January 16, 2008
Your Best Bet: Installment Agreements
Probably the best option to solve the IRS problem of unpaid back taxes is an installment agreement. If you are up-to-date with your tax returns, including the past due tax returns, you're qualified for an installment agreement.
You don't have to pay the debt in full because you simply need to make monthly payments to the IRS with the remainder of the debt cancelled.
An installment agreement plan for sixty months is normal for anything below $25,000, but more than that needs negotiation with the IRS.
Find out exactly how much you need to pay, including accrued interests and penalties by requesting copies of your tax returns from the IRS.
To ask for an installment agreement, forms 9465 (Installment Agreement Request) and 433-A (Collection Information Statement) should be accomplished. Along with the forms, attach 3 months' worth of documentation showing income and expenses and a letter requesting for an installment agreement. Determining how much you can afford as monthly payment and preparing the documents is made easy with the assistance of a qualified IRS Problem Resolution professional. It takes around thirty days for the IRS to reply.
It's essential for you to understand that even while you're making payments on an installment agreement, the interest and penalties on your tax debt will continue to accrue.
After you have received a positive response from the IRS, make it top priority to send the payments every month. Your options will be to pay by check, money order, credit card, EFTPS (Electronic Federal Tax Payment System), or automatic withdrawals. The electronic and automatic payments are recommended because there is a chance that the IRS might lose a check or money order.
Whether you need help with an installment agreement or a different IRS problem, our office can assist you. We can show you how to pay your back taxes. If needed, we can walk you through IRS negotiations. Contact us today so we can get started!
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