not have any direct effect on your credit score. But you have to be careful if the situation is worse. If you have a tax lien, it can for sure cause damage. If this concerns you; we can help you understand your risks and fix the issue before it impacts you further.
Are there any programs to help pay back taxes?
Yes, there are programs to help with back taxes, like payment plans and penalty relief. If this feels confusing or overwhelming, we can help you apply and make it much easier for you.
