An individual who has realized that he or she owes money to the IRS should contact a CPA and assess just how much money is owed. An accountant can help an individual evaluate how much money is owed them and give an individual good guidance on how to handle future tax returns. Once a person has determined how much money needs to be paid in back taxes, he or she may make a plan for paying off the back tax bill completely. There are several ways to go about paying back taxes. The IRS provides free forms for those who owe back taxes and these can be obtained via the IRS website. If you may pay the bill quickly, they should do so, since putting off payment might end in the IRS putting an interest rate on the money owed or demanding a late payment fee. However, not everybody is able to pay a back tax bill immediately, particularly if he or she does not have a lot of money in savings and/or the bill is very large. Someone who cannot pay the back tax bill quickly should contact the IRS and determine either an installment agreement or compromise agreement. An installment agreement involves working out a deal in which back taxes are paid in installments each month. However, an individual who works out this sort of arrangement with the IRS would need to make sure to pay the full amount due on time, as there can be negative consequences for not doing so. A compromise agreement is much harder to figure out than an installment agreement. In a compromise agreement, the IRS agrees to not claim some of the money it is due and a person only has to pay a part of his or her back taxes. One should only ask for such an agreement if there are no chances of ever being capable to pay back the full total that is owed. Additionally, the Internal revenue service will only think about a compromise agreement if a person is going through brutal financial hardships and/or it is not obvious just how much an individual has to pay in back taxes. Anyone who owes back tax should pay this bill off as soon as he or she may. Preferrably, one should pay the whole amount he or she owes every year. Thankfully, an individual who has made a mistake and owes back taxes might repay these without having to go up against drastic consequences. The first step would be to consult a CPA and then contact the Internal revenue service as to which repayment alternative would be the most appropriate.