Back taxes can haunt taxpayers for years. However, there are several steps that individuals who owe back taxes can take in order to get tax debt relief. Taxpayers need to realize that once they become organized and understand what they owe, the IRS is willing to work with them to solve their tax problems.

First, individuals need to sit down and organize all of their tax paperwork. Did you file all of your returns? Have you not filed for several years because you owed taxes and did not have enough money to pay them? File all tax returns promptly. Many taxpayers do not realize that if they owe money for several years but were due a large refund during one year, they can apply the refund to their delinquent taxes.

Second, prepare the returns. Taxpayers who are far behind should consider hiring a professional accountant or tax preparation company to assist them. These companies know the tax code and are able to help you file. Also, if you file during the summer or fall, the tax prep companies are in their slow season. They may offer you a special discount or help you to file more quickly than during the first portion of the year.

Third, understand what will be refunded and what you owe. Individuals who owe back taxes are likely to both receive refunds and owe back taxes. Refunds can be applied to back taxes in order to eliminate the need to pay cash. Also, individuals may be able to file an extension for payment. However, interest and late fees may be charged unless individuals setup a payment plan with the IRS or their state treasury department.

Fourth, pay off your back taxes. Many banks, credit unions and other lenders are willing to give out loans to individuals who owe tax money. The interest rates are fairly generous and they are generally willing to lend as long as your income supports repayment. Also, make sure that you pay off the taxes as quickly as possible. Taxes generally accrue interest and other penalties to ensure that taxpayers make on time payment.

Fifth, make estimated payments for future taxes that are owed. Individuals who know they will owe taxes in the future can make estimated payments throughout the year. These estimated payments will be applied to their future tax debt and ease the burden of paying for their taxes at one time.