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So you filed your taxes last month, but for whatever reason, you feel like you might actually owe the IRS taxes, rather than being issued back a return.
Or maybe your situation is different. Perhaps your employer doesn’t deduct taxes from your paychecks throughout the year and you know for fact you’re going to owe.
The only problem is that you have no idea how much you’re going to have to pay.
Either way, you’re still going to have to figure out a way to determine your balance. For most of us, this can be a pretty confusing task.
Trying to figure out what you owe in taxes? Here’s where to start.
The best way to start the process is to think of reasons why you would owe. Often, you’ll have a gut feeling you forgot something. Just like when you leave the house without your wallet or forget to pack a swimsuit on a vacation to the beach.
Can you find all the past tax returns you’ve filed?
If not, then that might be a sign you owe taxes to the state or federal government. Just because you can’t find it, though, doesn’t mean you didn’t file it. You could have just misplaced it.
Hopefully, you have kept some accurate, up to date records on your taxes. It will help you greatly in the long run, but if you haven’t there are a few ways you can find out.
If you’ve got a feeling that you owe money, chances are you probably do.
If you fail to file or pay your taxes on time or in full, the IRS will send you notices known as “CP Letters.” The IRS will typically contact you 60 days after the tax filing deadline (which was April 18th this year), or send letters to your last-known address.
Regardless of whether you file the tax return or are preparing it for the first time this year, you must increase your tax bill for the interest and penalty charges the IRS imposes when you pay your taxes late. Calculating your penalties and interest will provide you with a more accurate estimate of what you need to pay.
It is important to know precisely what you owe so that you can properly deal with your situation and understand which tax solution is best for you.
What do you actually owe the IRS?
If you Owe Taxes to the IRS it’s Important to Act Now
Hiring an experienced tax attorney, CPA, EA or licensed tax professional can often be the best course of action to find out how much you owe the IRS. They can offer you the best advice on the best way to resolve your situation. A trustworthy tax attorney will also act on your behalf and represent you in front of the IRS. However, finding the proper help you need can be difficult.
As always, the tax attorneys and licensed professionals at Boxelder Consulting are here to help you. Contact us today for a free consultation.