Q: I owe a substantial amount to the IRS in taxes. Is there a specific way that you recommend that I pay down the balance?
A: For individual taxpayers, the best way to deal with an unpaid tax liability is to file an installment agreement with the IRS. The IRS is flexible in its positions it can take and grant.
Q: If I owe taxes, is it best to file a tax return or not to file?
A: It is always best to file a tax return on time as opposed to not filing a tax return. If the IRS does not get a tax return, they may eventually file an SFR or substitute for return, which is not in your interest at all. These inflated tax amounts may become permanent amounts for which you must pay.
Q: If I miss a deduction on my tax return, what should I do?
A: Under the Internal Revenue Code and procedure, you have 3 years from the due date of the return to file an amended return. Filing an amended return is the generally accepted procedure to gain access to deductions which may have been missed.
By: Basi & Basi at the Center for Financial, Legal and Tax Planning for Transworld M&A Advisors